Written Answers Nos. 112-129
112. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the economy continues to remain competitive when compared to other competing jurisdictions within the European Union and without; and if he will make a statement on the matter. [7734/16]
Amharc ar fhreagraSubstantial progress has been made in terms of improving Ireland's competitiveness in recent years. The latest figures from Eurostat, the statistics arm of the European Commission, estimated that nominal unit labour costs (a widely used measure of competitiveness internationally) in Ireland declined by 4.2 per cent annually in 2015. This is the largest decline across all EU Member States for whom data is available.
The decline in unit labour costs in 2015 is a continuation of the trend of significant improvement in Ireland's economy-wide cost competitiveness since 2008 (the peak year for unit labour costs in Ireland). It is estimated that nominal unit labour costs in Ireland fell by 20 percent between 2008 and 2015. This compares with an increase of 14 per cent in the UK and 9 per cent in the euro area over the same time period.
In addition, relatively low consumer price inflation over the last number of years has contributed to the improvement in Ireland's competitiveness as Irish price levels have fallen considerably relative to those of our euro area peers. For instance, annual HICP inflation in Ireland has been below or equal that of the euro area every year since 2008.
The gains in Irish competitiveness achieved since 2008 have been hard-won through productivity improvements and wage and price moderation. It is important that this competitiveness is preserved and continues to support growth. In this regard we must be cognisant that favourable exchange rate movements can reverse, as can be seen for example in the recent strengthening of the euro against Sterling. Similarly gains from the fall in oil prices may unwind in the future. Therefore we need to stay focused on continuing to improve Ireland's competitiveness through other channels such as wage and productivity improvements.
113. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he and his Department continue to monitor the levels of bank charges being imposed by various banks; the basis for such charges, nationally and internationally; and if he will make a statement on the matter. [7735/16]
Amharc ar fhreagraAs the Deputy is aware, all credit institutions in Ireland are independent commercial entities. I, as Minister for Finance, have no statutory role in relation to the charges applied by credit institutions. Section 149 of the Consumer Credit Act 1995 requires that credit institutions, prescribed credit institutions and bureaux de change must make a submission to the Central Bank if they wish to introduce any new customer charges or increase any existing customer charges in respect of certain services. Section 149 does not cover interest rates, rather it applies to fees and commissions only. The Central Bank may direct the institution not to impose the new or increased charge or it may approve the charge, or approve it at a lower level than requested by the institution. Once approved, the bank is entitled to impose the charge.
My Department published a report on the review of the regulation of bank fees and charges in December 2013. This contains a detailed description of the process by which the Central Bank makes decisions on whether or not to approve proposed charges. It is available on my Department's website at www.finance.gov.ie. Among the key findings of the review was that while fee and commission income has become a more important source of income to the banks in recent years, net fee and commission income in Irish banks was well below the average of their European peers.
The European Communities (Payment Services) Regulations 2009 (the Payment Services Regulations) include requirements for banks and other payment institutions to provide information to the consumer about charges, interest and exchange rates on the accounts and these are reflected in the Central Bank's Consumer Protection Code 2012, which contains requirements in relation to the provision of information on charges to consumers. The website of the Competition and Consumer Protection Commission (CCPC) also lists the various charges imposed by the various financial institutions in Ireland for different types of transactions www.ccpc.ie.
Irish financial institutions have varying models for charges and have different regimes and conditions under which they are willing to grant transaction free banking. Individuals' use of their bank account will be specific to each individual and I would strongly encourage people to look at this comparison site with their specific circumstances in mind in order to decide which institution offers the best product for their pattern of account usage.
114. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which his Department continues to monitor the potential economic fallout in the event of a partial or entire United Kingdom exit from the European Union; if the full implications continue to be examined; and if he will make a statement on the matter. [7736/16]
Amharc ar fhreagraThe Government's position on developments in relation to British membership of the EU has been clearly articulated, in particular by the Taoiseach and the Minister of Foreign Affairs and Trade: we very much want the UK to remain an integral member of the Union.
