Written Answers Nos 165-186
165. Deputy Finian McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade further to Parliamentary Question No. 60 of 22 March 2012, if this review of the working of the election roster has been completed; the outcomes of the review; and if he will make a statement on the matter. [50037/12]
Amharc ar fhreagra166. Deputy Finian McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade the individual cost of each trip taken by persons as part of Ireland's international election monitoring since the beginning of 2012; and if he will make a statement on the matter. [50038/12]
Amharc ar fhreagraI propose to take Questions Nos. 165 and 166 together.
International election monitoring missions play an important role in the promotion of democracy and human rights. The Department of Foreign Affairs and Trade maintains a roster of observers for election monitoring missions. We aim to ensure that, when requested, Ireland is represented at an appropriate level in international observation missions for both elections and constitutional referendums. Irish observers participate primarily in missions organised by the European Union (EU) and the Organisation for Security and Cooperation in Europe (OSCE), but have also been involved in missions organised by the Council of Europe, the United Nations and the Carter Centre. So far in 2012, 57 Irish observers have been involved in missions organised by both the EU and OSCE, across 11 countries.
Observers who participate in missions supported by the Department are entitled to one pre-departure grant of €600 in every twelve month period to cover any costs incurred in preparing for the trip, including vaccinations and other medical expenses. For EU led missions, any additional costs are covered by the European Commission.Observer costs for OSCE-led Missions are met by the participating countries. In Ireland’s case, these funds come from the Irish Aid budget.
The election observation programme is subject to continuous monitoring to ensure it is efficient and effective and provides the best possible value for money. A list in tabular form of the costs for each Irish election observer funded by Irish Aid from January 1st 2012 to date is set out below. For obvious reasons, the costs associated with long-term observers (LTO) are higher than those for short-term observers (STO).
There are currently some 300 people on the Election Observation Roster. At present, the roster is not open for new members but I am aware that there are quite a number of individuals interested in joining the roster.I am keen to ensure that members of the roster will have the specific skills requested by the OSCE and the EU, including language skills. As previously stated, I have asked officials to carry out a detailed review of the roster and how it works, and to prepare proposals on future membership. I hope that the review will be completed in the near future.
Election Observation Missions 2012 to date
(57 observers on 11 missions)
|
COUNTRY |
ORGANISATION |
ROLE |
NAME |
COST € |
|
January |
||||
|
Kazakhstan |
OSCE |
STO |
Patricia Barker |
3,643 |
|
Kazakhstan |
OSCE |
STO |
Paddy Buckenham |
3,193 |
|
Kazakhstan |
OSCE |
STO |
Paul Cosgrave |
3,643 |
|
Kazakhstan |
OSCE |
STO |
Michael Humphreys |
3,643 |
|
Kazakhstan |
OSCE |
STO |
Cecilia Keaveney |
3,643 |
|
February |
||||
|
Senegal |
EU |
LTO |
Diarmuid Peavoy |
0 |
|
Senegal |
EU |
STO |
Aidan O’Shea |
0 |
|
March |
||||
|
Russia |
OSCE |
LTO |
Michael Verling |
17,029 |
|
Russia |
OSCE |
STO |
Grattan Lynch |
4,301 |
|
Russia |
OSCE |
STO |
Julian Clare |
3,756 |
|
Russia |
OSCE |
STO |
Noreen Kerins |
