Tuesday, 7 Oct 2014

Written Answers Nos. 135-153

Jobseeker's Benefit Applications

Ceisteanna (135)

Derek Keating

Ceist:

135. Deputy Derek Keating asked the Tánaiste and Minister for Social Protection to set out the position on a matter whereby a series of errors were made in determining, responding to, paying and dealing with a claim for jobseeker's benefit in respect of a person (details supplied); and if she will confirm that the two PPS numbers applicable to the person and the contributions made by the person have been properly considered in dealing with the issue. [38075/14]

Freagraí scríofa

Tánaiste and Minister for Social Protection

Due to an administrative error when processing the jobseeker’s benefit claim of the person concerned an overpayment occurred. Clondalkin Local Office will arrange to meet with the person concerned in order to discuss this matter. I can confirm that all contributions paid by the person concerned are linked to her new PPS number and were considered when processing this case.

Rent Supplement Scheme Administration

Ceisteanna (136)

Brendan Smith

Ceist:

136. Deputy Brendan Smith asked the Tánaiste and Minister for Social Protection to outline her views on the issues raised in correspondence (details supplied) regarding rent supplement; and if she will make a statement on the matter. [38113/14]

Freagraí scríofa

Tánaiste and Minister for Social Protection

The purpose of the rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer. There are currently approximately 73,500 rent supplement recipients for which the Government has provided over €344 million for 2014.

Maximum rent limits are generally reviewed every 18 months. The most recent review was completed in June 2013 with revised rent limits introduced on 17 June 2013. Despite pressures on the social protection budget, the last review saw rent limits increase in line with market rents in some areas, including Dublin and Galway, with Dublin limits increasing by a weighted average of 9%.

A review of the maximum rent limits is being undertaken within the Department. This review involves a comprehensive analysis of information from a range of sources including rental tenancies registered with the Private Residential Tenancies Board (PRTB), the Central Statistics Office rental indices, websites advertising rental properties, relevant Departments and Agencies, landlord representative groups and non-Government organisations such as Threshold, Focus Ireland and the Society of St Vincent de Paul. Any changes to social welfare supports can only be considered in a budgetary context.

The current difficulties in the rental market and the difficulties faced by prospective tenants, including those seeking access to rent supplement, is a shortage of supply of suitable properties in areas of high demand. The Government has recently launched its Construction Strategy with the aim of increasing housing supply generally.

I can assure the Deputies that officers administering rent supplement throughout the country have considerable experience in dealing with customers and make every effort to ensure that their accommodation needs are met. Discretionary powers are available to staff to award a supplement for rental purposes in exceptional cases where it appears that the circumstances of the case so warrant. A notice reminding staff of their statutory discretionary power to award a supplement for rental purposes in exceptional cases, for example, when dealing with applicants who are at risk of losing their tenancy was circulated in July 2014.

In view of the current supply difficulties, the Department has agreed a protocol with the Dublin local authorities and voluntary organisations so that families on rent supplement who are at risk of losing their accommodation can have more timely and appropriate interventions made on their behalf. Since the launch of this initiative in mid-June 2014, over 130 families have had their rent supplement claims revised by the Department.

The Department’s strategic policy direction is to transfer responsibility for recipients of rent supplement with a long-term housing need to local authorities under the Housing Assistance Payment (HAP). Officials are working closely with those in the lead Department of Environment, Community and Local Government, in introducing HAP on a phased basis, in the selected local authorities.

Social Welfare Appeals

Ceisteanna (137)

Michael Healy-Rae

Ceist:

137. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Social Protection if moneys owed in respect of persons (details supplied) in County Kerry will be waived due to financial circumstances; and if she will make a statement on the matter. [38132/14]

Freagraí scríofa

Tánaiste and Minister for Social Protection

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was referred to an Appeals Officer on 19 August 2014, who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral hearing.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

Social Welfare Benefits

Ceisteanna (138)

Joe Higgins

Ceist:

138. Deputy Joe Higgins asked the Tánaiste and Minister for Social Protection to set out the measures in place to financially assist undergraduate and postgraduate students with children; the measures she will implement to give assistance to such students where existing payments and assistance are insufficient to allow for continuation in study; and if she will make a statement on the matter. [38153/14]

