Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Thursday, 2 Feb 2017

Written Answers Nos. 149-165

Rent Controls

Ceisteanna (149, 153)

Catherine Murphy

Ceist:

149. Deputy Catherine Murphy asked the Minister for Housing, Planning, Community and Local Government his plans to publish all reports and related documentation received by him from the Residential Tenancies Board and the Housing Agency relating to the extension of rent pressure zones; and if he will make a statement on the matter. [5082/17]

Amharc ar fhreagra

Catherine Murphy

Ceist:

153. Deputy Catherine Murphy asked the Minister for Housing, Planning, Community and Local Government the cost of all contracted work in the analysis of data or any other work associated with the designation of rent pressure zones; and if he will make a statement on the matter. [5110/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 149 and 153 together.

The Planning and Development (Housing) and Residential Tenancies Act 2016 amends the Residential Tenancies Act 2004 to provide that the Housing Agency, in consultation with housing authorities, may make a proposal to the Minister that an area should be considered as a Rent Pressure Zone. Following receipt of such a proposal, the Minister requests the Director of the Residential Tenancies Board (RTB) to conduct an assessment of the area to establish whether or not it meets the criteria for designation and to report to the Minister on whether the area should be designated as a Rent Pressure Zone.

The reports received from the RTB and the Housing Agency in relation to the designation of further rent pressure zones are available on the websites of the Residential Tenancies Board (RTB) at http://www.rtb.ie/rentzones and the Housing Agency at https://www.housingagency.ie/getattachment/Our-Publications/Private-Rented-Sector/17-01-24-Rent-Pressure-Zones-lt-to-Minister-Coveney.pdf.

The cost to the Housing Agency and to the RTB of performing their functions under the Act is a matter for the agencies involved and my Department does not collate such information. The Clerk of the Dáil has requested that arrangements be put in place to facilitate the provision of information by State Bodies to members of the Oireachtas. Following the issue of Circular LG (P) 05/16 on 20 September 2016 from my Department, the RTB and the Housing Agency have set up dedicated email addresses for this purpose at OireachtasMembersQueries@rtb.ie and publicreps@housingagency.ie, respectively.

Departmental Funding

Ceisteanna (150)

Jan O'Sullivan

Ceist:

150. Deputy Jan O'Sullivan asked the Minister for Housing, Planning, Community and Local Government if his Department spent its full capital allocation of €505 million for 2016; and if he will make a statement on the matter. [5091/17]

Amharc ar fhreagra

Freagraí scríofa

The Further Revised Estimates Volume for Public Services 2016, published by the Department of Public Expenditure and Reform, provided for gross capital expenditure of €505.244 million (inclusive of €32m in unspent funding from 2015) in respect of my Department in 2016.

The provisional gross capital outturn for my Department was €496.029 million last year. €464m ( 94% of total spend) was expended in support of a range of capital housing programmes. No savings arose in the overall housing capital provision; in fact, €3 million in savings from other programmes in my Department were applied to supplement the 2016 housing capital provision.

The main source for the Capital savings in 2016 were in the Water, Community and Administration programmes.

Foreshore Licence Applications

Ceisteanna (151)

Noel Grealish

Ceist:

151. Deputy Noel Grealish asked the Minister for Housing, Planning, Community and Local Government the names and the relevant qualifications of the members of the marine licence vetting committee tasked with advising him on the 35-year foreshore lease application by the Marine Institute in respect of the marine and renewable test energy site off An Spidéal, in Galway Bay; if any employee of the Marine Institute is sitting on the committee; when he expects the committee to report; when he expects a decision to be made on the application; and if he will make a statement on the matter. [5100/17]

Amharc ar fhreagra

Freagraí scríofa

The Marine Licence Vetting Committee is in the process of being convened. The details of the committee will be provided when they are available. As the applicant in the case concerned is the Marine Institute, no member of staff of the Marine Institute will be involved in any way with the assessment of this application. The Marine Licence Vetting Committee is expected to meet to assess this application later in February with a decision to follow shortly thereafter.