4,301 |
|
Russia |
OSCE |
STO |
Chris Andrews |
4,301 |
|
May |
||||
|
Armenia |
OSCE |
LTO |
Sean O’Callaghan |
6,967 |
|
Armenia |
OSCE |
STO |
Ann Ormonde |
3,304 |
|
Armenia |
OSCE |
STO |
Blaise Treacy |
3,304 |
|
Armenia |
OSCE |
STO |
Edward Horgan |
3,304 |
|
Armenia |
OSCE |
STO |
James McNamara |
3,304 |
|
Armenia |
OSCE |
STO |
Terence Fleming |
3,304 |
|
Armenia |
OSCE |
STO |
Brian Fagan |
3,304 |
|
Armenia |
OSCE |
STO |
Eimear Friel |
2,717 |
|
Serbia I |
OSCE |
LTO |
Orla Cluff |
6,827 |
|
Serbia II |
OSCE |
LTO |
Peter McMahon |
3,685 |
|
Algeria |
EU |
LTO |
Dorcha Lee |
600 |
|
Algeria |
EU |
STO |
Mary Boland |
0 |
|
Algeria |
EU |
STO |
Peter Ballagh |
0 |
|
July |
||||
|
Timor Leste |
EU |
LTO |
Mary O’Shea |
0 |
|
September |
||||
|
Belarus |
OSCE |
LTO |
Peter Donovan |
8,086 |
|
Belarus |
OSCE |
STO |
Noel Brennan |
2,775 |
|
Belarus |
OSCE |
STO |
Julian Clare |
2,230 |
|
Belarus |
OSCE |
STO |
Patrick Finneran |
2,775 |
|
Belarus |
OSCE |
STO |
Finbar O’Sullivan |
2,541 |
|
Belarus |
OSCE |
STO |
Deirdre Grogan |
2,857 |
|
Belarus |
OSCE |
STO |
Mark Long |
2,857 |
|
Belarus |
OSCE |
STO |
Rebecca Moynihan |
2,775 |
|
Belarus |
OSCE |
STO |
Anne Choiseul |
2,775 |
|
October |
||||
|
Georgia |
OSCE |
LTO |
Eithne MacDermott |
6,730 |
|
Georgia |
OSCE |
STO |
Cecilia Keaveney |
3,546 |
|
Georgia |
OSCE |
STO |
Eileen McCabe |
4,146 |
|
Georgia |
OSCE |
STO |
John O’Connor |
4,122 |
|
Georgia |
OSCE |
STO |
Peter Emerson |
4,146 |
|
Georgia |
OSCE |
STO |
Conor O’Clery |
4,122 |
|
Georgia |
OSCE |
STO |
James Mallon |
4,122 |
|
Georgia |
OSCE |
STO |
Les Allamby |
4,122 |
|
Georgia |
OSCE |
STO |
Richard McEvoy |
4,122 |
|
Ukraine |
OSCE |
LTO |
Seamus Martin |
11,473 |
|
Ukraine |
OSCE |
LTO |
Michael Verling |
10,746 |
|
Ukraine |
OSCE |
STO |
Eric Byrne |
3,258 |
|
Ukraine |
OSCE |
STO |
Geraldine Power |
3,425 |
|
Ukraine |
OSCE |
STO |
Raymond Dunne |
3,425 |
|
Ukraine |
OSCE |
STO |
Ciaran Kinsella |
3,425 |
|
Ukraine |
OSCE |
STO |
Fionnuala Brennan |
3,425 |
|
Ukraine |
OSCE |
STO |
Kevin Grogan |
3,425 |
|
Ukraine |
OSCE |
STO |
Julian Clare |
2,825 |
|
Ukraine |
OSCE |
STO |
Thomas Bellew |
2,827 |
|
November |
||||
|
Sierra Leone |
EU |
LTO |
Colm Fahy |
600 |
|
Sierra Leone |
EU |
STO |
Michael Coyne |
600 |
|
Sierra Leone |
EU |
STO |
Michael Boyle |
600 |
167. Deputy Joe McHugh asked the Tánaiste and Minister for Foreign Affairs and Trade with reference to the assertion in Fresh perspective: A Needs Analysis of the Irish Community in London, October 2012 that 25.8% of the London Irish community suffer poor health and that isolation may contribute to this poor health, the work his Department is undertaking to address causes and results of isolation within the Irish community in London; and if he will make a statement on the matter. [50054/12]
Amharc ar fhreagra168. Deputy Joe McHugh asked the Tánaiste and Minister for Foreign Affairs and Trade with reference to the assertion in Fresh Perspectives: A Needs Analysis of the Irish Community in London, October 2012 that 94.7% of recent Irish migrants to London report poor or moderate levels of perceived social suppor,; the work his Department is undertaking to engage supports for recent migrants. [50063/12]
Amharc ar fhreagra169. Deputy Joe McHugh asked the Tánaiste and Minister for Foreign Affairs and Trade the engagement by his Department with the British social services in respect of vulnerable elderly Irish citizens who live in the greater London area; and if he will make a statement on the matter. [50065/12]
Amharc ar fhreagraI propose to take Questions Nos. 167 to 169, inclusive, together.