Freagraí scríofa

Tánaiste and Minister for Social Protection

The Department has a range of training and education schemes available to assist jobseekers in their efforts to return to employment. Whereas the Department of Education and Skills has the lead role in supporting students, this Department focuses resources on supporting jobseekers to the return to work by upskilling. The Back to Education Allowance (BTEA) provides an approved jobseeker with the cash equivalent of their prior rate of social welfare payment while they are participating in full-time education. Jobseekers under 26 year olds on an age-related jobseeker’s payment receive an increased weekly rate of €160 subject to means. Given the nature of BTEA, the Department has no plans to extend payments beyond income support or to compensate for other individual costs arising from pursuing full-time education.

The Supplementary Welfare Allowance (SWA) scheme can provide immediate and flexible assistance for those in need subject to certain terms and conditions. A person in full-time education is not usually considered eligible for SWA, save where exceptional circumstances arise in the form of a single payment to help meet essential, once-off, exceptional expenditure, which a person could not reasonably be expected to meet out of their weekly income.

A recent measure introduced along with Minister for Children and Youth Affairs, is the joint After-School Child Care initiative launched between both of the Departments. It is targeted to support those who engage in activation processes and who enter into training or employment. The scheme builds on the existing supports provided by the Department of Children and Youth Affairs in the child care sector through which child care is provided to some 40,000 children of low-income parents at reduced rates. These include the Community Childcare Subvention (CCS) and the Childcare Education and Training Support (CETS) schemes.

People seeking assistance or wishing to establish eligibility for this range of supports should contact their local DSP Intreo Centre or local office. Further information is available on the Department’s website (www.welfare.ie).

Employment Support Services

Ceisteanna (139, 144)

James Bannon

Ceist:

139. Deputy James Bannon asked the Tánaiste and Minister for Social Protection to set out her plans to review the claim of widespread use of the JobBridge activation measure to fill essential posts in the education system; and if she will make a statement on the matter. [38201/14]

Seán Kyne

Ceist:

144. Deputy Seán Kyne asked the Tánaiste and Minister for Social Protection if figures are available on the number of persons progressing from JobBridge into employment; if figures are available on the number of JobBridge places which become full or part-time jobs for the person when the placement concludes; and if she will make a statement on the matter. [38275/14]

Freagraí scríofa

Tánaiste and Minister for Social Protection

I propose to take Questions Nos. 139 and 144 together.

Internship opportunities are advertised by host organisations, including schools, at their discretion. When advertising internship opportunities host organisations undertake to comply with the stringent criteria that the Department applies for the protection of the intern and the integrity of the JobBridge scheme. In addition to these requirements, host organisations must be mindful of and comply with the requirements within their own Sector or governing authority. The Department has ongoing liaison with the Department of Education and Skills regarding the operation of JobBridge in the Education Sector.

As at 3rd October, 2014, 27,202 internships had been completed, including those who undertook a second or third internship. Independent research shows that circa 60% of interns secure employment within 5 months of completing in internship. The Department does not keep records on which of these went into full time or part-time jobs.

Social Welfare Benefits

Ceisteanna (140)

Sean Fleming

Ceist:

140. Deputy Sean Fleming asked the Tánaiste and Minister for Social Protection to set out the cost of restoring the telephone allowance at the 2013 level; and if she will make a statement on the matter. [38264/14]

Freagraí scríofa

Tánaiste and Minister for Social Protection

Maintaining the rate of the State pension and other core payments is critical in protecting people from poverty. Expenditure on pensions at approximately €6.5 billion is the largest element of expenditure in the Department in the Estimate for 2014, representing approximately 33% of overall expenditure. Due to demographic changes the Department’s spending on older people is increasing year on year.

The overall concern of the Government in Budget 2014, and previous Budgets, was to protect the primary social welfare rates. In 2013, the Department had to make provision for an additional €190 million for the increasing number of pensioners. The decision to discontinue the telephone allowance provided significant annual savings and meant that the Department was able to retain other elements of the household benefits package such as the electricity and gas allowance and the television licence. These are valuable supports for recipients. The Department will spend €230 million this year on these elements of the household benefits package for over 411,000 customers.

