Written Answers Nos. 55 - 65
55. Deputy Willie O'Dea asked the Minister for Finance his views on the possibility of the State drawing down increased funding from the European Investment Bank to fund investment in the economy; and if he will make a statement on the matter. [14051/13]
Amharc ar fhreagraThere has been continued close engagement with the European Investment Bank (EIB) since President Werner Hoyer’s visit last July when he met with the Taoiseach as well as the Minister for Public Expenditure and Reform and myself. This visit led to the establishment of a Joint High Level Working Group between my Department and the EIB to enable close collaboration on projects aimed at expanding the Irish economy and supporting growth. Since President Hoyer’s visit, Bank Vice-President Tanasescu visited in November 2012, and the newly appointed Bank Vice-President Taylor visited in February 2013. Indeed, Ireland looks forward to its future engagement with the EIB in the context of the Informal Ecofin in April, and thereafter welcoming the EIB Management Committee to Dublin in late April 2013. In terms of funding, Ireland has secured a 23% increase in 2012 compared to 2011 i.e. €585m versus €475m.
56. Deputy Niall Collins asked the Minister for Finance his views on when the ESM will be in a position to consider making direct investment in European banks; the discussions he has had with Irish banks to prepare for this eventuality; and if he will make a statement on the matter. [14056/13]
Amharc ar fhreagraOn 29th June 2012 the Euro Area Heads of State or Government (HoSG) agreed that “… it is imperative to break the vicious circle between banks and sovereigns”. The same statement also made explicit reference Ireland, noting the need to further improve “the sustainability of the well-performing adjustment programme”. They also stated “when an effective single supervisory mechanism is established, involving the ECB, for banks in the euro area the ESM could, following a regular decision, have the possibility to recapitalize banks directly”. This commitment was reaffirmed by the European Council in December, which also mandated the completion of the operational framework for the European Stability Mechanism (ESM) direct banking recapitalisation facility in the first semester of 2013. Work is continuing at technical, senior official and Ministerial levels to complete work on the ESM’s direct banking recapitalisation facility by June of this year in accordance with the mandate of the European Council. Once this operational framework is agreed, it envisaged that national procedures to approve the instrument would be completed by December 2013. On this basis, it will be December 2013, at the earliest, before the ESM’s direct banking recapitalisation instrument is available.
Earlier this week, provisional agreement was reached between the Irish Presidency on behalf of the Council, the European Commission and the European Parliament on the Single Supervisory Mechanism (SSM). As I have noted above, the SSM will pave the way for the ESM to take on the direct recapitalisation of banks. Ireland’s position is that it is essential that the measures introduced for direct banking recapitalisation achieve the object of breaking the link between the sovereign and the banks – as agreed by the HoSG on 29th June last year and confirmed last December. On the question of whether I or my officials have had related discussions with the relevant Irish banks, as the instrument is still in the design phase such discussions would be premature at this juncture. Any such dialogue should ideally await the finalisation and approval of the instrument.
57. Deputy Joe McHugh asked the Minister for Finance if he will explain his concept of sustainable mortgages and unsustainable mortgages here; if he will estimate the number of unsustainable mortgages here; his strategy for supporting people who are burdened by these unsustainable mortgages; the numbers of mortgages drawn down in County Donegal and drawn down in the country that are in long-term arrears; and if he will make a statement on the matter. [13936/13]
Amharc ar fhreagraThe Central Bank of Ireland publishes mortgage arrears statistics on both principal private residences and “buy to let” properties. The most recent available data indicates that, at the end of 2012, 11.9% of PDH and 18.9% of BTL mortgage accounts were in arrears of more than 90 days. The Central Bank has informed me that it does not publish a geographical breakdown of these mortgage arrears figures.
On 13 March 2013 the Central Bank announced new measures to address mortgage arrears, including the publication of performance targets for the main mortgage banks and proposed changes to the Code of Conduct on Mortgage Arrears (CCMA). This comprehensive approach is aimed at ensuring banks offer, conclude and implement sustainable solutions for their customers in mortgage arrears by setting specific performance targets and proposing revisions to provisioning standards. The Central Bank is also proposing to update the CCMA so that it continues to provide protection to customers who cooperate with their bank while facilitating and promoting the resolution of arrears cases.
The Central Bank has also informed me that, in determining whether a proposal constitutes a sustainable solution, the lender needs to evaluate both actual and prospective affordability for the borrower’s affordability and the capital implications for the credit institutions in terms of their prudential responsibility to minimise losses. While the Central Bank is not mandating any particular model of restructuring and while sustainable solutions will be arrived at on a case-by-case basis, there are some fundamental principles that must be respected in that context, including the following:
- The affordability assessment of the borrower needs to be based on both their current and prospective future servicing capacity for all borrowings; assumed prospective future increases in the debt servicing ability of the borrower must be credible and conservative.