This is important for both our economy and the ongoing development of the excellent bilateral relations Ireland and the UK now enjoy; independent research indicates that Ireland is the EU Member State which would be most affected by any change in the EU/UK relationship.
In addition to the important bilateral considerations, we also believe that the EU itself is stronger and more effective with the UK as a member.
The UK's continued membership of the Union is therefore a matter of strategic importance for the Government. In this regard, Government Departments, including my own, have been working on this matter for some time. Under the Department of Finance/Economic and Social Research Institute (ESRI) research programme agreement, my Department commissioned research to be undertaken on scoping the potential economic implications on Ireland of a change in the EU/UK relationship. The research was published on 5 November 2015 and is an important contribution to understanding the potential issues arising.
My Department, and other Government Departments, are continuing our assessment of all the issues involved in protecting Ireland's interests and we are continuing to explore the potential risks and to plan accordingly in the period up to 23 June 2016.
116. Deputy Richard Boyd Barrett asked the Minister for Finance to provide a report on the implementation of the Committee of Public Accounts recommendations in relation to wards of courts' funds that were lost in the crash. [7761/16]
Amharc ar fhreagraIn response to the Deputy's question I wish to advise him that the matter he raises is one, in the first instance, for the Court Service which falls within the policy remit of my colleague the Minister for Justice and Equality.
I understand that the Public Accounts Committee examined and reported on issues related to Wards of Court last year, including relating to the management and investment of the funds awarded to Wards of Court by the Courts. Consideration and implementation of these recommendations is a matter for the Courts Service, and I am advised by the Court Service that the recommendations made by the Public Accounts Committee are under active consideration and that the Minute of the Minister for Public Expenditure and Reform in response to the Report of the Committee is to issue shortly.
117. Deputy Róisín Shortall asked the Minister for Finance his plans to require insurance companies to engage in far greater data sharing as occurs in Northern Ireland so that fraud can be reduced and to make it easier for consumers to switch to a competitor. [7771/16]
Amharc ar fhreagraMy Department has commenced a Review of Policy in the Insurance Sector. This is being undertaken in consultation with the Central Bank, Departments and Agencies and other relevant stakeholders.
The objective of the Review is to recommend measures to improve the functioning and regulation of the insurance sector. This Review will include an examination of the factors contributing to the cost of insurance, which will include the issue of availability of insurance data.
Work on this review is currently underway, with the first phase examining the framework for motor insurance compensation in Ireland in conjunction with the Department of Transport, Tourism and Sport.
Work on the Review of Policy in the Insurance Sector will continue over the coming months and is expected to be completed by the end of this year. The final report will be presented to Government in due course.
118. Deputy Brendan Griffin asked the Minister for Finance if he will reconsider reducing the rate of value added tax payable by ice cream parlours to 9% in recognition of the labour intensive nature of the business and the heavy dependency that such businesses have on tourism; and if he will make a statement on the matter. [7788/16]
Amharc ar fhreagraThe standard rate of VAT, currently 23%, applies to the sale of ice-cream, as it does to most confectionery and sugary foods. In this respect, ice-cream parlours selling ice cream to customers must charge the 23% rate on the supply of ice-cream. Where ice-cream is provided as part of a meal by a caterer, such as a restaurant, the meal, including the ice-cream element, is liable to VAT at the 9% reduced rate.
119. Deputy Michael Healy-Rae asked the Minister for Finance the status of the case of persons (details supplied) in County Kerry who would like clarification on consolidating their farms without incurring capital gains tax; and if he will make a statement on the matter. [7805/16]
Amharc ar fhreagraI am informed by the Revenue Commissioners that section 599 of the Taxes Consolidation Act 1997 gives relief from Capital Gains Tax for the disposal by a person, who has attained the age of 55, of a farm to his/her children.