I am acutely aware of the plight of vulnerable Irish citizens around the world and in Britain in particular. Since 2004 the Emigrant Support Programme (ESP), previously Díon, has provided financial support for frontline welfare services. There is an Irish Abroad Unit in my Department and an Irish Communities Section in the Embassy in London reflecting the importance of this issue. Irish organisations in Britain are the largest recipients of ESP funding and have received grants amounting to over €70million since 2004. The emphasis of the Programme’s funding in Britain, as elsewhere, is on supporting frontline welfare services. In 2012, I approved grants of £5,698,400 (just over €7m) in respect of 113 organisations of which £4.485 million (€5.5m) relates to organisations providing welfare and information services to the Irish community, particularly the elderly.
The organisations funded provide a range of services, from informal community networking groups for senior citizens, to outreach services and advice in accessing entitlements. The ESP funds many professional services that provide expert advice and assist Irish people access the relevant supports provided in relation to social, housing and medical needs to name but a few. This support has had a very tangible and positive impact on Irish communities in Britain, in particular on the lives of our vulnerable citizens, a point acknowledged by, amongst others, the Simon Community and the British-Irish Inter-parliamentary Body.
I welcome the publication of Fresh Perspectives – a needs analysis of the Irish Community and am delighted to see both the Federation of Irish Societies and the London Irish Centre working together to improve the lives of Irish people in the UK. The ESP is the lead supporter of both of these organisations who are the largest recipients of ESP funding in Britain receiving £475,000 (€590,000) and £448,500 (€550,000) respectively in 2012.
170. Deputy Gerry Adams asked the Tánaiste and Minister for Foreign Affairs and Trade if he will raise the issues of the continued imprisonment of Marian Price McGlinchey and Martin Corey with the British Prime Minister when next they meet. [45663/12]
Amharc ar fhreagra173. Deputy Gerry Adams asked the Tánaiste and Minister for Foreign Affairs and Trade if he raised the continued imprisonment of Marian Price McGlinchey and Martin Corey with the British Prime Minister in any of their recent engagements. [47411/12]
Amharc ar fhreagraI propose to take Questions Nos. 170 and 173 together.
As the record of the House will show, I raised the matter of prisoners with former Secretary of State for Northern Ireland Owen Paterson on several occasions, and more recently have raised this issue with the new Secretary of State of Northern Ireland, Theresa Villiers. I know that the Taoiseach also took the opportunity to raise the matter with the Secretary of State Villiers when he met her on 2 October.
I have not raised this matter personally with the Prime Minister but I have no doubt that he is aware of our concerns.
I will continue to raise these issues with the British Government, as appropriate, and to convey my concerns to them and to the relevant Northern Ireland authorities.
171. Deputy Gerry Adams asked the Tánaiste and Minister for Foreign Affairs and Trade his role with regard to Ireland's Presidency of the Council of the European Union. [45664/12]
Amharc ar fhreagraAs Tánaiste and Minister for Foreign Affairs and Trade, I have a broad range of responsibilities for Ireland’s forthcoming Presidency of the European Union. In identifying the main priorities of the Presidency, the Taoiseach and I have asked all members of the Government to use the Presidency to focus on the jobs and growth agenda across all policy formations. Tackling unemployment, and particularly youth unemployment, and creating the conditions for sustainable economic growth, will be the core priorities of the Irish Presidency. The General Affairs Council, which I will chair, deals with a broad range of cross-cutting issues including the EU’s future financing. During the Presidency I will work to deliver on a complex EU budgetary process. My aim is to ensure that the Union supports a range of programmes and initiatives that can underpin economic recovery, growth and job creation, and promote greater social inclusion and regional cohesion. The future enlargement of the EU will also figure prominently on the General Affairs Council agenda during the Presidency. EU enlargement is good for European stability and peace and, as Chairperson, I will work to make progress in this area.
