Written Answers Nos. 89 - 101
89. Deputy Michael McGrath asked the Minister for Finance his views on comments by the Governor of the Central Bank of Ireland, Mr. Patrick Honohan, that Irish banks remain too risk averse; his plans, in policy terms, to encourage greater competition in the banking sector; and if he will make a statement on the matter. [39985/15]
Amharc ar fhreagraI assume the Deputy is referring to the comments made by Governor Honohan at the Small Firms Association annual lunch on 6 November last in the context of SME lending. In relation to the question of banks being risk averse, I would draw the Deputy's attention to the recently published Department of Finance SME Credit Demand Survey April - September 2015 (http://www.finance.gov.ie/sites/default/files/Dept%20of%20Finance%20SME%20Credit%20Demand%20Survey%20Report%20-%20Apr-Sep%202015_0.pdf). A total of 1,500 telephone interviews were conducted with a random sample of Irish micro, small and medium SMEs. The survey shows that, when pending applications are excluded, 85% of credit applications to banks were approved or partially approved.
In addition, both AIB and Bank of Ireland have increased new lending significantly year on year. Bank of Ireland recently announced new credit approvals for Irish businesses to the end of September 2015 of €3.6 billion, up c.13% on the same period last year. Permanent TSB have also recently commenced lending to SMEs. The Credit Review Office (CRO) continues to review loan applications which have been rejected by the banks and is overturning 55% of appeals. I would encourage any SME who has had a credit application declined to avail of the services of the CRO (http://www.creditreview.ie/).
In relation to encouraging greater competition in the banking sector, the Strategic Banking Corporation of Ireland's (SBCI) mandate and objectives include the fostering and driving of competition in SME lending through the provision of low cost long term funding to both banks and non-bank providers of credit to SMEs. In doing so, it seeks to facilitate the growth of smaller participants and the entry of new market participants by providing them with the low cost liquidity that will enable them to compete with the larger banks. SBCI funding is offered on substantially the same terms and the same price to all SME credit providers that are credible, credit worthy, can meet its operational requirements and pass on the benefit of the lower cost funding to their SME clients. This creates a new forum for competition in the use of SBCI funding between banks and non-banks and enables emerging and newly entering SME credit platforms to grow their businesses. Over 3,200 Irish SMEs benefited from SBCI loans in the SBCI's first seven months in operation (March to September 2015), borrowing €110 million in total through AIB and Bank of Ireland.
More recently, the SBCI has announced its support for two strong emerging non-bank providers of credit to SMEs with a €50 million facility now up and running with Finance Ireland, a provider of leasing and hire purchase financing for vehicles and equipment and a €25 million facility with Merrion Fleet, which provides vehicles and fleet management services to SMEs at a lower cost. Furthermore the SBCI has a pipeline of new SME credit providers that it intends to bring to the market over the next six months and beyond, which will further enhance competition and support new types of finance in the market. Further details of the SBCI's current supported products and where they may be accessed are available on its website (http://sbci.gov.ie/).
The counter-guarantee amendments being brought forward by the Department of Jobs, Enterprise and Innovation to the Credit Guarantee Amendment Bill (2015) are intended to enable the leveraging of related EU financial instruments in this area, such as the European programme for competitiveness of SMEs, COSME; Horizon 2020 funding earmarked for SMEs; and the European fund for strategic investment, EFSI, administered by the European Investment Bank and European Investment Fund, better known as the Juncker plan. This will allow Ireland to optimise its return from such major EU initiatives.
As regards interest rates charged by the banks to SMEs, the recent CBI publication, "Microfinancial Review 2015:1", states that "the mean rate on SME loans during 2014 was 5 per cent in Ireland, compared to 3.5 per cent in the euro area." However, the report goes on to note that "differences in the underlying lending composition, however, may be a factor here. For example, the data include restructured and renegotiated loans, of which there is likely to be an increasing share in Ireland. Cross-country differences are also likely in terms of loan type and borrower type." It should be noted that in the most recent Department of Finance SME credit demand survey, covering the six month period to September 2015, only 1% of SMEs that did not demand credit thought that it was too expensive to borrow.