- Lenders need to apply a realistic valuation of the borrower’s assets, in particular their property. This also applies to any assumption of potential asset price appreciation, as well as the estimated costs related to a potential foreclosure of property; and
- Lenders need to use an appropriate interest rate when discounting future income flows, which should take account of the lender’s cost of funds.
The Central Bank will assess compliance with these principles in its supervisory audit of compliance with the targets, including through analysis of a sample of modifications, and the durability of the restructured arrangements will be monitored and reported over time by the Central Bank.
58. Deputy Seán Crowe asked the Minister for Finance the number of meetings at which the issue of the retrospective recapitalisation of Irish banks through the ESM has been discussed at ECOFIN or Eurogroup meetings. [14063/13]
Amharc ar fhreagraThe European Stability Mechanism Bill was published in May 2012 and enacted in July 2012. Subsequently, the inaugural meetings of the Board of Governors and Board of Directors of the ESM took place in the margins of Ecofin on the 8th and 9th October 2012. The Eurogroup has discussed the issue of direct recapitialisation by the ESM on three occasions this year (21st January, 11th February and 4th March 2013). In that context, Ministers are assisted by their senior officials who are continuing to work at the technical level to help advance matters. The issue has not been on the formal agenda for Ecofin. Ireland continues, in all engagements on this matter, to stress the importance of the Heads of State and Government statement of June 29th 2012 of breaking the vicious link between sovereign and bank debt.
59. Deputy Sandra McLellan asked the Minister for Finance if he will provide a planned date for when Ireland will no longer be subject to post-programme surveillance having repaid at least 75% of the financial assistance it has received from other member states; and the effects of this post-programme surveillance and the way any move to prolong the maturities of EFSM and EFSF loans will affect this period. [14068/13]
Amharc ar fhreagraAs part of its response to the global economic and financial crisis, the EU has adopted a number of measures. The first of these is EU2020, the EU’s growth strategy for the decade which aims to make the EU a smart, sustainable and inclusive economy. This was followed by the European Semester to which was added the Euro Plus Pact and the so-called ‘six-pack’ which came into effect on 13 December 2011. The ‘six-pack’ is the name given to a legislative package, comprising five regulations and one directive, designed to reform and strengthen the Stability and Growth Pact and to introduce new macroeconomic surveillance.
The proposed ‘two-pack’ - on which political agreement has recently been reached at EU level - is a further step in this process and is, to a great extent, a natural extension of the measures contained in the ‘six-pack’. It will be applicable to euro area Member States only. The first proposed regulation in the two-pack relates to ‘the monitoring and assessment of draft budgetary plans and on ensuring the correction of excessive deficits’. The second proposed regulation under the two-pack is on the strengthening of economic and budgetary surveillance and sets out explicit rules for both enhanced surveillance and post-programme surveillance. As part of this proposed regulation, a post-programme surveillance process will be put in place and maintained for a Member State until the balance outstanding under EU-sourced financial assistance falls below 25% of the total. This covers all EU funding sources, including bilateral loans. Under the terms of this draft regulation, the Commission shall conduct, in liaison with the ECB, regular review missions in the Member State under post-programme surveillance to assess its economic, fiscal and financial situation.
I should add that under the new governance rules of the EU and in particular the Euro area, a greater degree of oversight will be required for all participating Member States in the future in any event. Taking account of lessons of the recent economic and financial crisis, this should underpin a stronger Euro zone and be of benefit to all.
Given that EU Finance Ministers at Eurogroup and ECOFIN on 4/5 March 2013 discussed an adjustment of the maturities on the EFSF and EFSM loans to Ireland and Portugal it is not possible at this time to give the duration of post programme surveillance. The Eurogroup and ECOFIN agreed to ask the Troika to come forward with a proposal for their best possible option for both Ireland and Portugal for EFSF and EFSM loans. In addition, on Saturday last, 13 March, Eurogroup Finance Ministers agreed to an adjustment of the maturities of Ireland’s and Portugal’s EFSF loans.
Work is continuing at official level on the adjustment of the maturities for Ireland and Portugal. In the case of the EFSM loans, this will require discussion and agreement of the EU 27 Finance Ministers, and I expect this matter will be discussed by them in the coming weeks. However, until a final decision by Ministers on the length of any maturity adjustment is taken, and the details of its implementation are known, it will not be possible to assess the impact of such changes on the duration of the enhanced surveillance procedure.
60. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to review Ireland's diplomatic and consular representation in 2013; and if he will make a statement on the matter. [14393/13]
Amharc ar fhreagraIreland’s diplomatic network includes 56 Embassies, 7 multilateral Missions and 10 Consulates General and other offices overseas. In addition to their country of primary accreditation, many Ambassadors are also accredited to additional countries on a non-resident basis which enhances the cost-effectiveness of our external representation. Our missions abroad perform a wide range of functions in pursuit of Ireland’s foreign policy interests. These include representing and advancing government policies with other States and in international organisations, in particular the EU and the UN; economic and cultural promotion; frontline consular and passport services to Irish citizens overseas; engaging with Irish communities and harnessing the resource they offer in assisting economic recovery; and programme management, particularly in Irish Aid priority countries. The scale and deployment of our diplomatic network is considered by the Government on an ongoing basis. Any decision to adjust the State’s external representation by closing, opening or relocating missions will have regard to national priorities and available resources.
61. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade his plans to review his decision to withdraw Ireland's resident ambassador to the Vatican; and if he will make a statement on the matter. [14394/13]
Amharc ar fhreagraAs I have stated consistently, the decision to close the resident Embassy to the Holy See will not be reversed in the immediate term. However, in the context of the budgetary situation, I will continue to review the deployment of our diplomatic resources overseas. Any discussions with the Holy See on arrangements whereby it might be possible to re-establish a resident Embassy at a future date are best conducted in confidence.
62. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Foreign Affairs and Trade the total number of military aircraft that landed at Dublin Airport in 2012 and to date in 2013; the names of the State forces to which these aircrafts belong; and if he will make a statement on the matter. [14428/13]
Amharc ar fhreagraThe Air Navigation (Foreign Military Aircraft) Order 1952 gives the Minister for Foreign Affairs primary responsibility for the regulation of activity by foreign military aircraft in Ireland. My Department granted permission for the landing of 37 foreign military aircraft at Dublin Airport in 2012. By 19 March 2013, permission had been granted for the landing of 34 such aircraft. Permission was granted in all cases subject to the normal conditions that apply to landings at Irish airports by foreign military aircraft, namely, that the aircraft are unarmed, carry no arms, ammunition or explosives and do not engage in intelligence gathering and that the flights in question do not form any part of military exercises or operations.
The table provides details of the countries involved and the number of times permission was sought to land in Dublin Airport. In the vast majority of cases, military aircraft used the landing facilities at Dublin Airport for the transport of dignitaries or other persons participating in high-level visits and official meetings in Ireland. A significant number of these landings relate to Ministerial attendance at the OSCE Ministerial meeting which was held in Dublin in 2012 and at various meetings relating to the Irish Presidency of the EU in 2013.
|
COUNTRY |
2012 |
2013 |
|
BELGIUM |
1 |
3 |
|
BULGERIA |
0 |
2 |
|
CANADA |
4 |
1 |
|
CZECH REPUBLIC |
0 |
4 |
|
FRANCE |
7 |
4 |
|
GERMANY |
1 |
2 |
|
GREECE |
1 |
1 |
|
ITALY |
1 |
3 |
|
KAZAKHSTAN |
1 |
0 |
|
MALTA |
1 |
0 |
|
MONTENEGRO |
1 |
0 |
|
MOROCCO |
1 |
0 |
|
NETHERLANDS |
0 |
1 |
|
NORWAY |
0 |
1 |
|
POLISH |
1 |
0 |
|
RUSSIA |
3 |
0 |
|
SERBIA |
1 |
2 |
|
SPAIN |
0 |
1 |
|
SWEDEN |
1 |
6 |
|
SWITERLAND |
5 |
3 |
|
TURKEY |
2 |
0 |
|
UKRAINE |
1 |
0 |
|
USA |
3 |
0 |
|
YEMEN |
1 |
0 |
|
TOTAL |
37 |
34 |
63. Deputy Sean Fleming asked the Tánaiste and Minister for Foreign Affairs and Trade the progress made within his Department on phasing out the use of LoCall 1890 numbers that can be extremely expensive when dialled from mobile phones and introducing 076 number, which are generally included in tariff bundles provided by most mobile network operators and are charged at the same rate as national calls, in view of the fact that the number of mobile phones exceeds the number of landlines; and if he will make a statement on the matter. [14485/13]
Amharc ar fhreagra64. Deputy Sean Fleming asked the Tánaiste and Minister for Foreign Affairs and Trade if he has considered the use of, or implemented, integrated voice response systems in his Department's phone systems or in the phone systems of agencies within his remit; if the staff and salary cost savings which might arise have been assessed; and if he will make a statement on the matter. [14501/13]
Amharc ar fhreagra65. Deputy Sean Fleming asked the Tánaiste and Minister for Foreign Affairs and Trade if his Department has given any consideration to the use of telephony switchboard services that are shared with another Government Department or another public body in order to reduce costs and increase call handling capacity; and if he will make a statement on the matter. [14515/13]
Amharc ar fhreagraI propose to take Questions Nos. 63 to 65, inclusive, together.
Aware of the potential cost to customers, my Department has removed LoCall numbers from websites and new printed documentation as part of an overall policy to phase out this service; this policy is in place since early 2012. My Department has considered integrated voice response but does not consider it appropriate for its particular needs. Customer service lines include menu-based options from which customers can choose the most appropriate option. There are no agencies within the remit of my Department. A review of telephony switchboard services will take place during 2013 and will explore the issues raised by the Deputy. However, this review will need to take account of the diverse nature of telephone calls to my Department from both home and abroad, and the associated requirements for suitable on-site switchboard services to effectively manage these queries.