To stimulate job creation and growth across the EU, the Irish Presidency has already identified key policy areas aimed at making sure that the Single Market, which has delivered so many benefits for consumers and business over the past two decades, is better equipped to deal with the rapidly evolving digital economy. Our Presidency will also place a strong emphasis on promoting greater coordination of, and support for, the Union’s research and innovation agenda, to ensure that the EU can become more globally competitive. But Europe also needs to look beyond its own borders to facilitate more exports which can sustain and create employment and economic growth. This is why Ireland, as Presidency, is placing a strong emphasis on moving the EU external trade agenda forward. A meeting of Trade focusing on the on the EU-US trade relationship will take place in April 2013. We hope to deliver a mandate for EU-US trade talks.
The Irish Presidency will support the High Representative for Foreign Affairs and Security Policy, and the European External Action Service in promoting the Union’s values of peace, democracy and respect for human rights abroad. These values were explicitly recognised in the awarding of the Nobel Prize to the EU. Much of the Foreign Affairs Council agenda will be taken up with responding to current events, but issues such as the ongoing crisis in Syria, and the Middle East Peace Process are likely to feature prominently on the Council agenda during the Presidency. Ireland places a very strong attachment to development aid, and this is why, as Presidency, we will host a number of events in Dublin including an informal Ministerial meeting and an international conference in Dublin, bringing together the themes of hunger, nutrition and climate justice, working in close cooperation with Mary Robinson Foundation. During our Presidency we will work to advance agreement with partners on the EU approach to the post-2015 framework for international development as we look beyond the 2000 Millennium Development Goals.
Work on preparing for the Presidency is now entering its final weeks. While the agenda is considerable, we look forward to meeting the challenges and seizing the opportunities that the Presidency presents to create a better Europe for citizens in Ireland and across Europe. I will continue to have meetings with partners from other Member States and the institutions. During this month we are hosting visits from several high-level groups and Committees from the European Parliament to discuss our approach to the Presidency and to build on the already constructive working relations that we have with MEPs.
172. Deputy Gerry Adams asked the Tánaiste and Minister for Foreign Affairs and Trade the work his Department has done in relation to identifying further areas for North-South co-operation. [47230/12]
Amharc ar fhreagraPromoting and expanding North/South cooperation is a priority for the Government. At the NSMC Plenary meeting which took place on 2 November 2012 in Armagh, I had the opportunity, together with my colleagues, to review progress across a range of areas of already existing North South cooperation. I have also been working with my Government colleagues in identifying further areas of North/South economic co-operation, and actively supporting them in pursuing these with the Northern Executive. This has been taking place both inside and outside the formal structures of the North South Ministerial Council (NSMC). Particular areas which have been identified include the agri-food sector; higher education; cooperation on reducing duplication which can ease budgetary pressures for both administrations; and conflict resolution. My officials have been working to advance the North West Gateway Initiative, which is of particular importance to that region. Consideration is also being given to working together to build trade links with Asian economies, especially China and India.
The areas of sport and tourism are further areas where we can seek to expand cooperation. Those two areas dovetail well. Tourism is vital to both economies and it is important to maximise the benefits of major initiatives such as the Titanic centenary, the Gathering 2013, and Derry’s City of Culture celebrations.
The Government is fully committed to exploring ways of increasing the level of North/South co-operation across the full range of activities for which we have responsibility and to broadening contact with all relevant organisations and groups in Northern Ireland.
We continue to make a case to our colleagues in the Northern Ireland executive for progress with regard to the Second and Third Terms of Reference of the St. Andrews Review which look to the future of North/South cooperation. In our view, this is now overdue. Most recently, I raised this issue with the Northern Ireland Deputy First Minister when I met him in Belfast on Sunday.
174. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade if he has discussed the agreement on Scotland holding a referendum in 2014 with Prime Minister Cameron or Scottish First Minister Alex Salmond; and if he will make a statement on the matter. [46065/12]
Amharc ar fhreagra175. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade his views on whether the Scottish referendum in 2014 has any implications for the island of Ireland; and if he will make a statement on the matter. [46066/12]
Amharc ar fhreagra176. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade if the Scottish referendum has been discussed at the recent EU Council meeting; and if he will make a statement on the matter. [46067/12]
Amharc ar fhreagraI propose to take Questions Nos. 174 to 176, inclusive, together.
The debate on Scottish independence is naturally one that I am following very closely. Any change in the status of Scotland within the United Kingdom would certainly have implications for our relations, both with Scotland and with the United Kingdom.
Of course, the issue of independence is a matter for decision by the people of Scotland. As part of the Edinburgh Agreement of 15 October last, both the Scottish and British Governments have committed to respect the outcome of the referendum, whatever it might be. In terms of process, it has been agreed that the wording of the question to be asked in the referendum, the exact timing of the referendum and the franchise of those eligible to vote in the referendum are all a matter for the Scottish Government.
I am not aware of the Scottish referendum having been discussed by the EU Council.
177. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade if he is planning to take part in any forthcoming trade missions; and if he will make a statement on the matter. [45672/12]
Amharc ar fhreagra179. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to partake in a trade mission in the near future; and if he will make a statement on the matter. [48011/12]
Amharc ar fhreagraI propose to take Questions Nos. 177 and 179 together.
As Minister for Foreign Affairs and Trade, I seek to promote Ireland’s trade interests wherever possible, whether at targeted events organised by Enterprise Ireland or in the course of broader working visits. Enterprise Ireland is currently preparing proposals for Ministerial Trade Missions in 2013 which will be transmitted both to me and to the Minister for Jobs, Enterprise and Innovation for consideration and approval.
My colleague, the Minister of State for Trade and Development, Joe Costello TD, is also active in promoting Ireland’s trade interests overseas and has led a number of Trade Missions during the course of the year. Most recently, he led an EI Trade Mission to Brazil organised in conjunction with the President’s visit to Latin America and he participated in Enterprise Ireland trade events and business meetings in Rome. He is currently leading Enterprise Ireland’s Trade Mission to South Africa.
178. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade if he will outline the EU Council's actions to be taken and Ireland's contribution following the discussion on Syria; and if he will make a statement on the matter. [47589/12]
Amharc ar fhreagraThe deeply worrying situation in Syria was a key item addressed at the EU Foreign Affairs Council which I attended in Luxembourg on 15th October. The Council adopted strong conclusions which made clear that the EU continues to stand by the Syrian people in their courageous struggle for freedom, dignity and democracy.
The absolute priority remains stopping all violence and ending oppression. The Council expressed its full support for the efforts of the UN/Arab League Joint Special Representative, Lakhdar Brahimi, to secure an early ceasefire and promote an overall political settlement. There was clear agreement within the Council on the necessity for the international community, including the UN Security Council and the main regional powers, to uphold their responsibilities and work alongside Special Envoy Brahimi. While it is regrettable that his call for a pause in the fighting on the occasion of the Eid al Adha festival was not observed on the ground, we must continue to support his efforts in pursuit of a peaceful and orderly political transition.
No political solution in Syria will happen without a wide consensus among those opposing Bashar al-Assad’s oppressive rule. The Council urged all opposition groups to set aside their differences and agree on a set of values and common objectives towards a genuine political transition.
The Council also expressed deep concern concerning the spill-over effects of the crisis on neighbouring countries. It strongly condemned the shelling by Syrian forces of Turkish territory, including the attack on the border town of Akcakale on 3 October, and warned again about the dangers of further militarisation of the conflict while calling for the flow of arms to Syria to be curbed.
The rapidly deteriorating humanitarian situation was also discussed. The Council recalled the moral imperative for the international community to step up assistance to all affected populations in Syria and neighbouring countries. Ireland, for its part, is already making a substantial contribution to humanitarian relief efforts, having provided €2.45 million in assistance to date which has been principally channelled through UNHRC, ICRC and WHO. At the end of August, the Minister of State for Development Cooperation, Joe Costello T.D., visited Zatari refugee camp in Jordan in this connection.