Finally, I believe that competition is the best way to achieve a sustainable long term solution to the issue of high mortgage repayments and the Government has undertaken a number of initiatives in order to promote competition in the market. For example, it introduced the changes to Section 149 of the Consumer Credit Act 1995 in the Central Bank (Supervision and Enforcement Act) 2013 for new entrants. This section regulates fees and charges and the changes mean that it does not apply for the first three years of operation of new entrants to the Irish banking sector. It is anticipated that new entrants will enter the mortgage market and bring welcome competition to this sector.
90. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the position regarding flooding at a location (details supplied) in County Kerry, with regard to a drain that needs to be cleaned out by the Office of Public Works; and if he will make a statement on the matter. [39914/15]
Amharc ar fhreagraThe location referred to by the Deputy forms part of the Maine Catchment Drainage Scheme which was carried by the Office of Public Works (OPW) under the Arterial Drainage Act, 1945. The OPW continues to have a statutory responsibility for the maintenance of this scheme.
Works were carried out on this channel in late 2014 to facilitate the strengthening of the adjacent Flood Defence Embankment. Works involved widening the existing channel to source material to strengthen the adjoining Flood Defence following the spring storms of 2014 where this flood defence became breached. As a result of the widening of channel, the storage capacity has been increased, which has a positive effect on the drainage network in the area. OPW will shortly investigate whether the channel requires additional maintenance works.
Over the past 18 months, the OPW resources on the River Maine Catchment have been deployed in repairing, maintaining and improving flood defence assets (including sluice structures). These assets provide protection against flooding to a large number of residences, and suffered extensive damage in the storms of 2014. Work on the defence assets has been prioritised. On completion of this work, OPW will be able to resume its programme of scheduled channel maintenance works.
91. Deputy Tom Fleming asked the Minister for Public Expenditure and Reform his views on correspondence (details supplied) regarding the financial emergency measures in the public interest legislation; if he will implement the proposals requested; and if he will make a statement on the matter. [39870/15]
Amharc ar fhreagraSection 9 of the Financial Emergency Measures in the Public Interest (FEMPI) Act 2009 (No 5 of 2009), allows the Minister for Health to reduce the amount or the rate of payment to be made to health professionals (or classes of health professionals) in respect of any services that they render to or on behalf of a health body. Any reduction is to be effected by the Minister for Health by regulation, with the consent of the Minister for Public Expenditure and Reform. Section 10 of the Act also extends similar powers to any Minister of the Government and such powers have been exercised to reduce the payments in respect of services delivered, for example, by State Solicitors.
This measure, along with the other measures contained in the FEMPI Acts 2009-2013, continues in force and makes a significant contribution to meeting our international fiscal obligations including bringing the general government deficit below 3 per cent of GDP. However, the measures provided under the legislation should only represent those that are critical to the achievement of our fiscal targets.
As was stated in my most recent annual review of those Acts, while any immediate reversal of the reductions would significantly compromise our ongoing progress towards ensuring fiscal stability and meeting our fiscal consolidation targets, the continuation by my colleague, the Minister for Health, of the measures applied to contracted Health Professionals under the Act will have regard to the need to commence the gradual unwinding of the measures, as for other groups affected.
Accordingly, the FEMPI Bill 2015 which is currently before the Oireachtas proposes the amendment of Section 9 of the FEMPI Act 2009 to provide that payments made to certain health professionals may be varied (other than by being reduced) by the Minister for Health with the consent of the Minister for Public Expenditure and Reform. A similar amendment to the same effect is proposed for Section 10.
92. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform if a consultant is now in place for the preparation of the conservation and management plan for Bunadober Mill in the Neale in Ballinrobe in County Mayo; if officials from the Office of Public Works intend to arrange a meeting with the Lough Mask heritage group to discuss these plans for the mill; when such a meeting is likely to take place; and if he will make a statement on the matter. [39910/15]
Amharc ar fhreagraFollowing a recent procurement process, a firm of conservation architects has been appointed to complete a Conservation and Management Plan for the Moran’s Mill site at Bunadober, Ballinrobe, Co. Mayo.
The architects are currently in the research phase for the preparation of the Conservation and Management Plan. Once they have completed this, they will proceed with the direct consultation phase where they will meet with individual stakeholder groups to discuss relevant issues. They have indicated their intention to meet with the Lough Mask Heritage Group in early December.
93. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which his Department has received the information sought by way of correspondence dated 8 September 2015 in the case of a person (details supplied) in County Carlow; and if he will make a statement on the matter. [39941/15]
Amharc ar fhreagraAn application for a General Employment Permit in respect of the person referred to by the Deputy was received in Employment Permits Section on 30th January 2015 and was rejected and returned at pre-check stage on that date as the prescribed form had not been filled in completely and all the required information was not supplied. A further application for a General Employment Permit in respect of this person was received in the Employment Permits Section on 3rd June 2015 and was rejected and returned at pre-check stage on that date as the prescribed form had not been filled in completely and all of the required information was not supplied.
A further application for a General Employment Permit in respect of this person was received in the Employment Permits Section on 8th October 2015. This application was refused on 7th November 2015 for the following reasons:
- The occupation in question is on the List of Ineligible Categories of Employment for Employment Permits.
- The remuneration on offer was less than the minimum annual remuneration specified in regulation 26 of the Employment Permits Regulations.
- The person referred to by the Deputy was in the State without current immigration permission from the Minister for Justice and Equality.
- The manner in which the advertisement had been published did not meet the requirements set out in the Employment Permits Regulations.
The applicant (in this case the employer) has 28 days from date of refusal letter of 7th November 2015 within which to request a Review of this decision.
Employment Permits Section has no record of a letter or application dated 8 September 2015.
94. Deputy Gabrielle McFadden asked the Minister for Jobs, Enterprise and Innovation if the Industrial Development Agency Ireland has specific leads in relation to locating potential clients at the new advance factory in its business and technology park in Garrycastle, County Westmeath; and if he will make a statement on the matter. [39963/15]
Amharc ar fhreagraI am informed by IDA Ireland that it is actively seeking an investment for the new building in Garrycastle, and it is confident of a positive outcome. Property is one of the key considerations for clients when choosing a location, and the availability of such a building in Garrycastle will be an additional positive element in the overall offering of the Midlands. The new advance factory in Garrycastle forms part of the Government’s €250m Regional Action Plan for Jobs. €150m is earmarked for the construction of 12 advance factories and other property infrastructure, which will give regional locations access to modern, turnkey property solutions, which when combined with a strong local talent pool and existing FDI clusters will give these locations an enhanced proposition to offer international investors.
IDA promotes Westmeath as part of the Midlands Region, which also includes Longford, Laois and Offaly. There are 35 multinational companies employing 4,032 within the region. The region is marketed as having a strong cluster in medical technology and life sciences and is home to many key clients, one such example being Covidien in Athlone. The number of people employed in IDA supported companies in Westmeath, has increased by 375 between 2011-2014 (a 19% increase).
A digital marketing campaign is in place to market the Midland Region for potential investors and this is used overseas by IDA Ireland executives, to showcase potential locations within the Midlands Region including Westmeath.
The Regional Action Plan for Jobs initiative was launched in February of this year and aims to identify a range of actions which will help each region to achieve its economic potential. The Action Plan for Jobs: Midland Region was launched on the 29th June. This plan sets out over 120 actions aimed to deliver enhanced employment growth in the region over the coming years with a target of increasing employment in the region by 10-15 % by 2020. The overall ambition of the Action Plan for Jobs – Midland Region is to increase employment by approximately 14,000 by 2020.
