Written Answers Nos. 168-197
168. Deputy Pearse Doherty asked the Minister for Finance his plans to direct the Ireland Strategic Investment Fund to invest in social and public housing; and if he will make a statement on the matter. [6160/16]
Amharc ar fhreagraAs the Deputy will be aware, the challenges that we are facing in different sectors of the housing market, including social housing, are both multifaceted and inextricably bound up with one another. Within that context, policy initiatives in the area of housing must seek to address all of the various sectors of the market, including the private owner occupier market, the rental market and social housing provision.
In line with its statutory mandate, the Ireland Strategic Investment Fund is examining opportunities to make, on a commercial basis, strategic investments that have the potential to support increased private and social housing output.
In the private market, the Fund is already involved in a number of important initiatives which cumulatively can make a contribution to increased housing output. This includes its investments in Activate Capital, which is an innovative non-bank financing platform that has the potential to provide funding for substantial numbers of new homes in Dublin and the other major urban centres in which demand is most pronounced; Ardstone Residential Partnership, which is a residential equity investment fund that is focused on delivering residential units to the market over the short- to medium-term; and the Wilbur Ross Cardinal Commercial Real Estate Mezzanine Debt Fund, which has funded a number of residential developments in recent months.
The Fund is also engaging across a wide range of stakeholders, including private sector investors, with a view to identifying opportunities to invest in the area of social housing. Key factors which must be addressed to facilitate ISIF involvement in such projects include the commercial viability of proposals, EUROSTAT treatment of fund structures which receive the majority of their revenue from Government sources and the ability to create off-balance sheet vehicles, outside of PPPs, which is a requirement to make proposals work. While, to date, no investable projects or initiatives have emerged, the Fund is continuing to engage proactively with possible social housing investment structures and opportunities and will continue to do so in accordance with its statutory mandate to invest on a commercial basis in a way that supports wider economic additionality.
169. Deputy Pearse Doherty asked the Minister for Finance his plans to develop local or public banks based on the Sparkassen model here, directly or through facilitative legislation or regulation; and if he will make a statement on the matter. [6161/16]
Amharc ar fhreagraMy Department have examined the concept of local public banking and its potential for Ireland. Officials examined how local public banking, with a focus on supporting SMEs, could complement existing Government policy and other initiatives already in place in a range of areas such as improving competition in the banking market, augmenting competition and innovation in the SME finance market and regional development.
Local or public Banks, such as Sparkassen in Germany, focus on the needs of SMEs in their catchment area rather than profit maximisation. This is very similar to the business model of the Strategic Banking Corporation of Ireland. It is encouraging to note that to the end of December 2015 almost €172 million has been lent through the SBCI to approximately 4,600 SMEs across Ireland in a wide variety of sectors and regions.
Additionally, the Government has to date delivered a number of initiatives that already support increased access to finance for SMEs such as: The Supporting SMEs Online Tool, the Credit Guarantee Scheme, Microenterprise Loan Fund, Local Enterprise Offices and the Credit Review Office. Given the significant SME supports that have already been put in place by the Government to support SME financing it is not clear at present how local public banks could create a distinct product offering that would avoid replicating supports that are already available.
The Department of Finance, working with other relevant Departments and Agencies, will continue to monitor and analyse the SME finance market in Ireland and will keep the concept of local public banking under review within the parameters of overall banking policy. This will be done with a view to taking appropriate actions as warranted in order to ensure that SMEs in Ireland have the opportunity to reach their full potential in terms of growth and employment generation.
170. Deputy Pearse Doherty asked the Minister for Finance his plans to apply for a retrospective recapitalisation of Ireland's pillar banking debt; and if he will make a statement on the matter. [6162/16]
Amharc ar fhreagraFollowing the creation of the Direct Recapitalisation Instrument (DRI) on the 8th December 2014, in accordance with Article 19 of the ESM Treaty, there now exists a specific provision which allows a potential retroactive application of the instrument on a case-by-case basis and by mutual agreement. This optionality remains in place however, unlike back in 2012, the ESM is no longer the only option open to us to recover the money provided to recapitalise our banks.
I have previously stated that I see no benefit in making an application to the ESM at this time. Investors are now willing to support Irish banks again and the market value of our investments has improved accordingly. Ultimately it will be an assessment as to which route - ESM or the markets - represents the best value which will determine these decisions. My overall objective in relation to the State's investments in the banks has always been to maximise the return to the Irish taxpayer.
In relation to AIB specifically, which is our largest investment, I have previously stated that an Initial Public Offering or IPO on the stock market looks like the most likely exit route for the State, however there is still work to be done in assessing how we might structure our gradual exit from the bank and particularly when we should start this process. My Department has recently appointed an Independent Financial Advisor, Rothschild, to provide advice in this regard. The appointment will help provide the Government with all the information and optionality needed to make an informed decision about our investment.
171. Deputy Pearse Doherty asked the Minister for Finance the value of floating bonds related to the liquidation of Irish Bank Resolution Corporation currently held by the Central Bank of Ireland; the bank's plans for these bonds; and if he will make a statement on the matter. [6163/16]
Amharc ar fhreagraI am advised that the nominal value of the Central Banks current holdings of floating rate bonds related to the liquidation of IBRC amounts to €22.034 billion.