The Council also approved a further round of restrictive measures targeted against the Assad regime and its supporters, giving the Syrian Government’s continuing failure to end repression and to desist from waging war and inflicting horrendous suffering on its own people.
While EU sanctions have been effective in increasing pressure on the regime, I nonetheless continue to believe that the most effective measure which could be taken now to end the violence in Syria would be the imposition of a comprehensive arms embargo by the UN Security Council.
The European Council, which the Taoiseach attended in Brussels on 18/19 October, also adopted brief Conclusions on Syria which essentially endorsed those adopted by the FAC on 15 October.
180. Deputy Seán Kyne asked the Tánaiste and Minister for Foreign Affairs and Trade if he will outline the opportunities that persons in lower grades of the public service have been afforded to contributing to the reforms of the public service as sought in the public service agreement; and if he will make a statement on the matter. [50643/12]
Amharc ar fhreagraThe Public Service Agreement, 2010-2014 (the “Croke Park” Agreement) provides a framework for public service management and staff to work together to reduce the cost of delivery of public services while also maintaining or improving the quality of those services. While Departmental Action Plans are a management responsibility, staff in all grades have been invited to input suggestions into the formulation of my Department’s approach to implementation of the Agreement and have been consulted on an ongoing basis on the plans, progress and savings reports which have been submitted to the Croke Park Implementation Body. These important matters are the subject of regular and detailed discussions between Departmental management and staff representatives.
I greatly appreciate the contribution made by the staff of my Department to the design and delivery of the ongoing reforms in our business processes which have yielded substantial and sustained savings in administrative running costs. These reforms are contributing to the effort to meet the challenge of maintaining the range, quality and geographic scope of the policy, programme management, promotional and frontline citizen services provided by the Department with the substantially reduced resources available.
181. Deputy Gerry Adams asked the Minister for Finance his plans to introduce legislation to place NewERA on a statutory footing. [49418/12]
Amharc ar fhreagraIn September 2011 the Government announced the establishment of the New Economy and Recovery Authority (NewERA) within the National Treasury Management Agency (NTMA). NewERA will centralise the management of Government holdings in the commercial semi-state sector (initially the companies within NewERA’s remit are ESB, EirGrid, Bord Gáis, Bord na Móna and Coillte ) from a shareholder perspective. This role, based on the Shareholder Executive model already established in a number of developed economies, will involve oversight of activities such as capital expenditure plans, corporate strategy, acquisitions and disposals. NewERA is already working closely with the relevant Government departments and companies in this regard. The Shareholder Executive approach is designed to provide the Government with a portfolio view of investment returns from the sector and with a means of assessing the likely impact of commercial developments in the sector on long-term Government investment plans.
NewERA is also charged with assisting the development and implementation of Government plans for investment in energy, water and next-generatio telecommunications with the long-term objective of employment creation and has commenced work with the relevant Government departments in these areas. NewERA is an important element in the Government’s strategy to promote economic growth and create jobs. Officials of my Department are liaising with the National Treasury Management Agency in preparing proposals for legislation to put NewERA on a statutory footing and I expect to bring forward those proposals as soon as possible once that work is complete.
182. Deputy Mary Lou McDonald asked the Minister for Finance if public servant pension abatement rules are being applied to public interest directors appointed by the Government to the Irish Bank Resolution Corporation, Permanent TSB, Bank of Ireland and Allied Irish Banks; and, if not, if he will confirm the annual pensions paid to these same public interest directors. [49557/12]
Amharc ar fhreagraI am advised that public servant pension abatement rules do not apply to fees paid to the Public Interest Directors appointed to the boards of Irish Bank Resolution Corporation, Permanent TSB, Bank of Ireland or Allied Irish Bank. The abatement rules could not be applied to these fees as the institutions involved are not within the Public Service. As the issue of public service pensions is a matter for my colleague the Minister for Public Expenditure and Reform I have asked him to forward the information to the Deputy directly.
