Written Answers Nos. 74-80
74. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the details of the land that was sold at Navan Road Cabra for €1,702,800.73, the proceeds of which were received by the State recently, the use to which these proceeds will be applied and what was the former use of these lands; and if he will make a statement on the matter. [18152/14]
Amharc ar fhreagraThe Commissioners of Public Works sold 0.69 acres of a site on the Navan Road to Tesco Ireland Ltd. for €1,702,800.73 inclusive of VAT.
This site was part of the Department of Social Protection local office and was surplus to their requirements.
The proceeds from the sale of the site were paid over in full as an Extra Exchequer Receipt to the Department of Public Expenditure and Reform. As agreed with the Department 50% of proceeds will be retained by the Exchequer and 50% will be provided to the 2015 OPW capital programme.
75. Deputy Maureen O'Sullivan asked the Minister for Public Expenditure and Reform the reasons section 16 of the Freedom of Information Act 1997, which requires public bodies to publish and make available the criteria they use for making decisions, has been excluded in the current Freedom of Information Bill 2013 and replaced by section 8; if his attention has been drawn to transparency issues in section 8 of the new Bill with regards to the publication schemes which seek to replace the original Act's section 16, giving power to public bodies to decide themselves what information will be made public and in addition granting power to him to decide what information is made public and to revise such information as he sees fit; his views on whether the new Bill will enhance arbitrary decision-making as opposed to transparent decision-making; and if he will make a statement on the matter. [18166/14]
Amharc ar fhreagraThe reform of Freedom of Information legislation is central to the Government's goal of enhancing public governance through a significant strengthening of openness, transparency and accountability of government and public administration. In that regard, the Deputy may wish to note the speech I delivered at a Public Affairs Ireland Conference earlier this month on this objective which is available at www.per.gov.ie/speeches.
In response to the Deputy's questions about Section 8 of the Freedom of Information Bill, I can confirm that Section 8 replaces Sections 15 and 16 of the existing 1997 Act and provides that each public body will publish a publication scheme instead of the Section 15 and 16 manuals. Given technological and ICT developments in the 16 years since FOI was first introduced, the migration of such information to websites, these manuals are not considered an effective way of promoting the proactive publication of information into the public domain. Publication schemes are regarded as good practice in FOI in other jurisdictions as a means of disseminating information relating to functions and activities of public bodies.
Under the new Bill when enacted, FOI bodies will be required to prepare and publish a publication scheme in accordance with either a model publication scheme or in accordance with guidelines to be made or revised by me as Minister, as a uniform approach would not necessarily be appropriate for Departments and agencies. Furthermore, as can been seen from Section 8(7) of the Bill (as approved by the relevant Dáil Committee), the model schemes and guidelines can only be made following consultation with the Information Commissioner and such other Minister as may be appropriate. I would also point out that Section 8 of the Bill provides that the information contained in the publication scheme will be reviewed at least on an annual basis and that, in the case of a person unable to access a website and who requests details of the nature of records held by a public body, details will be provided in written form.
The publication schemes is intended to facilitate much more proactive publication of information by public bodies. Greater publication of official data and information is also consistent with the Government's commitment to participate in the multilateral Open Government Partnership. In addition, as the Deputy will be aware, a review of FOI was carried out last year which resulted in the drawing up of a draft Code of Practice on the implementation of the FOI Act. While the model publication schemes or guidelines to be made by me are being developed, the draft Code will include general guidelines for public bodies on the appropriate content for publication schemes including provision for the publication of extensive information on:
- the nature, role, responsibilities and activities of public bodies including the structure;
- strategy and policy for delivering functions and services; classes of records held (e.g. publications, legislation, consultation procedures/processes, Ministerial speeches and press releases Circulars/guidance/procedures/rules for the purposes of decisions, determinations or recommendations, under or for the purposes of any enactment or scheme implemented (e.g. involving grants) with respect to rights, obligations, sanctions etc. to which the public is or may be entitled; or services provided including how such services may be accessed;
- details of expenditures over an agreed threshold;
- information about how goods and services are procured;
- information that is sought on a regular basis that would not be exempt under FOI;
- any rights of review or appeal in respect of decisions made by the body;
- contact points and locations.