The Central Bank indicated a minimum disposal schedule of €0.5 billion up to the end of 2014, €0.5 billion per annum 2015-2018, €1 billion per annum 2019-2023 and €2 billion per annum after that until all the bonds are sold. However, the Central Bank also stated that it would dispose of the government bonds as soon as possible, provided conditions of financial stability permit. This position remains unchanged. Due to improved financial stability conditions, the disposals of fixed and floating rate government bonds from the Special Portfolio have been faster than the minimum.
172. Deputy Pearse Doherty asked the Minister for Finance if he will provide an update of the liquidation process at the Irish Bank Resolution Corporation, including the timeframe for any likely payments to junior bondholders; and if he will make a statement on the matter. [6164/16]
Amharc ar fhreagraI am advised by the Special Liquidators that they are currently working on a third progress update report which will provide an update on the winding up of Irish Bank Resolution Corporation Limited (in Special Liquidation). This will be available on the Department of Finance website once it has been finalised.
The Special Liquidators have cash receipts in excess of €2.1 billion on hand which will be available for distribution to creditors. The ultimate level of dividend paid, if any, to each creditor cannot be known until such time as all loan assets are sold, the total level of adjudicated creditors is finalised and the other contingent creditor claims which may crystallise, including those from litigation, are known. The Special Liquidators continue to adjudicate creditor claims by creditor class as and when it has been determined that the particular class of creditor will be entitled to a dividend. Each class of creditor will be paid according to their legal priority as set out in the Companies Acts. I understand that subordinated bondholders have submitted claims in the region of €285 million as part of this process.
173. Deputy Pearse Doherty asked the Minister for Finance the engagements his Department has had with the European Union Commission seeking changes in value-added tax rates applicable here since 2013; and if he will make a statement on the matter. [6165/16]
Amharc ar fhreagraI am advised by the Revenue Commissioners that the VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law must comply. The Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless there is a provision in the Directive that permits a lower rate. Settled case law of the Court of Justice of the European Union (CJEU) requires that the limited circumstances in which rates other than the standard rate are used be strictly interpreted and narrowly applied so as not to create or increase divergence of VAT treatment in the EU Member States. These limited circumstances are set out in the Schedules of the Value-Added Tax Consolidation Act 2010
Schedule 1 of the Value-Added Tax Consolidation Act 2010 lists activities that are exempt from VAT and in respect of which the supplier has no entitlement to deduct input VAT. Schedule 2 lists supplies that are liable at the zero rate and in respect of which the supplier has an entitlement to deduct input VAT. Schedule 2 includes international services, human and animal oral medicines, children's clothing and footwear, books and a range of food and drink items. The range of food products that can benefit from the zero rating is constrained by Article 110 of the VAT Directive which permits the retention of the zero rate for "clearly defined social reasons" where the products were liable to VAT at the zero rate on 1 January 1991.
Schedule 3 lists the goods and services that are liable to VAT at the reduced rates of 9% and 13.5%. The goods and services currently liable to VAT at the 9% rate are ones listed in Annexe III of the VAT Directive and Ireland was permitted under Article 113 of the Directive to apply a rate lower than 12% to these goods and services. The goods and services liable to VAT at the 13.5% rate are ones that are not listed in Annexe III, but in respect of which Ireland is permitted under Article 118 to retain a reduced rate. The goods and services to which the 9% rate applies include:
- the supply of food and drink (excluding alcohol, soft drinks and bottled water) in the course of catering;
- hot take-away food and hot drinks;
- hotel lettings, including guest houses, caravan parks, camping sites etc.;
- admissions to cinemas, theatres, certain musical performances, museums, art gallery exhibitions;
- amusement services of the kind normally supplied in fairgrounds or amusement parks;
- the provision, by a person other than a non-profit making organisation, of facilities for taking part in sport;
- printed matter e.g. newspapers, magazines, brochures, leaflets, programmes, maps, catalogues, printed music (excluding books);
- hairdressing services.
The goods and services to which the 13.5% rate applies include:
- The supply of gas, electricity, solid fuel and home heating oil;
- The supply of new buildings, concrete block and ready to pour concrete;
- The supply of photographic services, agricultural services and photographic services;
- The hire of cars and boats;
- Beauty services such as facials, nail treatments, tanning and sunbed services.
The supply of goods and services not listed in the Schedules to the Value-Added Tax Consolidation Act 2010 is liable to VAT at the standard rate. Where a good or service is not specified in the Schedules mentioned then the correct rate is the standard rate. Revenue does have a VAT rates database on its website (http://www.revenue.ie/en/tax/vat/rates/index.jsp) that lists thousands of product and services types and gives the correct VAT rate by reference to the Schedules.
It is widely recognised that there are anomalies in the rates applying to goods and services and I receive Parliamentary Questions concerning particular anomalies from time to time. Under the VAT Directive the apparent anomalies can generally only be eliminated through applying higher rates to goods and services currently liable at the zero rate or at one of the reduced rates.
Any changes to VAT rates outside of what is currently permitted though the EU VAT Directive must be negotiated at EU technical working groups and ultimately agreed at ECOFIN. As with all tax files, any changes require unanimous agreement from all Member States. The EU Commission is planning to launch an Action Plan on VAT in the very near future which I expect to open up the possibility of adding more flexibility to the application of VAT rates by Member States. I expect technical discussions at an official level to begin during the current Dutch Presidency of the EU. My officials will engage fully in these discussions.