The cost of restoring the telephone allowance at 2013 levels would be approximately €48 million annually.

Living Alone Allowance

Ceisteanna (141)

Sean Fleming

Ceist:

141. Deputy Sean Fleming asked the Tánaiste and Minister for Social Protection to detail the cost per €1 increase in the living alone allowance; and if she will make a statement on the matter. [38265/14]

Freagraí scríofa

Tánaiste and Minister for Social Protection

The Living Alone Allowance (LAA) is an additional payment of €7.70 per week made to people aged 66 years or over who are in receipt of certain social welfare payments, including State pensions, and who are living alone. It is also available to people who are less than 66 years of age, living alone and in receipt of disability allowance, invalidity pension, incapacity supplement or blind pension. Each €1 increase in the living alone allowance would cost €9.6 million in a full year.

The appropriate levels of weekly social welfare rates of payment, including any increases payable such as the living alone allowance, is being considered in the context of the forthcoming Budget which will be announced on Tuesday, October 14.

Jobseeker's Allowance Eligibility

Ceisteanna (142, 143)

Sean Fleming

Ceist:

142. Deputy Sean Fleming asked the Tánaiste and Minister for Social Protection to set out the cost of allowing long-term unemployed persons who return to the workforce to retain the qualified child increase payment for a period of one year after they take up employment; and if she will make a statement on the matter. [38266/14]

Sean Fleming

Ceist:

143. Deputy Sean Fleming asked the Tánaiste and Minister for Social Protection to set out the cost of providing long-term unemployed persons who return to the workforce with the option to retain an additional payment of €50 per week for a period of one year after they take up employment; and if she will make a statement on the matter. [38267/14]

Freagraí scríofa

Tánaiste and Minister for Social Protection

I propose to take Questions Nos. 142 and 143 together.

The estimated full year cost of allowing persons in receipt of jobseeker’s allowance for excess 312 days (1 year) to retain increases in respect of qualified children for a period of one year after they exit the scheme to employment is some €22m.

The estimated full year cost of a scheme of support, payable at a rate of €50 per week for one year, to persons who have exited jobseeker’s allowance to employment, following receipt for over 312 days, is some €104m.

Question No. 144 answered with Question No. 139.

State Bodies Data

Ceisteanna (145)

Robert Dowds

Ceist:

145. Deputy Robert Dowds asked the Tánaiste and Minister for Social Protection if she will provide information on the number of state agencies or organisations under the remit of her Department which are paid-up members of IBEC; the names of each agency or organisation; the amount which each agency or organisation paid to IBEC in the years 2011 to 2013, inclusive, and to date in 2014; and if she will make a statement on the matter. [38730/14]

Freagraí scríofa

Tánaiste and Minister for Social Protection

The statutory bodies operating under the aegis of the Department of Social Protection are the Citizens Information Board, the Pensions Authority, the Office of the Pensions Ombudsman and the Social Welfare Tribunal.

None of the bodies under the aegis of the Department are paid up members of IBEC.

Citizens Information Board (CIB)

In 2011, CIB made payments to IBEC amounting to €61,184 which included €31,414 in respect of two years (2011 and 2012) annual subscription for membership for one of its service delivery partner companies; Money Advice and Budgeting Service National Development Limited (MABS ndl). The remaining payments were in respect of support services provided, under contract, to CIB’s other service delivery partners –Citizens Advice Services, Citizens Information Phone Services and National Advocacy Services which amounted to €27,857, with the balance (€1,913) in respect of miscellaneous services.

In 2012, CIB made payments to IBEC amounting to €20,439. This comprised a figure of €14,092 in respect of the extension of contract for support services as detailed above, €3,667 in respect of a membership fee for CIB staff and €2,680 in respect of staff training.

No payments have been made by CIB to IBEC since 2012.

The Pensions Authority

The Authority did not pay any money to IBEC in 2011. In 2012, it paid €190 in respect of training. In 2013, it paid €5,806 (€3,100 for training and €2,706 in respect of an information stand at the annual Small Firms Association Annual Conference). In 2014, it paid €2,706 in respect of an information stand at the annual Small Firms Association Annual Conference.