Rent Controls

Ceisteanna (152)

Michael McGrath

Ceist:

152. Deputy Michael McGrath asked the Minister for Housing, Planning, Community and Local Government his plans to ensure that all of a town (details supplied) in County Cork is included in the extension of the rent pressure zones; and if he will make a statement on the matter. [5108/17]

Amharc ar fhreagra

Freagraí scríofa

The Planning and Development (Housing) and Residential Tenancies Act 2016 amends the Residential Tenancies Act 2004 to provide that the Housing Agency, in consultation with housing authorities, may make a proposal to the Minister that an area should be considered as a Rent Pressure Zone. Following receipt of such a proposal, the Minister requests the Director of the Residential Tenancies Board (RTB) to conduct an assessment of the area to establish whether or not it meets the criteria for designation and to report to the Minister on whether the area should be designated as a Rent Pressure Zone. For the purpose of the Act, ‘area’ is defined as either the administrative area of a housing authority or a local electoral area within the meaning of section 2 of the Local Government Act 2001. There is no provision for any other type of area to be designated as a Rent Pressure Zone.

For an area to be designated a Rent Pressure Zone, it must satisfy the following criteria set out in section 24A(4) of the Residential Tenancies Act 2004 (as amended by section 36 of the Planning and Development (Housing) and Residential Tenancies Act 2016):

(i) The annual rate of rent inflation in the area must have been 7% or more in four of the last six quarters; and

(ii) The average rent for tenancies registered in the area with the RTB in the last quarter must be above the average national rent (the National Indicative Rent in the RTB’s Rent Index Report) in the last quarter.

Following the enactment of the Planning and Development (Housing) and Residential Tenancies Act 2016, the Housing Agency reviewed the rental markets in certain counties nationally and identified nine housing authorities containing electoral areas that could potentially be Rent Pressure Zones. The Housing Agency consulted with the relevant housing authorities regarding their views on the rental markets, including housing demand and supply, and their experiences in relation to the Rental Accommodation Scheme (RAS), the Housing Assistance Payment (HAP), trends in relation to both general housing needs and homelessness and other relevant issues.

On the basis of this analysis, five housing authority areas were examined in more detail by the Housing Agency to identify local electoral areas with significant rental pressures. The areas of Galway County, Limerick City and County, Louth and Waterford City and County were excluded by the Housing Agency from this more detailed analysis as the preliminary analysis had indicated that these areas would not currently meet the criteria for designation as Rent Pressure Zones.

Accordingly, on 24 January 2017 the Housing Agency proposed that 15 Local Electoral Areas in the following five housing authority areas should be considered by the RTB for designation: Cork County, Galway City, Kildare, Meath and Wicklow. On foot of the proposal from the Housing Agency, and in accordance with section 24A(2) of the Residential Tenancies Act 2004 (as amended), I requested the Director of the RTB to make a report to me as to whether these areas met the criteria for designation as Rent Pressure Zones.

On 26 January 2017, I received a report from the RTB confirming that 12 out of the 15 Local Electoral Areas examined met the criteria. As required by section 24A(5) of the Act, I made Orders designating the 12 Rent Pressure Zones on 26 January 2017. The Orders came into effect on 27 January 2017. Details of the areas that met the criteria and have been designated as Rent Pressure Zones are available on my Department’s website at the following link: http://www.housing.gov.ie/housing/private-rented-housing/coveney-designates-new-rent-pressure-zones.

The Local Electoral Areas of Cobh, Maynooth and Greystones were found not to meet the criteria.

Under the Act, I have no further role or discretion in proposing areas for designation as Rent Pressure Zones or in deciding whether they should be designated. The designation process is independent and based on clear objective criteria and quantifiable evidence.

The Housing Agency will continue to monitor the rental market and may recommend further areas for designation. Where, following the procedures set out in the Act, it is found at a future date that additional areas meet the criteria, they will be designated as rent pressure zones.

Question No. 153 answered with Question No. 149.