174. Deputy Pearse Doherty asked the Minister for Finance if he will consider an amendment to the local property tax to allow for a complete exemption for residents in properties that are not safe, through no fault of their own, such as Longboat Quay; and if he will make a statement on the matter. [6166/16]
Amharc ar fhreagraThe Finance (Local Property Tax) Act 2012 (as amended) provides that any property that is in use as, or that is suitable for use as, a dwelling house, is liable to the local property tax (LPT). Therefore, the condition of a property is not relevant where the property is actually occupied as a dwelling house.
Where a property is not occupied and is in such bad condition that it is not suitable for occupation as a dwelling house, it is not liable to LPT. I am advised by the Revenue Commissioners that it is not possible to provide a prescriptive set of criteria that a property must meet to be treated as not suitable for occupation as a dwelling house. As LPT is a self-assessment tax it is up to a property owner to assess whether a property is liable or not, and to assess the chargeable value of the property where it is liable. In cases where the property owner assesses a property as non-liable due to its being unsuitable for use as a dwelling or assesses a property at a reduced value because of fire safety or other structural issues, Revenue will consider the facts and circumstances of the particular case.
I have no plans to introduce an exemption along the lines suggested by the Deputy.
175. Deputy Mick Wallace asked the Minister for Finance his views on claims by the chartered accountants regulatory board, who have stated that accounting standard IAS 39 forces banks to portray an inaccurate financial position; his further views that his assurances, provided in reply to Parliamentary Question No. 185 of 18 February 2014, that banks have not systemically overvalued loans in their published accounts could be misleading; and if he will make a statement on the matter. [6178/16]
Amharc ar fhreagraI have answered a number of Parliamentary Questions in the past in relation to rules adopted by banks when valuing assets including loans. These rules are determined by the relevant accounting standards and it is the responsibility of the directors of the respective banks to ensure these rules have been properly applied. To provide assurance that this is the case, the proper application of the rules is subject to an annual independent external audit review.
As I have stated in the past, nothing has been brought to my attention to suggest that these rules have not been correctly applied by the banks.
Finally, the requirement for banks to prepare financial statements is laid out in the Companies Acts. The Companies Acts come under the scope of the Department for Enterprise, Trade and Innovation. The Director of Corporate Enforcement has widespread powers and functions in relation to potential breaches of the Companies Acts.
176. Deputy Jack Chambers asked the Minister for Finance the number of residential properties his Department plans or expects will be sold by the National Asset Management Agency in 2016 as individual units and-or as part of larger portfolios comprising several units; and if he will make a statement on the matter. [6215/16]
Amharc ar fhreagra177. Deputy Jack Chambers asked the Minister for Finance the number of residential units the National Asset Management Agency sold in 2015; the number that were sold as part of portfolios; his views on the sale of large portfolios to vulture funds, given the current housing shortage; and if he will make a statement on the matter. [6216/16]
Amharc ar fhreagraI propose to take Questions Nos. 176 and 177 together.
The Deputy will be aware that NAMA does not own residential property and therefore is not in a position to sell such properties to any prospective purchaser. Rather, NAMA has acquired loans that are secured by property, which in some cases may be residential property. The properties that secure these loans are owned by NAMA borrowers, in the same way a homeowner owns a home which is subject to a mortgage provided by a bank. NAMA's legal relationship to those properties is similar to a bank which holds security over a property.
NAMA, unlike other lenders, generally owns no residential mortgages, owner-occupier or buy-to-let, in its loan portfolio. In a very small number of cases the principal private residence of a NAMA borrower may be pledged as security for a NAMA loan.
A property securing a NAMA loan may be brought to the market for sale by the borrower or receiver in one of two ways, either (1) as part of a portfolio of assets, or (2) individually, in each case to generate proceeds to repay the borrower's loan to NAMA. Again, in much the same way a homeowner may sell their home and use the sale proceeds to repay their mortgage. The sale of properties securing NAMA's loans is managed directly by the borrower/property owner or, where the property is the subject of enforcement, by the appointed receiver/administrator acting on behalf of the borrower/property owner. NAMA requires that the sale of properties by borrowers and receivers are openly marketed to ensure that the best available price in the market at the time of the sale is achieved.
In its capacity as a secured lender, I am advised that NAMA approved the sale by borrowers and receivers of 5,345 residential property units in 2015. 89% (4,783 of the 5,345 units) were sold on the open market by NAMA borrowers and receivers in individual sales transactions to individual property purchasers.
I am further advised that the remaining units, 562 units (11% of the total), were sold on the open market by NAMA borrowers and receivers as part of larger group or portfolio sales. The properties that were sold in groups or portfolios were typically already tenanted and vacant possession was not sought prior to the sale. Such portfolios are, as a consequence, generally acquired by investors seeking long-term rental streams and therefore existing tenancy arrangements tend not to be impacted by such sales.