I would like to assure the Deputy that one of the important aims of both the Bill and the Code of Practice is to improve the consistency and standardisation of approach by public bodies in responding to FOI requests and ensure they are dealt with as efficiently as possible.
76. Deputy Maureen O'Sullivan asked the Minister for Public Expenditure and Reform if he will publish the code of practice and guidelines as cited by him, in relation to the Freedom of Information Bill 2013 which have still not been published nine months after the publication of the Bill; and if he will make a statement on the matter. [18167/14]
Amharc ar fhreagraI intend to submit the draft Code of Practice to Government shortly with a view to publication for public consultation. My intention is that the Code of Practice will come into effect on enactment of the FOI Bill. Clearly it has been and will continue to be necessary for the draft Code to be amended to reflect any amendments that are made to the Bill as it progresses through the Oireachtas.
77. Deputy Regina Doherty asked the Minister for Jobs, Enterprise and Innovation if he will ask the Competition Authority to carry out a sectoral investigation into the pensions industry; and if he will make a statement on the matter. [18097/14]
Amharc ar fhreagraThe Competition Authority is the statutory independent body responsible for the enforcement of domestic and EU competition law in the State. Section 29(3) of the Competition Act 2002 provides that the Authority is independent in the performance of its functions, including carrying out investigations of anti-competitive practices. As investigations and enforcement matters generally are part of the day-to-day operational work of the Authority, I, as Minister for Jobs, Enterprise and Innovation, have no direct function in the matter.
However, if the Deputy is using the term "investigations" in the broader sense of a study on a sector, Action 93 of the Action Plan for Jobs 2014 is about the identification of any sheltered areas of the economy where competition is restricted, with the intent to undertake analyses or studies in such areas where appropriate. I am aware the Competition Authority is already considering whether a study on pensions industry is warranted but that it is too early to indicate whether it will be chosen over other sectors. Should the Deputy have any information on the pensions industry that would assist in their consideration, the Deputy may wish to provide the Competition Authority with it.
78. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation in relation to lands and property assets held by development companies for liquidation, and where developments are not completed to the planning permission, if the assets transfer to protected creditors, a Government Department, the State Solicitor or any other agency; if any proceeds are made available to complete public services in incomplete housing developments, debts to the Revenue Commissioners, lenders or other creditors in such cases; and if he will make a statement on the matter. [18124/14]
Amharc ar fhreagraThe Companies Acts set out the provisions applicable to the winding up and liquidation of companies established under those Acts. The Acts do not prescribe any special rules for the liquidation of property development companies.
It is the duty of a liquidator to take possession of corporate assets and to protect those assets, and also to realise or liquidate the assets so as to enable the proceeds to be distributed in accordance with law. If the assets are not sufficient to pay all the creditors, the general rule is that, subject to the provisions applicable to preferential creditors, the creditors of an insolvent company are to be paid pari passu from the assets i.e. in proportion to their debts. Section 285 of the Companies Act 1963 sets out the preferential creditors who must be paid in priority to other creditors. These would include the Revenue Commissioners and certain employee entitlements.
In the liquidation of an insolvent company a secured creditor who holds a fixed charge is entitled to realise or otherwise deal with his or her security outside the winding up. If there is a surplus after his or her debt has been paid from the realisation of the security, he or she must contribute such surplus to the liquidator.
My Department has no role in relation to the completion of public services in unfinished housing developments.
79. Deputy Regina Doherty asked the Minister for Social Protection the legal penalties that will be imposed on the trustees of a scheme which enters in a double insolvency event; and if those penalties have ever been imposed; and if she will make a statement on the matter. [18092/14]
Amharc ar fhreagra80. Deputy Regina Doherty asked the Minister for Social Protection if she will introduce a statutory limit on the amount of fees that a pension fund can charge as is proposed in the UK; and if she will make a statement on the matter. [18096/14]
Amharc ar fhreagra82. Deputy Regina Doherty asked the Minister for Social Protection the reason the pension levy was chosen as the source of funds to deal with a double insolvency event in a defined benefit scheme; and the reason she did not introduce a specific levy on defined benefit schemes; and if she will make a statement on the matter. [18091/14]
Amharc ar fhreagra83. Deputy Regina Doherty asked the Minister for Social Protection if she will introduce legislation requiring the full disclosure in a transparent fashion by pension companies of all charges related to the administration of a defined contribution pension schemes; and if she will make a statement on the matter. [18093/14]
Amharc ar fhreagraI propose to take Questions Nos. 79, 80, 82 and 83 together.