Supporting the achievement of this goal a new IDA Regional Business Development Manager was appointed to the Midland Region earlier this year. IDA Ireland continues to actively engage with existing clients in the region to support them in growing their business to retain jobs and expand their existing footprint in the region. In cooperation with Enterprise Ireland, IDA is also engaged in introducing indigenous companies to multinational companies to give them an opportunity to present their offering and increase their ability to win new contracts helping to secure their sustainability.
IDA Ireland also has regular engagement with the Chief Executives of the local authorities of Longford, Westmeath, Laois and Offaly to ensure that there is a continuous line of communication open and a mutually supportive approach taken, considering the role that Local Authorities now have for economic development.
Competition for FDI is intense globally with virtually every country in the world actively seeking new FDI investments. IDA Ireland will continue to actively incentivise and encourage investors to consider a wide range of potential locations in Ireland. The ultimate decision on location, however, rests with the client.
95. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine when a licence will issue to a person (details supplied) in County Donegal; and if he will make a statement on the matter. [39805/15]
Amharc ar fhreagraOfficials in my Department have been in contact with the applicant requesting him to confirm that, as part of his qualification, he completed a Pesticide Application module equivalent to one of the recognised qualifications, i.e.:
- FETAC 5N0731 - Handheld Sprayer;
- FETAC 5N1797 - Boom Sprayer;
- City & Guilds PA1 + PA2a – Boom Sprayer;
- City & Guilds PA1 + PA6 – Handheld Sprayer;
- Teagasc Pesticide Application course (as part of 1-year or 2-year qualification);
- Teagasc Pesticide Application stand-alone short course.
If the qualification was awarded by Teagasc, the applicant can verify the qualification, for the purpose of DAFM registration as a Professional User, by submitting a query form directly to Teagasc and which is available at: http://www.teagasc.ie/training/courses/pesticide-training.asp.
The application will be processed accordingly on receipt of the requested information.
96. Deputy Derek Keating asked the Minister for Agriculture, Food and the Marine the steps that are being taken to confirm the veracity of the allegations impinging on the reputation of the Irish fishing fleet in reports in newspapers of poor employment practices that should not be tolerated, and other measures alleged to circumvent the work permit and migration laws, to remedy the situation; and the action to be taken against the perpetrators, should wrongdoing or criminality be found. [39836/15]
Amharc ar fhreagraThe Government is very concerned about the allegations regarding the treatment of workers on Irish fishing trawlers. Following a decision taken at Cabinet on Tuesday 3rd November, it was decided to immediately establish an inter-departmental Task Force to examine the wide range of issues identified in the recent Guardian newspaper report and make recommendations on appropriate actions, based on a cross Governmental approach. I chaired the first meeting of the Task Force on Thursday 5th November and my colleague Minister of State, Ged Nash, from the Department of Jobs, Employment and Innovation also attended the meeting. Due to the complex nature of the issues arising, the Task Force includes high level representatives from the Departments of, Justice and Equality, Jobs Enterprise & Innovation, Transport, Tourism and Sport, the Attorney General’s office, An Garda Síochána, BIM, the Naval Service, Sea Fisheries Protection Authority and my own Department.
In order to formulate the most appropriate and effective response, it is necessary to first establish a full understanding of the complex issues involved. At the first meeting of the Task Force, the State Authorities shared information on their individual remits and experiences and committed to producing a co-ordinated response. The meeting considered the complex issues arising from the Guardian article and among the key issues also discussed were information sharing, enforcement, permitting, licensing, exploitation, and trafficking.
As Minister with responsibility for chairing this cross Departmental Task Force, my main focus will be, to bring forward to Government a joined up State response in relation to the issues identified. Where appropriate, I consider that we need to take robust and proportionate immediate actions including any medium term changes to the regulatory and enforcement frameworks of the State.