I would also refer the Deputy to NAMA's Annual Report and Accounts, which are available on the NAMA website, www.nama.ie. These reports cover each full year of NAMA's operations and provide a breakdown of disposals by transaction type, sector, and location, as well as the number of property units disposed of by NAMA borrowers and receivers. In particular, I would refer the Deputy to pages 14 -19 of NAMA's 2014 Annual Report for the most recent breakdown. I expect that NAMA's upcoming 2015 Annual Report will be published within the next two months and will contain an update of this information.
More generally, it is NAMA's policy that, where possible, borrowers and receivers should avoid seeking vacant possession of residential property in advance of asset sales conducted by the borrower or receiver and in loan sales conducted by NAMA in order to minimise disruption to people living in these homes. As a consequence, such assets and loans are acquired typically by investors seeking long-term rental streams. Therefore existing tenancy arrangements tend not be impacted by such sales. NAMA expects every acquirer of its loans to comply with their legal requirements to respect tenant rights in accordance with their lease terms.
Prior to facilitating the sale of any assets or loans secured by residential property, NAMA ensures that all avenues to use the properties for social housing have been exhausted. The Deputy will note that NAMA made practically all of the vacant residential stock in its original loan portfolio available for social housing. I am advised that NAMA identified 6,635 units for social housing. Local authorities confirmed demand for 2,531 of these units and 2,042 of these have been delivered.
Also, before facilitating the sale of assets or loans, NAMA reviews the assets of every debtor to establish if they could be used for residential development. In the context of a recently advertised loan sale, for instance, NAMA removed 16 borrowing connections from the proposed sale as it identified properties owned by these borrowers that could be used to deliver additional residential supply on a commercial basis, funded by NAMA. These sites will contribute to the achievement of NAMA's stated commercial objective of funding the construction of 20,000 new homes in Ireland by 2020, subject to commercial viability. This represents a significant contribution by NAMA, in line with its commercial mandate, to future residential supply in Ireland. The residential units delivered by borrowers through NAMA's residential funding programme will be sold in individual lots on the open market.
Aside from the sites being developed through NAMA's residential funding programme, it is my understanding that there are relatively few loans remaining in NAMA's portfolio that are secured by residential properties. Furthermore, it is decision for NAMA, in line with its independent commercial mandate, to ascertain the appropriate, value maximising strategy for any such loans.
It is important to highlight that the purchase or sale of a loan or a residential unit from one entity to another does not increase or reduce the supply of housing in the market. It is through the construction of new residential units that supply is increased. It should be noted that, in addition to repaying its debt, NAMA is using the proceeds of loan repayments and loan sales to fund the construction of new homes on a commercial basis. This is in accordance with NAMA's Section 10 obligation to seek to protect or enhance the value of its acquired assets. In this way, NAMA's loan sales do contribute to increase the supply of residential units in the market.
Finally, as the Deputy will be aware, the Consumer Protection (Regulation of Credit Servicing Firms) Act, 2015 was enacted on 8 July 2015. This Act ensures that relevant borrowers, whose loans are sold to third parties, maintain the same regulatory protections they had prior to the sale, including those provided by various statutory codes such as the Consumer Protection Code, Code of Conduct on Mortgage Arrears, and the Code of Conduct for Business Lending to Small and Medium Enterprises.
178. Deputy Jack Chambers asked the Minister for Finance if he will allow persons who have made additional voluntary contributions and have drawn down 30% of the fund value, to draw down the remaining 70%; and if he will make a statement on the matter. [6217/16]
Amharc ar fhreagraFinance Act 2013 introduced Section 782A of the Taxes Consolidation Act 1997 which provided members of occupational pension schemes with a once-off opportunity to access up to 30% of their Additional Voluntary Contributions (AVCs) prior to retirement. The option was available for a three year period from 27 March 2013, the date that Finance Act 2013 was passed into law, and came to an end on 26 March 2016.
There are a number of reasons why pre-retirement access to pension savings is not permitted on a general basis, the principal one being that these arrangements (and the associated tax reliefs on contributions and pension fund growth) are designed to be long term savings vehicles based on the principle that the benefits will be "locked away" to help fund an adequate income in retirement.
The pre-retirement access to a portion of AVCs which I introduced in Budget and Finance Act 2013 was allowed on a tax-neutral basis the contributions were tax-relieved at the individual's marginal rate on the way in and were taxed at the individual's marginal rate on withdrawal. This was a measure designed to enable rather than incentivise individuals to access part of their pension savings beyond their regular or compulsory pension contributions and the take-up of the measure has not been particularly significant. It is important that individuals continue to provide for their retirement and, it would appear, most individuals with AVCs decided to preserve their AVC pension savings. I have no plans to reintroduce the measure along the lines suggested in the question.
179. Deputy Peadar Tóibín asked the Minister for Finance the new tax liabilities, such as withholding tax on the interest paid on individual loans, that Irish businesses will face due to the acquisition of distressed loan books by special purpose vehicles, SPVs; if he has brought these taxes to the attention of business; and if some form of relief will be provided for businesses that are struggling. [6232/16]
Amharc ar fhreagraSection 246 Taxes Consolidation Act 1997 (TCA 1997) imposes on companies generally, and on others who pay interest to persons whose usual place of abode is outside the State, the obligation to deduct tax from payments of annual interest and to account to Revenue for the tax deducted.