The pension levy which was introduced by the Minister for Finance to fund the Jobs Initiative in 2011 will be abolished from the 31st of December 2014. An additional levy on pension funds at 0.15% will apply to pension fund assets in 2014 and 2015. This additional levy will continue to help fund the Jobs Initiative, including the continuation of the reduced 9% VAT rate in the hospitality sector and to make provision for potential State liabilities which may emerge from pre-existing or future pension fund difficulties.
The revenues arising to the Exchequer from the levy are, in common with Exchequer revenues generally, not hypothecated to any particular item of expenditure or liability but have been used to help fund the various measures introduced by the Jobs Initiative.
In relation to DB schemes and double insolvencies, agreement has been secured for certain liabilities to be met by the Exchequer, where they arise. However, it must be stressed that I am not aware of any double insolvencies 'in the pipeline'. I see this as providing an insurance and it is not expected that there will be a significant draw on contingency funds available. Rather, the regulatory measures now in place are intended to move underfunded schemes towards an appropriate funding position and further minimise the risk of a requirement to utilise funds raised through the pension levy. The legislation which I introduced late last year to provide funding in the event of a double insolvency does not provide for the imposition of penalties on the trustees of a scheme in the event of a double insolvency.
You will be aware that I published a 'Report on Pensions Charges' in October 2012. This is the first comprehensive Government report on this subject. The purpose of the report was to gather information on the level of pension charges levied to assess whether charges are reasonable and transparent, to report on the findings and make recommendations. The report highlights a wide range of issues in relation to pension charges and identifies a number of serious problems. While the provision of pension schemes cannot be cost free, it is clear that there are major challenges to be addressed in the two main areas of reasonableness and transparency of charges.
A Pension Charges Working Group is in place to initiate actions that follow up on the recommendations of the report. This group comprises the Department of Social Protection, the Pensions Board and the Central Bank. Each has a core role to play in delivering on the recommendations contained in the 'Report on Pension Charges' and work is progressing in this regard. Improvements in disclosure requirements, including those for pensions, were introduced in the Central Bank’s 2012 Consumer Protection Code and these should enhance transparency for those consumers covered by the Code. There are also various ongoing developments at EU level which should lead to stronger consumer protection over time.
The imposition of a statutory limit on the amount of fees that a pension fund can charge was not recommended in the report. The focus of the recommendations is on measures which would increase consumer understanding and provide a better result for the consumer. The view is that, in principle, it is not good practice to interfere in the price fixing mechanisms of the market, particularly since this could result in unintended consequences which may impact on competition. However, this will be kept under review with further consideration being given to more stringent options in the future.
Developments in broader pensions policy needs to be taken into account addressing the issues of pension charges, given that the research clearly identifies the importance of economies of scale in driving down charges. The proposed introduction of an auto-enrolment pension scheme for all employees may be the most effective way to introduce change and could have a major impact in reducing charges, particularly for those people with small pension funds and reduced pension expectations. International experience has shown that this type of scheme is extremely successful in providing a simplified and lower cost charging structure and a consistent application across employer.
Last month I announced key appointments to the Pensions Authority and Pensions Council. These new bodies will strengthen governance of occupational pensions and give consumers greater input into pension provision. Under the strengthened arrangements, the Pensions Board was renamed the Pensions Authority to better reflect its key role of safeguarding the pensions of occupational pension scheme members and also the provision of information on occupational pensions. The changes will ensure the system has a far stronger consumer focus, with the Pensions Council there to represent and protect the consumer. As its first task, I will be asking the Council to monitor the implementation of the recommendations in the Report on Pension Charges to tackle excessive fees, and advise me if further actions are needed.