Wastewater Treatment Facilities Inspections

Ceisteanna (154)

Kevin O'Keeffe

Ceist:

154. Deputy Kevin O'Keeffe asked the Minister for Housing, Planning, Community and Local Government if he will consider granting special permission to an authority to carry out an inspection (details supplied). [5118/17]

Amharc ar fhreagra

Freagraí scríofa

Section 70 of the Water Services Act 2007 places a duty of care on the owner of premises to ensure that their waste water treatment systems are kept so as not to cause, or be likely to cause, a risk to human health or the environment, including water, the atmosphere, land, soil, plants or animals, or create a nuisance through odours. The duty of care provisions have been augmented by the Water Services (Amendment) Act 2012 and associated regulations. Any person who considers that his or her treatment system constitutes, or may constitute, a risk to human health or the environment is responsible for having any necessary remediation works carried out without delay. The Act assigns responsibility to the Environmental Protection Agency (EPA) to make a National Inspection Plan (NIP) for domestic wastewater treatment systems and neither I nor my Department has any direct role in monitoring the implementation of the plan by the local authorities.

Local authorities carry out inspections of septic tanks and similar systems for a variety of reasons, including water quality issues at drinking water sources or within designated shellfish or bathing water catchments and arising from reports of pollution from members of the public. Separately, inspections are carried out based on the EPA's National Inspection Plan 2015-2017: Domestic Waste Water Treatment Systems, which uses a risk-based methodology for the selection of systems for inspection, taking into account factors such as densities of individual treatment systems across the numerous hydrological and geological settings in Ireland and the locations of sensitive groundwater or surface water receptors. Selection of treatment systems for inspection under the EPA’s plan is carried out by the local authorities using an IT system developed by the EPA. Householders cannot request inspections of their own treatment systems. It is a matter for the local authority, using the systems available to it, to select relevant septic tanks for inspection.

The Domestic Waste Water Treatment Systems (Financial Assistance) Regulations 2013, a copy of which is available in the Oireachtas library, brought into operation a grants scheme to assist with the cost of remediation of septic tanks and domestic waste water treatment systems which are deemed, following inspection under the EPA’s National Inspection Plan and the subsequent issue of an Advisory Notice by the local authority, to require repair or upgrading. Full details of the scheme, including eligibility criteria, are set out in the explanatory leaflet and application form published on my Department’s website at: http://www.housing.gov.ie/water/water-quality/domestic-waste-water-systemsseptic-tanks/domestic-waste-water-treatment-0.

Rental Sector

Ceisteanna (155)

Pat Casey

Ceist:

155. Deputy Pat Casey asked the Minister for Housing, Planning, Community and Local Government his Department's guidelines and regulations for a company (details supplied); the timeframe for the working group to report on the matter; and if he will make a statement on the matter. [5163/17]

Amharc ar fhreagra

Freagraí scríofa

On 13 December 2016, Government approved the publication of a Strategy for the Rental Sector, which delivers on a commitment made under Pillar 4 of Rebuilding Ireland. The strategy is structured around 4 key areas: security, standards, supply and services. The measures under these four headings will be implemented through the 29 actions contained in the Strategy.

In terms of supply, the focus in the strategy is on maintaining existing levels of rental stock and encouraging investment in additional supply. The overarching objective of the strategy is to increase supply and support the development of a stable, strong and viable rental sector offering true choice for households, investment opportunities for providers and reflecting the rights and responsibilities of tenants and landlords.

There are shortages in the supply of rental accommodation in key locations, particularly in urban areas. In some of these areas there is also significant demand for transitory short-term accommodation. In this context, easier access to short term rentals at higher prices may be an attractive option for landlords. However, a recent determination by An Bord Pleanála in a particular case has determined that the exclusive use of a residential apartment for short-term holiday lettings is a material change of use requiring planning permission.

My Department has, by way of Circular letter PL12/2016 of 22 December 2016, brought this determination to the attention of all planning authorities to ensure that they are aware of:

- the grounds on which the Board reached its decision,

- the planning implications in terms of the requirement for such commercial use of residential units to be the subject of an application for planning permission, and

- the importance of a proactive approach to planning enforcement generally in this regard.