Section 246(3) TCA 1997 provides for several exceptions/exemptions from the obligation to deduct withholding tax. The exemptions/exclusions include:
- interest paid to or by a bank carrying on business in the State;
- interest on certain securities issued by certain certified companies or specified collective investment undertakings;
- interest paid by a company to an investment undertaking that is within the gross-roll-up taxation regime;
- interest paid by a company in a fiduciary or representative capacity (except when paid to non-residents);
- interest on Government securities and securities issued by certain State-sponsored bodies;
- interest paid without deduction of tax by credit unions;
- interest which is a distribution under 'close company' rules;
- interest paid by a company authorised by the Revenue not to deduct tax;
- interest paid by a company or an investment undertaking to a company in another EU Member State, in a country with which Ireland has a tax treaty in force or in a country with which Ireland has signed a tax treaty which has yet to come into force, provided certain conditions are met;
- interest paid by finance and other companies that make loans but are not licensed banks or building societies (subject to certain conditions);
- interest paid to a special purpose securitisation company and interest paid by such a company to a person who is resident in another EU Member State, in a country with which Ireland has a tax treaty in force or in a country with which Ireland has signed a tax treaty which has yet to come into force;
- interest paid to or by the Strategic Banking Corporation of Ireland; and
- interest paid to the National Treasury Management Agency, the state acting through the National Treasury Management Agency or a National Treasury Management Agency Fund investment vehicle.
Therefore where a special purpose vehicle (SPV) has acquired a distressed loan book including the loans of an SME, there may be a requirement for the SME to operate interest withholding tax at the standard rate on any loan repayments it makes to the SPV. As the SME is not a party to the disposal of the loans, on occasion, they may not be aware of the corporate identity of the acquirer. Therefore, they may not have enough information to determine if they are required to operate the interest withholding tax. I understand that Revenue will be issuing an e-Brief this week to address the matter which will encourage SMEs in this situation to contact them about a resolution.
182. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the position regarding a stream (details supplied) in County Kerry that is overflowing; and if he will make a statement on the matter. [5680/16]
Amharc ar fhreagraLocal flooding and coastal erosion issues are matters for Local Authorities to investigate and address in the first instance and to carry out flood mitigation and coastal protection works using its own resources.
It is open to Kerry County Council to submit a funding application under the Minor Flood Mitigation Works and Coastal Protection Scheme to the Office of Public Works. Any application received will be considered in accordance with the scheme eligibility criteria, which include a requirement that any measures are cost beneficial, and having regard to the overall availability of resources for flood risk management. Application forms are available on the OPW's website under Flood Risk Management: http://www.opw.ie/en/floodriskmanagement/operations/minorfloodworkscoastalprotectionscheme/.
183. Deputy Finian McGrath asked the Minister for Public Expenditure and Reform his views on correspondence (details supplied) regarding the lack of employment opportunities for a person who had been self-employed; and if he will make a statement on the matter. [5690/16]
Amharc ar fhreagraAs the Deputy will be aware, recruitment to the Civil Service is regulated by the Public Service Management (Recruitment and Appointments) Act 2004.
The Act established the Public Appointments Service (PAS) as the centralised recruitment body for the Civil and Public Service. The Act also established the Commission for Public Service Appointments (CPSA) as the regulator of civil service recruitment. The CPSA publishes codes of practice setting out how competitions are run and also issues recruitment licences to individual Departments to allow them to conduct their own recruitment. The majority of recruitment to the Civil Service is carried out by PAS.
Recruitment competitions are advertised on the PAS website: www.publicjobs.ie. By logging on to this website, individuals can also register to be notified by e-mail or text message of vacancies as they arise.
The person may also wish to consider registering with the their local Intreo Office.
184. Deputy John Brassil asked the Minister for Public Expenditure and Reform his plans to provide funding for an appropriate assessment screening in relation to coastal protection works at Cliff Road at Ballyheigue in County Kerry, given that the cliff is badly eroded and threatens to collapse the main road servicing the Kerry Head area; and if he will make a statement on the matter. [5897/16]
Amharc ar fhreagra185. Deputy John Brassil asked the Minister for Public Expenditure and Reform his plans to provide funding to Kerry County Council to carry out coastal protection works to take place following an Appropriate Assessment Screening on the Cliff Road at Ballyheigue in County Kerry, given that the cliff is badly eroded and threatens the collapse of the main road servicing the Kerryhead area; and if he will make a statement on the matter. [5898/16]
Amharc ar fhreagraI propose to take Questions Nos. 184 and 185 together.
Local flooding and coastal erosion issues are matters for Local Authorities to investigate and address in the first instance and to carry out flood mitigation and coastal protection works using its own resources.
The Office of Public Works operates a Minor Flood Mitigation Works and Coastal Protection Scheme. This administrative Scheme's eligibility criteria, including a requirement that any measures are cost beneficial are published on the OPW website, www.opw.ie. It is open to the Council to submit a funding application under the Scheme. Any application received will be considered in accordance with the overall availability of resources for flood risk management and the scheme's eligibility criteria available on the OPW website. Application forms are available on the OPW's website under Flood Risk Management:
http://www.opw.ie/en/floodriskmanagement/operations/minorfloodworkscoastalprotectionscheme/.
186. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the status of a tidal bank (details supplied) in Killorglin in County Kerry; and if he will make a statement on the matter. [5959/16]
Amharc ar fhreagraThere are flood defence embankments in this location that form part of the River Maine Catchment Drainage Scheme, and as such are maintained by the Office of Public Works (OPW). The River Maine CDS consists of 228 km of channel, 96 km of embankment, 130 bridges and 210 sluice outfall structures. Severe damage was experienced to a number of assets during the storms over the last few years. The OPW is aware of damage at Tulligbeg, however other sections of embankments suffered more severe damage and repair works are being prioritised at these locations. The OPW is currently awaiting environmental assessment reports which are required as the embankments concerned are located within or adjacent to a Special Area of Conservation (SAC).
187. Deputy Róisín Shortall asked the Minister for Public Expenditure and Reform his plans in respect of the restoration of pension cuts to retired public servants; and the timescale proposed for this. [6268/16]
Amharc ar fhreagraIn June 2015 Government agreed to my proposals for a significant phased restoration of most of the cuts affecting public service pensions due to the Public Service Pension Reduction (PSPR). These proposals reflected my commitment to restore the pensions of retired public servants as early as economic and fiscal progress allowed.
These PSPR ameliorative proposals were legislated in late 2015 under the Financial Emergency Measures in the Public Interest (FEMPI) 2015 Act, with changes occurring in three stages, on 1 January 2016, 1 January 2017 and 1 January 2018.
On 1 January 2016, increases in the annual pension thresholds before PSPR applies were activated. These exemption threshold increases remove PSPR entirely from a significant number of pensions with relatively lower values, while those pensions which continue to be impacted by PSPR receive a boost of €400 per year.
On 1 January 2017, additional PSPR amelioration, acting principally via further exemption threshold increases, will fully remove PSPR from another significant tranche of public service pensions, while at the same time boosting those pensions which remain affected by PSPR by €500 per year.
On 1 January 2018, the third stage of PSPR amelioration will ensure that all PSPR-impacted pensions with values up to €34,132 will be fully restored, meaning that PSPR will no longer affect such pensions, while those pensions which continue to be impacted by PSPR will get a boost of, in most cases, €780 per year.
These legislated PSPR ameliorative measures, which are in the process of being implemented, constitute a fair and sound basis on which, with the restricted resources available to Government, public service pensions may benefit from significant restoration, with those on lower PSPR-impacted pensions benefitting to a greater extent. The extent of the legislated restoration, when fully in place from 2018, is substantial, carrying an annual cost estimated at €90 million, and ensuring that only the top 20% higher value public service pensions will continue to be impacted by the PSPR.
Under section 12 of the FEMPI Act 2013, the Minister for Public Expenditure and Reform is required to review the necessity of the FEMPI legislation annually and cause a written report of his or her findings to be laid before each House of the Oireachtas. In that context, I believe that economic progress and fiscal consolidation in the years ahead will determine the scope and timing of the possible further scale-back or elimination of the financial emergency measures, including the PSPR.
188. Deputy Danny Healy-Rae asked the Minister for Public Expenditure and Reform if he will provide funding to clear the Flesk River through Clonkeen and Glenflesk of all blockages, trees, scrub and silt, to allow the water to flow freely and to prevent future flooding of houses, community facilities, the N22 and the R570 regional road, and the Foildonn link road, where 14 families are continuously cut off in times of heavy rain. [5364/16]
Amharc ar fhreagraThe River Flesk does not form part of any Arterial Drainage Scheme which would fall under the remit of the Office of Public Works (OPW) under the 1945 Arterial Drainage Act. The OPW therefore has no responsibility for the maintenance of this river.
Local flooding issues are a matter, in the first instance, for each Local Authority to investigate and address, and Kerry County Council may carry out flood mitigation works using its own resources. The Office of Public Works operates a Minor Flood Mitigation Works and Coastal Protection Scheme. This administrative Scheme's eligibility criteria, including a requirement that any measures are cost beneficial are published on the OPW website, www.opw.ie. It is open to the Council to submit a funding application under the Scheme. Any application received will be considered in accordance with the overall availability of resources for flood risk management and the scheme's eligibility criteria.
Glenflesk village is one of 300 locations nationwide that is being assessed under the OPW's Catchment Flood Risk Assessment and Management (CFRAM) Programme, the purpose of which is to implement the EU Floods Directive and national flood policy. To date this Programme has produced predictive flood risk and hazard mapping for each location, the development of appropriate and viable preliminary flood risk management options and is working to finalise the production of flood risk management plans. Under the South Western CFRAM Study, draft predictive flood maps for Glenflesk have been produced and were the subject of a Public Consultation Day in Glenflesk on 21 October 2014. Following the conclusion on 23 December 2015 of the national statutory public consultation on the draft flood maps, work is currently under way on finalisation of the maps. A Public Consultation Day on Preliminary flood risk management options was held in Glenflesk on 8 December 2015. Draft Flood Risk Management Plans are expected in mid 2016 and will be the subject of public consultation. Further information is available on the South Western CFRAM Study website: www.southwestcframstudy.ie.