183. Deputy Terence Flanagan asked the Minister for Finance the support available for Irish small businesses from the banks; and if he will make a statement on the matter. [49578/12]
Amharc ar fhreagraAs the Deputy is aware, the Government has imposed SME lending targets on the two domestic pillar banks for the three calendar years, 2011 to 2013. Both banks were required to sanction lending, including lending for working capital purposes, of at least €3 billion in 2011, €3.5 billion this year and €4 billion in 2013 for new or increased credit facilities to SMEs. Both banks achieved their 2011 targets. The Head of the Credit Review Office (CRO), Mr John Trethowan, stated in his recently published ninth quarterly report that “€3.5bn of sanctions for each bank is a very challenging target, however the remaining five months typically show more lending activity and I am of the view that, after a slow start to the year, the targets will be a challenge but still may be achieved.” In terms of rejection rates from banks in general, the CRO can review decisions by the pillar banks to refuse, reduce or withdraw credit facilities (including applications for restructured credit facilities) from €1,000 up to €500,000. The Credit Review Office is overturning 55% of the decisions referred to them, supplying over €9.5m of credit, supporting 813 full time and 46 part time jobs in the SME sector.
The Relationship Frameworks provide that “the board of each bank will determine the bank's strategy and commercial policy..” but I am aware that the banks provide a range of products for Irish SMEs and also support and help SMEs through various initiatives. For example, the banks have implemented common application forms for business credit and worked on developing cash flow planners.
I would encourage all businesses to keep open communications with their bank and to take advantage of the services available to them.
184. Deputy Olivia Mitchell asked the Minister for Finance the action that can be taken to curtail pensions paid to some of the former top managers in the covered banks; the way these pensions are funded; if he will assure taxpayers that recapitalisation moneys do not and will not underpin these pensions; and if he will make a statement on the matter. [49404/12]
Amharc ar fhreagraAs the Deputy will be aware none of the institutions in receipt of State Aid has used State Funds directly to offset deficits in defined benefit pension schemes. This assurance, provided by the banks, would cover the direct transfer of funds provided in State Aid towards the reduction of deficits in the banks pension schemes. The institutions do contribute, as required by law and regulation, to pension schemes in the normal way. Deficits that exist in pension schemes in the institutions are being reduced generally through increased employee contributions and reductions in future benefits. The Deputy will appreciate, however, an institution’s funds are not generally segregated by source for distribution in specific ways. It is very difficult in terms of a banks funding to categorically state that State Aid does not indirectly find its way through normal employee contribution or pre State Aid contractual arrangements into pension funds. However, in terms of the principal at issue I am assured by the institutions that none of the institutions has used State funds directly to off-set deficits in defined benefit pension scheme funds.
185. Deputy Olivia Mitchell asked the Minister for Finance further to Parliamentary Question No. 207 of 16 October 2012, if legislation or new procedures are in place to ensure adequate monitoring and early action by the Central Bank of Ireland to prevent in the future the losses which occurred in the case of Custom House Capital; and if he will make a statement on the matter. [49405/12]
Amharc ar fhreagraI am advised by the Central Bank that since becoming aware of information relating to client investments and having substantiated its concerns, it ensured that Custom House Capital Limited advised affected clients and reviewed the information that was provided. The Central Bank has further advised that in July 2011, it received information, which increased its concerns regarding the integrity of client investments managed by Custom House Capital Limited. The Central Bank then decided to impose further directions on the firm and in July 2011 to seek the appointment of High Court Inspectors to investigate the affairs of the firm.
An independent review of the Regulatory Regime for the Safekeeping of Client Assets was published by the Central Bank earlier this year and is available on the Central Bank website. The Central Bank has fully accepted the specific recommendations contained in this independent review and is in the process of implementing all of the necessary changes required. However, no amount of skilled supervision or enhanced audit can absolutely guarantee that determined or deliberately concealed efforts to misuse client holdings can be prevented.