The Office of the Pensions Ombudsman

The Office of the Pensions Ombudsman has not paid any amounts to IBEC in the years 2011, 2012, 2013 and to date in 2014.

Social Welfare Tribunal

Two members of the board of the Tribunal are members of IBEC. Legislation provides that two of the four ordinary member of the Tribunal are appointed by the Minister on the recommendation of IBEC.

No money was paid to IBEC in the years 2011, 2012, 2013 or 2014 for these members to sit on the Social Welfare Tribunal board. Members are paid expenses for hearings or meetings of the Tribunal.

Banking Sector Regulation

Ceisteanna (146)

Maureen O'Sullivan

Ceist:

146. Deputy Maureen O'Sullivan asked the Minister for Finance in view of the fact that a bank (details supplied) has terminated banking services to the Ireland Cuba support group, an entirely Irish-owned and operated membership organisation adhering strictly to law here in all its operations, as a result of US banking regulations administered by the US Office of Foreign Assets Control, the actions he will take in accordance with Irish and European laws which prohibit the extra-territorial application of US law in respect of the illegal US blockade of Cuba. [37913/14]

Freagraí scríofa

Minister for Finance

The Deputy might be aware that I have responded to a number of recent Parliamentary Questions on  this same topic and, for the benefit of the Deputy I repeat my answer as follows:

I have no direct function in the relationship between banks and their customers.  I have no statutory function in relation to banking decisions made by individual lending institutions at any particular time as these decisions are taken by the Board and Management of the relevant institution. A Relationship Framework has been specified that defines the nature of the relation ship between the Minister for Finance and each bank. These Frameworks were published on 30 March 2012 and can be found at: http://banking.finance.gov.ie/presentations-and-latest-documents/.

Notwithstanding this, officials in my Department have referred the issue to Bank of Ireland and have received the following comment in this regard:

"The US Government has a restrictive trade embargo against Cuba. The US legislative and regulatory measures include an embargo on making or receiving payments from Cuba and/or facilitating the making or receiving of payments from Cuba.

Bank of Ireland depends on correspondent banks for the processing of our national, European and international transactions, including our SEPA (Single European Payment Area) transactions. We are reliant on our correspondent banks because they process and facilitate all such transactions on our behalf. The current issue has arisen as a result of the transition to SEPA. As it happens, our principal correspondent bank for SEPA transactions is a leading US bank who must comply with its own regulatory requirements and obligations to avoid a possible exposure to regulatory sanctions and penalties.

As a result, we are not in a position to process such transactions. This affects all international payments to or from Cuba and also any related SEPA payments."

I have also been asked previously if I, as Minister for Finance, would challenge relevant U.S. policy. My response, which has not changed, is to highlight that US policy in this regard is not restricted to Ireland and extends worldwide and accordingly I do not intend to challenge this policy as I would not expect a positive outcome to such an action.

Excise Duties

Ceisteanna (147)

Dara Calleary

Ceist:

147. Deputy Dara Calleary asked the Minister for Finance to detail his plans to reverse the hostile alcohol tax environment that has cost jobs in the drinks industry throughout Ireland and to indicate whether it would be an important signal of support from Government to Ireland's vital small and medium-sized enterprise sector; and if he will make a statement on the matter. [38198/14]

Freagraí scríofa

Minister for Finance

As the Deputy is aware, it is not my practice to comment on what measures may or may not be introduced in advance of the Budget.

Fuel Laundering

Ceisteanna (148)

James Bannon

Ceist:

148. Deputy James Bannon asked the Minister for Finance to set down the timeframe for his Department to carry out random checks to monitor the standard of petrol and diesel being sold at various outlets throughout the country; and if it has been brought to his attention that an increasing numbers of car owners are encountering serious problems with their vehicle engines. [38301/14]

Freagraí scríofa

Minister for Finance

I am advised by the Revenue Commissioners, who are responsible for tackling fuel fraud, that they are very aware of the risks posed to consumers' vehicles, legitimate businesses and the exchequer by all forms of such fraud. Revenue has made great progress in tackling the problem of diesel laundering over the past three years, and reports now indicate the emergence of another form of fuel fraud, commonly referred to as petrol stretching. This involves the illegal addition of a low tax commodity to petrol to defraud the exchequer and the motorist.