189. Deputy Jim Daly asked the Minister for Public Expenditure and Reform his plans to formally confirm the Bandon flood relief scheme in County Cork. [5379/16]
Amharc ar fhreagraI have considered the report of the consultants appointed to review the Environmental Impact Statement (EIS) for the River Bandon (Bandon) Flood Relief Scheme and have now confirmed the Scheme. The Office of Public Works (OPW) has advised that it will comply with the conditions attached to the confirmation subject to certain clarifications which have been accepted by my Department.
The Order confirming the Scheme was signed on 4 April 2016 and notice of the confirmation has been published on my Department's website and will also be in the local media later this week. A statutory 8 week period of public notice of the confirmation decision must be observed, following which works may commence, subject to completion of the construction procurement process.
The review of the EIS for flood schemes is part of a new process introduced under EU Regulations and the Bandon Scheme is just the third Scheme to be confirmed following such a review. The Clare River (Claregalway) Scheme and the River Ilen (Skibbereen) Scheme were the other schemes confirmed under this process.
190. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the status of an application for funding in relation to flood mitigation and coastal protection works for an area (details supplied) in County Kerry; and if he will make a statement on the matter. [5380/16]
Amharc ar fhreagraNo application has been received to date by the Office of Public Works (OPW) under its Minor Flood Mitigation Works & Coastal Protection Scheme from Kerry County Council (KCC) for the Kenmare area, County Kerry.
As previously advised, on 11th February, 2014 the Government allocated specific funding to local authorities for repair of public coastal defence infrastructure that was damaged in the Winter 2013/14 storms, of which €1.2m was allocated to County Kerry. KCC submitted to the OPW a programme of proposed works in relation to its allocation that included projects in the Kenmare area. All of this specific storm repairs funding has now been disbursed to Kerry County Council.
191. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform when recently approved works to prevent further flooding in the Claregalway area will commence; the completion date for these works; and if he will make a statement on the matter. [5381/16]
Amharc ar fhreagraThe Minister for the Department Public Expenditure and Reform (DPER), Brendan Howlin T.D., confirmed the Clare River (Claregalway) Scheme in November 2015 and this was followed by an eight week period of public notice of the Confirmation decision.
Also, based on the expert recommendation contained in the independent valuation report commissioned by DPER on the Environmental Impact Statement prepared for the Scheme by the Office of Public Works (OPW), the Department considered that a number of further conditions (26) should be attached to the decision to confirm the Claregalway Scheme. The purpose of these conditions is to provide additional mitigation measures to those already included in the EIS, to avoid/reduce and if possible offset any major adverse effects (if any) of the proposed Scheme.
In order to comply fully with these conditions the OPW deemed it necessary to take on the services of both Archaeological and Environmental Consultants to carry out Archaeological and Environmental Monitoring of the works throughout the construction phase of this project. The OPW is in the process of procuring consultants to carry out this work and it is expected that construction on the main scheme works will commence in May 2016. Works will be carried out over a 3 year period with substantial completion expected to be achieved by the end of 2018.
192. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the status of persons who wish to transfer to other employment within the public sector, for example, persons who wish to transfer from the Health Service Executive in Dublin to similar posts outside Dublin or persons in the HSE who wish to transfer to new employment in local authorities; the arrangements in place for vacancies to be available and filled within the public service; and if he will make a statement on the matter [5382/16]
Amharc ar fhreagraAs the Deputy will be aware under the Civil Service Renewal Plan, my Department in conjunction with the Civil Service Management Board is examining ways to improve mobility within the Civil Service.
There are currently no formal centrally managed arrangements for the transfer of staff between the different sectors of the public service. While, for example, the seeking of expressions of interest from public servants in respect of specific posts did allow for some movement between sectors such moves were, in the main, designed to address specific skills shortages.
I understand from my colleague the Minister for Health who has responsibility for the HSE that the agreed arrangements for the redeployment staff within the Health, Education, and Local Government sectors are managed directly by those sectors.
The Minister for Health has also informed me of the following.
A National Transfer Policy Scheme for the HSE was introduced in April 2007. It was developed as part of the framework agreement between IMPACT & the HSE and applies to clerical/administrative staff. The Central Transfer Processing Unit in HR Services, Shared Services, Manorhamilton, manage requests for clerical/administrative grades who wish to transfer. The feedback on the current operation of the scheme was that it was proving difficult to facilitate requests from employees who wish to transfer to a different location due to the fact that their current posts were not being backfilled under the moratorium on recruitment and promotion.
As an interim arrangement in May 2015 the HSE introduced an Employee Swap/Exchange System applicable to all HSE employees who are employed in a permanent capacity and have completed their probationary period at entry grade. This system allows an employee to arrange a job swap with an employee of the same grade employed in a different location of the HSE, thereby enabling both employees to change to their desired locations. This Swap/Exchange System does not restrict a line manager's ability to reassign staff in line with service needs. A joint review of the Swap/Exchange System is currently underway.
There is a current Public Health Nurses Transfer Policy which came into effect on 1st April 2015. The purpose of this policy is to give effect to the LRC proposals of 23 July regarding the HSE and Irish Nurses Midwives Organisation, to establish a transfer panel specifically for Public Health Nurses and has been agreed by all parties to the process. The policy replaces any existing local or regional system used to fill vacant Public Health Nurses posts.