I can assure the Deputy that there are several existing powers in place and extensive new powers proposed to ensure adequate monitoring and early action by the Central Bank to prevent the loss of client assets as occurred in the case of Custom House Capital.
I have already brought forward a very wide range of statutory powers to enable the Central Bank to deal with such an issue across the financial service sector under the Central Bank Reform Act 2010, the MiFID Regulation 2007, The Central Bank and Credit Institutions (Resolution) Act 2011 (in respect of credit institutions) and the Central Bank (Supervision and Enforcement) Bill 2011, including a substantial number of new proposals for Committee Stage of the Bill.
The Central Bank Reform Act, 2010, sets out a far-reaching regime for the Central Bank to set out and enforce standards of fitness and probity across the financial service sector, including standards of honesty, integrity and ethical judgement, which apply to those in key management positions. The Act provides for sanctions, at the discretion of the Central Bank, of suspension, or even, prohibition orders, following an investigation and due process. In terms of addressing poor management, the code applies similar requirements in respect of skills and experience. Regulated financial service providers who fail to uphold these standards could find themselves subject to administrative sanction, up to and including a €10m fine or suspension/removal of authorisation.
The Central Bank (Supervision and Enforcement) Bill, 2011, also sets out a number of new provisions that are relevant. The fitness and probity provisions are reinforced by the whistleblower protections proposed in the Bill, which place an onus on those performing pre-approval controlled functions to disclose information relating to offences, prescribed contraventions, and breaches of Irish financial services legislation or the destruction of evidence.
The Authorised Officer powers proposed will allow the Central Bank full access to any information it needs, including the ability to question individuals and access premises. The Central Bank will also have, for the first time, the statutory right to attend meetings of regulated financial service providers and related undertakings, where necessary.
The proposed Skilled Person powers under Part 2 of the Bill will allow for independent and objective analysis of issues within a regulated financial service providers or related undertaking, including client asset requirements. This power has been specifically identified as important in the Central Bank’s recent internal report on safeguarding client assets.
The Bill will also give the Central Bank far-reaching powers of direction, which can be issued on grounds including where the regulated financial service provider is conducting business in such a manner as to jeopardise or prejudice monies held by or controlled by it on behalf of customers; these directions may also apply where the rights of customers are being prejudiced or jeopardised. In such cases the Central Bank can issue very strong directions regarding the suspension of business or modifications to practices, among other things. Such directions are enforceable through the High Court if necessary.
Furthermore, the Bill will provide the Central Bank with the power to make regulations setting out the standards to be met, and the procedures, systems and checks to be adopted, by regulated financial service providers for dealing with and holding the assets and money of customers. This includes provisions on the safeguarding of customers’ rights, in particular in the event of insolvency; the use to which customers’ assets and money may be put; and the management of customer accounts. Again these regulations will be enforceable through the administrative sanction procedure, as enhanced under the Bill.
Committee stage of the Bill as published, will propose further regulation-making powers to the Central Bank which are specifically targeted at enabling the Central Bank to support the protection of client assets including greatly enhanced information gathering powers to allow the Central Bank to ensure that it can demand information from regulated firms. These powers should facilitate investigations on compliance with client assets requirements.
The Bill also proposes a means of restitution, via a Central Bank application to the High Court, where a person has been unjustly enriched or where others have suffered loss or other adverse effects arising from the commission of an offence or a prescribed contravention. This provision is proposed to be further enhanced at Committee Stage in a way which will make it applicable to managers who commit offences or prescribed contraventions.
186. Deputy Olivia Mitchell asked the Minister for Finance if following media coverage (details supplied) of the activities of debt management companies, legislation to control same or bring such companies under Central Bank regulation is being considered,; and if he will make a statement on the matter. [49406/12]
Amharc ar fhreagraThe Government is committed to having in place an effective regulatory/supervisory system for those firms which provide a debt management and/or a debt advice service. I have received Government approval to bring forward an amendment, at the Committee Stage, of the Central Bank (Supervision and Enforcement) Bill 2011 to provide for a regulatory regime for debt management and debt advice companies.