There is provision for a clawback of the relief where the assets transferred to the children are subsequently disposed of by the children within 6 years of the date of transfer. In any such case, the capital gains tax which would have been charged on the transferor (if the relief had not applied) is assessed and charged on the children, in addition to the tax on any gain made by the children on his/her disposal of the assets.
The issues around whether the beneficiaries of the gifted land in this case would qualify for the farm restructuring relief provided for in section 604B of the Taxes Consolidation Act 1997, in the circumstances outlined in the details supplied by the Deputy, are being examined by the Revenue Commissioners. I will write to the Deputy again in this matter shortly when Revenue's considerations are completed.
120. Deputy Fergus O'Dowd asked the Minister for Finance the number of persons qualifying for the rent-a-room tax relief for each year since 2014; and if he will make a statement on the matter. [7821/16]
Amharc ar fhreagraI am advised by the Revenue Commissioners that a Costs of Tax Expenditures Table is available on the Revenue Statistics webpage at http://www.revenue.ie/en/about/statistics/costs-expenditures.html.
This table displays the estimated cost, in terms of revenue forgone, as well as the numbers who availed of the main tax credits and reliefs, including the rent a room relief. In regards to the Deputy's question, the latest information on rent a room relief is for the year 2013.
121. Deputy John McGuinness asked the Minister for Public Expenditure and Reform his plans to recruit guides and grounds staff for Kilkenny Castle for the tourist season; and if positions will be offered on a permanent or part-time basis. [7315/16]
Amharc ar fhreagraThe OPW proposes to recruit a total of 18 Seasonal Guides at Kilkenny Castle for the coming summer period. These positions will be offered on short term contracts of varying lengths ranging from 5 to 9 months and will supplement the existing Permanent Guide workforce during the peak summer months.
The Permanent Guide cohort at Kilkenny now numbers 10 in total, 2 new Permanent appointees having commenced there since December 2015.
There are 7 existing grounds staff working at the Kilkenny Castle demesne. There are no plans to recruit additional external staff on either a temporary or permanent basis in the short term.
Kilkenny Castle is open all year round as follows:
March 9.30-17.00
April-May 9.30-17.30
June-August 9.00-17.30
September 9.30-17.30
October-February 9.30-16.30
122. Deputy John McGuinness asked the Minister for Public Expenditure and Reform the cost to date of the 2016 general election; if all the costs are now accounted for; and if he will make a statement on the matter. [7319/16]
Amharc ar fhreagraHaving regard to the cost of the 2011 general election €29m, it is estimated that the cost of the 2016 election could be around €29m. The final certified accounts after an election would not normally be available until around 6 months after the holding of the election poll.
To date €14m has been advanced to Returning Officers whose costs include staff costs and other disbursements such as conveying polling screens, ballot boxes, and hiring and fitting out polling stations and count centres.
Payments from the Central Fund in respect of election expenditure are reconciled so that any outstanding expenses incurred over and above advances are paid or unspent balances are returned.
123. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the status of flooding in an area (details supplied) in County Kerry; and if he will make a statement on the matter. [7413/16]
Amharc ar fhreagraLocal flooding issues are a matter in the first instance for each local authority to investigate and address. They may carry out flood alleviation works using their own resources or, if necessary, apply to the Office of Public Works (OPW) for funding under the Minor Flood Mitigation Works and Coastal Protection Scheme. This administrative scheme generally applies to relatively straightforward cases of flooding where a solution can be readily identified by a local authority and achieved in a short time frame. Any application received will be considered in accordance with the scheme eligibility criteria, and having regard to the overall availability of resources for flood risk management. The scheme's eligibility criteria can be viewed on the OPW website www.opw.ie.