The HSE National Ambulance Service has operated a Transfer Policy since 2014 to allow for a mechanism to facilitate the placement, where possible of all National Ambulance Service personnel in or as close as possible to the Divisional area nearest their home.
Discussions are currently ongoing with the National Joint Council of Unions(NJC) around the operation of transfer panels in the Health Services.
193. D'fhiafraigh Deputy Éamon Ó Cuív den Aire Caiteachais Phoiblí agus Athchóirithe an raibh cruinniú aige le hionadaithe ó phobal Inis Meáin maidir le forbairt na céibhe ar an oileán sin; cén áit a raibh an cruinniú sin; cén dáta a bhí an cruinniú ann; ar tógadh miontuairiscí den chruinniú; an bhfuil sé sásta miontuairiscí an chruinnithe a chur ar fáil; céard a dúirt sé leis an toscaireacht mar aisfhreagra ar an méid a d’inis an toscaireacht dó; cé na cinntí atá déanta ag éirí as an gcruinniú; agus an ndéanfaidh sé ráiteas ina thaobh. [5405/16]
Amharc ar fhreagraBhí cruinniú agam ar 20 Eanáir 2016 sa Roinn Caiteachais Phoiblí agus Athchóirithe le hionadaithe ó phobal Inis Meáin maidir le forbairt na céibhe ar an oileán sin. Níor tógadh miontuairiscí den chruinniú ach, mar atá a fhios agat is cúram do Chomhairle Contae na Gaillimhe Céibh an Chalaidh Mhóir ar Inis Meáin agus tá an Chomhairle freagrach as forbairt agus cothabháil na cé sin.
194. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform if he has sought a review from the engineering staff in the Office of Public Works on the issue raised regarding the cleaning of the river in Glanagimlagh in County Galway, as referred to in correspondence dated 7 March 2016; and if he will make a statement on the matter. [5461/16]
Amharc ar fhreagraThe issue raised by the Deputy has been examined by the Office of Public Works (OPW). The locality mentioned does not include any part of any Arterial Drainage Scheme which would fall under the remit of the OPW under the 1945 Arterial Drainage Act, and the OPW therefore has no responsibility for channel maintenance in this area. The area does not contain any Drainage Districts for which the relevant local authority would have a statutory maintenance responsibility. In such situations, responsibility for the condition of channels and banks typically falls on the riparian owners.
195. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform to engage with a person (details supplied) in County Kerry to address the flooding issues affecting a holding and the immediate locality; if the Office of Public Works will consider this person's proposals for remedial works; and if he will make a statement on the matter. [5486/16]
Amharc ar fhreagraThe locality mentioned by the Deputy does not include any part of any Arterial Drainage Scheme which would fall under the remit of the Office of Public Works (OPW) under the 1945 Arterial Drainage Act. The OPW therefore has no responsibility for channel maintenance in this area.
Local flooding issues are a matter, in the first instance, for each Local Authority to investigate and address. Kerry County Council may carry out flood mitigation works using its own resources. The Office of Public Works operates a Minor Flood Mitigation Works and Coastal Protection Scheme. This administrative Scheme's eligibility criteria, including a requirement that any measures are cost beneficial are published on the OPW website, www.opw.ie. It is open to the Council to submit a funding application under the Scheme. Any application received will be considered in accordance with the overall availability of resources for flood risk management and the scheme's eligibility criteria.
196. Deputy Willie O'Dea asked the Minister for Public Expenditure and Reform his views on the status of the community and voluntary forum set up months ago to address the issue of community employment supervisors pension and ex-gratia claims, given that to date it has had only one meeting on 27 November 2015 (details supplied); and if he will make a statement on the matter. [5546/16]
Amharc ar fhreagraA meeting of the Forum is scheduled to take place shortly.
197. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform for a breakdown of the line item, other voted expenditure, including demographics for each of the years 2016 to 2021 inclusive, contained in the 2016 budget manual, page C 51, table A9, line 4. [5578/16]
Amharc ar fhreagraThe line item referred to in the Deputy's question is reflected in so far as the period 2017-2018 is concerned - in Table 4 on page 31 of Expenditure Report 2016 published by my Department in October 2015. This Table sets out the Current Expenditure Ceilings across Government Departments for the three year period 2016 to 2018. As the Deputy will be aware, three year Ministerial Expenditure Ceilings have a statutory basis in the Ministers and Secretaries (Amendment) Act 2013.
Excluding the impact of the Lansdowne Road Agreement, the gross current expenditure ceilings increase by €0.4 billion in 2017 and €0.3 billion in 2018. These increases take into account:
- projected expenditure pressures in Health, Education and Social Protection arising from demographics;
- projected additional expenditure in Agriculture arising from the roll-out of the Rural Development Programme; and
- the projected carry over impact of certain Budget 2016 measures.
It should be noted that the ceiling for the Department of Social Protection reflects an adjustment to take account of expected lower numbers on the Live Register, with expenditure being reallocated to meet demographic demands.
Ministerial Expenditure Ceilings in respect of current expenditure have not been set for periods after 2018. Consequently, the figures included in Table A9 of the Budget book published by the Department of Finance for periods post 2018, use the aggregate overall amount of €0.3 billion included for 2018, adjusted for a lower amount being available for reallocation within expenditure from Live Register savings.