A copy of the Circular letter is available on my Department’s website at the following link: http://www.housing.gov.ie/sites/default/files/publications/files/pl_12-16_aph_6-16_recent_an_bord_pleanala_decision_on_short_term_lettings.pdf

The implications of this case have raised a number of regulatory and other related issues, such as tax liability, residential tenancy regulation, support for tourism, and planning. The issue was considered in the preparation of the recently published Strategy for the Rental Sector and, with a view to providing more information on the scale and nature of the issue and full clarity regarding the appropriate regulatory approach to be adopted by relevant statutory authorities in relation to short-term tourism-related lettings, my Department, as provided for in the strategy, is establishing a working group, comprising representatives of relevant stakeholders including local authorities, relevant Departments, public bodies and other interests in the area, to consider the disparate issues involved and report in Quarter 2 2017.

Departmental Communications

Ceisteanna (156)

Michael McGrath

Ceist:

156. Deputy Michael McGrath asked the Minister for Housing, Planning, Community and Local Government if he or any Minister of State in his Department uses a personal e-mail account for work purposes; the security controls that are in place relating to the use of personal e-mail accounts for Department related business; if his Department has a policy on this matter; and if he will make a statement on the matter. [5253/17]

Amharc ar fhreagra

Freagraí scríofa

I refer to the reply to Question No. 240 of 13 December 2016.

Ministers of State Catherine Byrne and Damien English have both confirmed that they do not use non-Departmental personal email accounts for work purposes.

My Department does allow staff to access personal web-based email accounts from the network, but does not permit the use of such personal email accounts for Departmental confidential information.

Commencement of Legislation

Ceisteanna (157)

Róisín Shortall

Ceist:

157. Deputy Róisín Shortall asked the Minister for Housing, Planning, Community and Local Government the Acts or sections or other provisions of Acts, coming wholly or partly under the auspices of his Department, or for the commencement of which his Department is wholly or partly responsible, which are not in force and which require the future making of a commencement order; if, in each case, it is intended to make such an order; if so, when; the reason for the failure to make such an order to date; and if he will make a statement on the matter. [5268/17]

Amharc ar fhreagra

Freagraí scríofa

The information requested is being compiled and will be forwarded to the Deputy in accordance with Standing Orders.

The following deferred reply was received under Standing Order 42A

The information sought in relation to legislation coming within my Department’s remit has now been compiled and is set out in the following table:

Act

Sections/

Chapters not in force or commenced

Intention to commence Y/N

Date for commence-

ment

Reason not yet commenced

Electoral Act 1997

Section 79

Not immediately planned

N/A

Section 79 of the Electoral Act 1997 provides for amendments to electoral law which would allow for greater flexibility in relation to when the counting of votes might commence and when refreshment breaks might be taken at Dáil and Presidential elections and at referendums. The current arrangements in relation to the counting of votes and refreshment breaks at these elections and at referendums are considered to be satisfactory. The need to commence section 79 of the Electoral Act 1997 will be kept under review.

Electoral (Amend-

ment)

2004 Act

Sections 5(1) – (3),(5) and (6); sections 6 -16 and 30-32; Schedules 1-4.

No

N/A

These provisions relate to electronic voting and are obsolete.

Environ-

ment (Miscellan-

eous Provisions) Act 2011

Section 49

Yes

Not determined

Implications for the Official Languages Act 2003

Finance Act 1976

Sections 68-70, 72 and 75

No

N/A

Provisions relating to the continuous liability for motor tax. These provisions were superseded by an administrative process for declaring vehicles off the road retrospectively in the mid-1990s and subsequently by the provisions contained in the Non-Use of Motor Vehicles Act 2013, which introduced prospective declarations of non-use of a vehicle.

Environ-

ment (Miscellan-

eous Provisions) Act 2015

Section 17

Yes

Not determined

Section gives regulation making powers related to motor tax. Section will commence as the need for relevant secondary legislation arises.