The next meeting has been arranged for today, 12th November and I have invited a number of stakeholders to address the Taskforce.
97. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine if the national reserve (young farmer-new entrants) and young farmers scheme will be available for young farmers to apply for in 2016; and if he will make a statement on the matter. [39837/15]
Amharc ar fhreagraFor 2016 there is no designated funding from the Basic Payment Scheme to fund a National Reserve. The only source of funding available to the 2016 National Reserve will be from any unused funds from the 2015 National Reserve and from clawback arising from the sale of entitlements without land in 2016. Therefore the resource will be limited. It is however expected that the level of demand in 2016 and subsequent years will be significantly less than in 2015 which was the first year of operation of the National Reserve under the Basic Payment Scheme. The EU Regulations governing the operation of the National Reserve set down that the priority for the allocation of entitlements from the National Reserve is given to the two categories of ‘young farmer’ and ‘new entrant to farming’. If there is sufficient funding available to provide a National Reserve in 2016, application forms and terms and conditions governing the scheme will be available in 2016 with a closing date of 15th May 2016. The Young Farmers Scheme is available each year from 2015 to 2019. Eligible young farmers may receive payment from the Young Farmers Scheme for a maximum of five years following the commencement of their agricultural activity. The closing date for receipt of applications under the Young Farmers Scheme in 2016 will be 15th May 2016.
98. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the purpose of the Hortforum; the progress made by it in ensuring that horticulture farmers get adequate prices for their produce to remain viable; and if he will make a statement on the matter. [39845/15]
Amharc ar fhreagra99. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine his plans to examine whether below-cost selling of fruit, vegetables and potatoes increases food wastage; if it does, the steps he will take to ban the practice; and if he will make a statement on the matter. [39846/15]
Amharc ar fhreagra100. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the steps he will take to ensure there is no sale of vegetables, fruit and potatoes at uneconomic prices during Christmas 2015, as happened two years ago; and if he will make a statement on the matter. [39847/15]
Amharc ar fhreagra101. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine the steps he will take to stop the week-to-week price volatility for farmers in the horticulture sector, given the serious impact on farmers; and if he will make a statement on the matter. [39848/15]
Amharc ar fhreagraI propose to take Questions Nos. 98 to 101, inclusive, together.
The legislative powers to tackle the matters mentioned are under the auspices of the Department of Jobs, Innovation and Trade, together with the Competition and Consumer Protection Commission. The Commission, which was established on 31 October 2014, is the statutory body responsible for enforcing consumer protection and competition law in Ireland.
During 2014, the Department of Jobs, Enterprise and Innovation introduced the new Competition and Consumer Protection Act (No 29 of 2014). The Act provides for the making of provisions for regulating certain practices in the grocery goods sector. I understand that the Department of JEI is currently finalising the implementation of Grocery Regulations under this legislation. This, I hope, will guide the supermarkets in how they deal with producers in a fair and reasonable manner.
The price levels struck by growers with retail outlets are entirely a commercial matter. Whilst it is not my role to set supermarket prices for agricultural products or to be involved in price negotiations between growers and retailers, I very much encourage greater co-operation and discussion between all parties in order to ensure the viability of the largest number of Irish growers possible.
The Horticultural Forum was established to act as a voice for the edible horticultural sector to represent the interests of the sector in relation to issues facing Irish growers, which would include strengthening the position of growers in the supply chain. Membership of the Forum includes growers, other stakeholders including companies involved in the marketing of edible horticultural produce, and representatives of Bord Bia, IFA & Teagasc. In order to avoid any conflict of interest, my Department is not represented on the Forum but is available to attend meetings and to provide technical assistance. The Forum has a broad remit and has established a smaller steering group to direct its activities. It has engaged a consultant to provide some guidance in respect of a number of areas of interest. The Forum sets its own agenda and my Department is not involved in influencing what subjects it pursues.