Petrol stretching is an offence under section 102 (IA) of the Finance Act 1999. It carries a penalty on summary conviction of a fine of €5,000 or a term of imprisonment not exceeding 12 months, or both a fine and imprisonment. Where conviction occurs on indictment, a fine of up to €126,970, or a term of imprisonment of up to 5 years, or both a fine and imprisonment, may be imposed.

I am advised by Revenue that they are investigating the recent reports concerning petrol stretching and that they have been in contact with the motor and oil trades. I understand also that they have taken samples from a number of filling stations  that it has been claimed may have been sources of adulterated fuel, and that they will undertake any further enquiries that are required as a result of reports or information that they receive. These enquiries will seek to establish if there is evidence that petrol stretching has occurred, and whether there is evidence to support a prosecution.

Revenue and the oil sector have cooperated very successfully to tackle diesel laundering and I am confident that, with this cooperation and with the supply chain information available to Revenue, the problem of petrol stretching can also be tackled successfully. It is essential that petrol distributors report any reduction in the pattern of legitimate supplies of fuel to the retail trade which may indicate that specific retailers are shifting some of their sourcing to laundered or "stretched" fuel.

Motorists themselves should take care about where they source their petrol from, and report to Revenue any suspicions concerning the source of adulterated petrol that may have damaged their engines. Revenue will investigate such reports and pursue prosecutions where possible. In that regard, Revenue has recently launched a dedicated section of its website specifically on the black economy and this includes an electronic reporting facility for anyone who has information about shadow economy practices such as petrol stretching.

Excise Duties Yield

Ceisteanna (149)

Michael McCarthy

Ceist:

149. Deputy Michael McCarthy asked the Minister for Finance to outline his views on correspondence (details supplied) regarding excise duty on alcohol; and if he will make a statement on the matter. [37678/14]

Freagraí scríofa

Minister for Finance

The correspondence attached to the Deputy's question makes a number of points in relation to excise duty increases in Budgets 2013 and 2014.  The correspondence also refers to the incentive for cross-border shopping and the risks to tourism resulting from increases in excise on alcohol.

The increases to excise duty on alcohol in Budgets 2013 and 2014 must be seen firstly in the context of the Government's need to raise revenue to provide services.  Secondly, these increases should not be viewed in isolation but together with the history of excise rates on alcohol in Ireland.  To this end I would remind the Deputy that excise duties on alcohol were reduced significantly in Budget 2010 and also that the rate of duty on spirits and beer remained largely unchanged between 2002 and 2009.  It should also be noted that the excise, as a proportion of the pint, is lower now in 2014 than it was 10 years ago.

In relation to the points raised about tourism, I would point out that in July 2011 I introduced a 9% reduced VAT rate for tourism related services as part of the Government Jobs Initiative. The measure was designed to boost tourism and create additional jobs in that sector. The 9% rate applies to the supply of food and drink (excluding alcohol, soft drinks and bottled water) in the course of catering.  I also provided for the abolition of the Air Travel Tax in Budget 2014 to further assist the tourism sector.

In relation to cross-border shopping, the most recent cross-border price survey carried out by the Revenue Commissioners in July 2014 can be found online on the Revenue website. The survey compares prices in the off-trade rather than the on-trade, and does not support the contention of the correspondence in question that a price difference of 35% in respect of beer, wine and spirits exists between prices in Northern Ireland and the State.