The OPW approved funding of €144,000 under the Minor Works scheme to Kerry County Council (KCC) in 2014 with a further €58,520 approved in 2016 for flood mitigation works on the Glenshearoon Stream and tributaries of the River Maine at Castleisland. The advancement of these works is a matter for the Council. €10,567 of the allocated funding has been drawn down to date. I am advised that some of the works in the application have been undertaken and that other works are to take place in the near future.
124. Deputy Finian McGrath asked the Minister for Public Expenditure and Reform his views on correspondence (details supplied) regarding Government contracts being given to companies that are registered in tax haven countries; and if he will make a statement on the matter. [7435/16]
Amharc ar fhreagraPublic procurement in Ireland is governed by International, EU and National Law and National Guidelines. The EU Treaty principles of equal treatment and non-discrimination, transparency, mutual recognition, proportionality, free movement of goods and services and the right of establishment must be observed on all tenders. The main purpose of the EU public procurement regime is to open up the market and to ensure the free movement of supplies, services and works within the EU having regard to Treaty of Rome principles including transparency, proportionality and equal treatment.
Public procurement procedures require all applicants to meet certain standards when applying for public contracts. The criteria upon which contracting authorities may exclude applicants from the award procedure of public contracts are set out in Regulation 53 of SI 329 of 2006 European Communities (Award of Public Contracts) Regulations 2006 and Article 45 and Recitals (34) and (43) of 2004/18/EC, the EU Directive on the co-ordination of procedures for the award of public works contracts, public supply contracts and public service contracts. A contracting authority is required to exclude from tendering any tenderers who to their knowledge have been convicted of specified offences, including corruption, fraud, money laundering, and participation in a criminal organisation. The law also includes various permissible grounds for the exclusion of a tenderer from a procurement competition at the contracting authority's discretion, including bankruptcy/insolvency, grave professional misconduct, serious misrepresentation, and non-payment of tax or social security.
In relation to tax compliance, it is a condition of award of all public contracts above €10,000 (inclusive of VAT) within any 12-month period that the successful applicant provides to a contracting authority either a current Tax Clearance Certificate or demonstrate a satisfactory level of subcontractor tax compliance in the case of the construction, forestry or meat processing sectors, who are subject to Relevant Contracts Tax (RCT). The same tax clearance requirement applies to any non-resident contractor being awarded a public contract.
Payments under a contract are at all times conditional on compliance with these requirements. It is the responsibility of each contracting authority to ensure that tenderers comply with all the requirements of the process.
125. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which any assessment has been done throughout the country with a view to identifying areas of potential flooding which could be remedied by way of improved drainage; and if he will make a statement on the matter. [7756/16]
Amharc ar fhreagraLocal flooding issues are, in the first instance, a matter for each local authority to investigate and address. They may carry out flood alleviation works from their own resources or apply to the Office of Public Works (OPW) for funding under the Minor Flood Mitigation Works and Coastal Protection Scheme. This purpose of this scheme is to provide funding to local authorities to undertake minor flood mitigation works or studies to address localised flooding and coastal protection problems within their administrative areas. The scheme generally applies to relatively straightforward cases where a solution can be readily identified and achieved in a short time frame. Any application received will be considered in accordance with the scheme eligibility criteria, which comprise economic, social and environmental criteria including a requirement that any measures are cost beneficial, and having regard to the overall availability of resources for flood risk management.
The core strategy for addressing areas at potentially significant risk from flooding, is the OPW's Catchment Flood Risk Assessment and Management (CFRAM) Programme. The Programme is focusing on 300 Areas for Further Assessment (AFAs) including 90 coastal areas, mainly in urban locations nationwide, identified as being at potentially significant risk of and impact from flooding. It is the principal vehicle for implementing the EU Floods Directive and national flood policy.
The Programme, which is being undertaken by engineering consultants on behalf of the OPW working in partnership with the local authorities, involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of flood risk management plans.