Pension Levy

Ceisteanna (150, 151, 167, 202)

John O'Mahony

Ceist:

150. Deputy John O'Mahony asked the Minister for Finance to set out his views on making those with a pension fund of less than €300,000 a year, which would have an approximate payment of €12,000 a year, similar to the non-contributory pension rate, exempt from paying the pension levy; and if he will make a statement on the matter. [37694/14]

Terence Flanagan

Ceist:

151. Deputy Terence Flanagan asked the Minister for Finance to detail the amount collected in 2014 from pension levy returns now that the deadline has passed for returns; the amount that is expected to be collected in 2015; and if he will make a statement on the matter. [37775/14]

Olivia Mitchell

Ceist:

167. Deputy Olivia Mitchell asked the Minister for Finance in view of the €2 billion collected for the State from private pension savings of a relatively small number of persons if he will reverse the decision to extend the levy into 2015 in view of the huge impact it is having on the retirement income of older contributors; and if he will make a statement on the matter. [37953/14]

Mary Mitchell O'Connor

Ceist:

202. Deputy Mary Mitchell O'Connor asked the Minister for Finance to set out his plans for reviewing and ultimately abolishing the 0.6% pensions levy per annum on certain private pension funds as part of budget 2015, introduced under the Finance (No. 2) Act 2011 and set to apply for a four-year period from 2011 to 2014, inclusive; and if he will make a statement on the matter. [38299/14]

Freagraí scríofa

Minister for Finance

I propose to take Questions Nos. 150, 151, 167 and 202 together.

I announced in my Budget 2014 speech that the 0.6% Pension Fund Levy introduced to fund the Jobs Initiative in 2011 will be abolished from the 31st of December 2014. I have however, introduced an additional levy on pension funds at 0.15% to, among other things, continue to help fund the Jobs Initiative. The additional levy, within the existing legal framework, applies to pension fund assets in 2014 and 2015.

There are two exceptions to the requirement to pay the levy provided for in the governing legislation (section 125B of the Stamp Duties Consolidation Act 1999).

The first exception provides that the levy will not apply to the assets of occupational pension schemes in respect of employees whose employment is, or was, wholly exercised outside the State. In other words, the levy does not apply to the extent that a pension scheme is intended to provide retirement benefits to scheme members employed outside the State.

The second exception provides that the levy will not apply where the trustees of a scheme have passed a resolution to wind-up the scheme and where the business in respect of which the scheme was established is insolvent in accordance with the Protection of Employees (Employers' Insolvency) Act 1984.

The fact that there are very limited situations where the levy does not have to be paid explains, in part at least, why it was possible to introduce it at a relatively low rate of 0.6% in the first place and to have a rate of additional levy as low as 0.15% for the years 2014 and 2015. Making an exception for pension funds with a value of less than €300,000 will inevitably give rise to demands for exceptions to be granted in other situations that would be viewed by those seeking them as being equally deserving.  The inevitable result of this course of action would be a narrowing of the levy base which would result in a greater imposition on the non-exempt schemes and I am not prepared to go down that road.

I am informed by the Revenue Commissioners that receipts to date in 2014 from the Stamp Duty levy on pension fund assets, introduced in the Finance (No. 2) Act 2011, amount to €697 million. The Deputy may wish to note that this includes an estimate of payments that have not yet been fully processed as a result of increased payment processing times due to the impact of SEPA in 2014. A finalised figure should be available later in the month.

The yield from the pension fund levy at the reduced rate of 0.15% in 2015 is estimated at €135 million.

Preparations for Budget 2015 and the consequent Finance Bill are ongoing. It would not be appropriate for me to comment on what changes, if any, are being considered in the pension fund levy or any other tax measure.

Excise Duties

Ceisteanna (152)

Terence Flanagan

Ceist:

152. Deputy Terence Flanagan asked the Minister for Finance if excise duty will be reduced in budget 2015 to protect tourism and small and medium enterprises (details supplied); and if he will make a statement on the matter. [37776/14]

Freagraí scríofa

Minister for Finance

It is not my practice to comment on what measures may or may not be introduced in advance of the Budget.

Insurance Compensation Fund

Ceisteanna (153)

Pearse Doherty

Ceist:

153. Deputy Pearse Doherty asked the Minister for Finance to detail the balance of the Insurance Compensation Fund. [37798/14]

Freagraí scríofa

Minister for Finance

The Insurance Compensation Fund is maintained and administered by the President of the High Court acting through the Accountant of the Courts of Justice. The Office of the Accountant has advised me that the current balance of the ICF is €65,906,834.84.