Good progress is being made on the CFRAM Programme, the draft mapping is now being finalised following completion of the national statutory public consultation on 23rd December, 2015. Work on the development of preliminary options to address flood risk is underway. Following finalisation of the mapping and the identification of flood risk management options, the final output from this important project will be integrated Flood Risk Management Plans containing specific measures that can address in a comprehensive and sustainable way the significant flood risks identified. The Plans, which are scheduled for completion by the end of 2016, will include a prioritised list of measures, both structural and non-structural, to address flood risk in an environmentally sustainable and cost effective manner. Further information on the Programme is available on www.cfram.ie.
The Government recently announced increased levels of investment in the area of flood relief as part of the overall Capital Investment Plan 2016-2021 and this investment programme will allow for consideration of measures arising from the Flood Risk Management Plans.
The OPW's Capital Investment Programme has already seen 36 major flood relief schemes implemented since 1995. The Government has allocated €80.7m in 2016 for the OPW's overall Flood Risk Management Programme of which €52.5m is for the continued implementation of the comprehensive programme of capital flood relief works. There are currently five major schemes at construction in Bray Co. Wicklow, River Dodder Dublin, South Campshires Dublin, Ennis Lower, and Phases 2, 3 and 4 in Waterford City. There are a further 26 schemes at design and planning stage and, of these, it is anticipated that construction works on schemes in Claregalway Co. Galway, Bandon and Skibbereen in Co. Cork, Templemore Co. Tipperary and Foynes Co. Limerick will be commenced this year.
Other schemes in the capital works programme will be advanced through the planning or Confirmation (Ministerial approval) processes and every effort will be made to also progress some of these schemes to construction in 2016.
The OPW has statutory responsibility for maintenance of the drainage works carried out by it under the Arterial Drainage Acts 1945 and 1995. Each year the OPW carries out work to approximately 2,000 km of channels and about 200 structures around the country as part of its ongoing and rolling arterial drainage maintenance programme. While the average cycle of maintenance is generally in the range 4 to 7 years, the OPW assesses annually the maintenance requirement.
Prior to the enactment of the Arterial Drainage Act 1945 various drainage works were carried out in locations around the country. Responsibility for maintenance of these works (known as Drainage Districts) rests with the relevant local authority in each case.
126. Deputy Louise O'Reilly asked the Minister for Public Expenditure and Reform the status of the report from the Office of Government Procurement into the use of social clauses in public contracts, particularly regarding the issuing of guidelines to local authorities in order to provide them with the ability to insert social clauses in local contracts; and if he will make a statement on the matter. [7328/16]
Amharc ar fhreagraThe Government is keen to explore the scope for including social clauses in public contracts were they are suited to the objective of the contract and therefore would have the greatest impact. In this context, the Office of Government Procurement (OGP) is examining social clauses with a view to assessing where they can be deployed to contribute to employment or training opportunities for long term unemployed. The purpose of this work is to:
- the provision of general guidance: and,
- identification of suitable contract clauses developed in conjunction with the Chief State Solicitor's Office;
It is important to adopt a targeted approach to the use of social clauses in contracts where employers are likely to be hiring additional workers to deliver the contract. This is likely to mitigate the risk of displacing workers already in employment while offering the opportunity of assisting with labour activation measures for the long-term unemployed.
Two examples of this approach currently in progress are the Grangegorman Development and Devolved Schools Build Programme. In relation to the latter, a clause has been included in the Public Works contracts which require that
- 10% of the aggregate time worked on site to have been undertaken by individuals who have been registered on a national unemployment register within the EU for a continuous period of at least 12 months immediately prior to their employment on the project.
- 2.5% of the aggregate time worked on site to have been undertaken by individuals who are employed under a registered scheme of apprenticeship or other similar national, accredited training or educational work placement arrangement.
Experience of this pilot have been positive. It is important to learn from such practical experience of where community benefit clauses are utilised. This is a complex area. It is important to develop a robust structure that will assist the contracting authority to develop the correct clause and to provide the support from the appropriate agency to aid the company in implementing the clause. I have instructed the OGP to issue practical guidance designed to assist Contracting Authorities to carry out this important role in a consistent manner. I expect that this guidance to issue shortly after the transposition of the new public procurement Directives.
127. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform the funding that has been allocated to Cavan County Council to date in 2016 to carry out essential drainage work; if it is proposed to allocate further funding to the council and, if so, to outline the drainage work to be undertaken; and if he will make a statement on the matter. [7402/16]
Amharc ar fhreagra128. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform the funding that has been allocated to Monaghan County Council to date in 2016 to carry out essential drainage work; if it is proposed to allocate further funding to the council; if so, to outline the drainage work to be undertaken; and if he will make a statement on the matter. [7403/16]
Amharc ar fhreagraI propose to take Questions Nos. 127 and 128 together.
It is a matter for Cavan and Monaghan County Councils in the first instance to identify and address minor or localised flooding issues in their counties. It is open to the Councils to undertake any local flood mitigation works using their own resources or, if necessary, to submit an application for funding under the Office of Public Works' (OPW) Minor Flood Mitigation Works & Coastal Protection scheme.
To date in 2016, the OPW has approved funding of €52,530 to Monaghan County Council under the above scheme in respect of proposed projects at Drummillard/Lakeview, Castleblaney (€37,530) and Corleck/Annahaia (€15,000 for study).
Applications for funding from Monaghan County Council in respect of two other proposed projects at the Bunnoe river and at Donaghmoyne (Carrickmacross) are currently being assessed by OPW engineering staff. No applications for funding from Cavan County Council are currently to hand in the OPW.
All applications for funding under the Minor Works administrative scheme are assessed in accordance with the eligibility criteria for the scheme which includes a requirement that all proposed works are cost beneficial and subject to the availability of funding for flood risk management. The eligibility criteria for the scheme are published on the OPW's website www.opw.ie
The OPW only funds drainage works related to fluvial or river flooding. Any necessary works to address flooding caused by pluvial or inadequate surface water drainage systems are the responsibility of the local authority. The local authority is responsible also for the ongoing maintenance of certain watercourses within Drainage Districts in the county.
The OPW carries out its own programme of Arterial Drainage Maintenance to a total of 11,500km of river channel and approximately 730km of embankments nationally. These maintenance works relate to arterial drainage schemes completed by the OPW under the Arterial Drainage Acts 1945, whose purpose was primarily to improve the drainage of agricultural lands. The OPW has a statutory duty to maintain the completed schemes in proper repair and in an effective condition. The annual maintenance programme typically involves some clearance of vegetation and removal of silt build-up on an average five-yearly cycle.
The planned OPW maintenance programme in Co Cavan in 2016 includes work on some 18km on the Inny scheme, approximately 7km on the Boyne scheme and 3km Glyde and Dee scheme.
The planned OPW maintenance programme in Co Monaghan in 2016 includes work on approximately 65km of the Monaghan Blackwater Arterial Drainage Scheme and some 35km of the Glyde and Dee scheme.
129. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform the regional breakdown of all members appointed by the Government or him to State boards, agencies and bodies in 2015 and to date in 2016, broken down by agency and by regions (details supplied); and if he will make a statement on the matter. [7483/16]
Amharc ar fhreagraIn answer to the Deputy's question the following table details all members appointed to State Boards, agencies and bodies under the aegis of my Department in 2015. There were no appointments made in 2016.
|
Year |
Board |
Name of Board Member |
Region* |
|
2015 |
Public Appointments Service |
Ms. Oonagh McPhillips |
Dublin |
|
2015 |
Public Appointments Service |
Mr. Damien McCallion |
Connaught |
|
2015 |
Public Appointments Service |
Mr. David Cagney |
Dublin |
|
2015 |
Interim Public Sector Procurement Board* |
Mr Martin Sisk |
Dublin |
*This is an interim board set up in advance of the OGP being established on a statutory basis.