Housing Act 1966

Section 115

No

N/A

This provision is no longer required in view of section 177 of the Local Government Act 2001.

It is intended to repeal this provision at the next available opportunity.

Housing (Miscellan-

eous Provisions) Act 2002

Section 11

No

N/A

This provision is no longer required as it related to the New House Grant which was abolished with effect from 14 Nov 2002 with the deadline for of a written request for payment extended to 2 April 2004.

Housing (Miscellan-

eous Provisions) Act 2009

Section 14-18

Housing Services Plans

Sections 23- 27 (Rental Accommodation Arrangements)

Section 28

Management and control functions of housing authorities

Section 29

Section 30

Delegation of management and control functions

Section 31

Section 32(9)

Section 64(9)(a)

Part 5: sections 78 to 96. New Affordable Dwelling Purchase Arrangements

Section 97 and 98

Section 99

Section 7 and Schedule 1 partially uncommenced -

Repeals

Section 8 and Schedule 2 partially uncommenced -

Amendment of other enactments

Not at this time

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Not at this time

Not at this time

Not at this time

As and when the related uncommenced provision is commenced

As and when the related uncommenced provision is commenced

N/A

Not determined

Not determined

Not determined

Not determined

Not determined

Not determined

Not determined

N/A

N/A

N/A

Various

Various

It is considered that the main p priority at this time is to deliver on the Government’s Action Plan for Housing, Rebuilding Ireland.

Dependent on the commencement of section 31 of the 2009 Act concerning rent schemes and charges.

Existing statutory authority for LAs to enter into RAS contract arrangements is provided in section 19 of the 2009 Act.

Commencement of this provision is dependent on the commencement of section 31 (Rent schemes and charges)

This section concerns a requirement for standardised written tenancy agreements which comply with Schedule 3 of the Act. Housing authorities already require written tenancy agreements in practice - 1980 Regulations provide for minimum requirements for these agreements. Authorities have generally found these adequate for their requirements.

Section 29 will standardise and modernise the approach taken in this area.

Commencement of this provision is dependent on the commencement of section 31 (Rent schemes and charges)

Commencement of section 31 is dependent on the making of Regulations in relation to rent schemes. Considerable work has been carried out by the Department in developing a draft framework for a harmonisation of the approach to be taken by local authorities in regard to various aspects of rent schemes. This work is now being examined further in the light of the broader commitment given in the Rebuilding Ireland Action Plan for Housing and Homelessness, to review the disparate systems of differential rent for social housing in place across local authorities. The review will be completed by the end of Q2 2017. The determination of an appropriate timeline for commencement of the section will be made at that time.

Related to section 31 – rent

Related to section 31 – rent

In 2011 the Government announced the standing down of the provision of Affordable Housing (the 1999 Affordable Housing Scheme, affordable housing under Part V of the Planning and Development Act 2000, and the Affordable Housing Initiative).

These provisions provide for a claw back in the case of the resale, before 20 years, of a site provided to a qualified purchaser by a housing authority at a purchase price less than the market value.

In the years since this legislation, a number of reforms of the scheme have been considered and implemented. Further reforms are now being examined in the context of Programme for Government and Rebuilding Ireland commitments. In the context of those reforms, the commencement of the provision will be examined shortly.

Relates to various uncommenced provisions

Relates to various uncommenced provisions.

Housing (Miscellan-

eous Provisions) Act 2014

Part 4 - Section 41(4): Designation of areas where no further dwellings will be approved for housing assistance

Part 4 - Section 44:Payment to housing authority by HAP beneficiary of rent contribution under s. 31 of 2009 Act (ss. (1)) and Prescription of manner of payment of rent contribution (ss. (2))

Part 4 - Section 47:Payment of HAP in respect of certain beneficiaries under the Capital Assistance Scheme

Part 4 - Section 48:Internal review, on request, of HAP decisions in prescribed decision classes

Section 20

Section 53

Section 54(1)

Under consideration

Yes

Yes

Yes

Yes

Yes

Yes

To be determined

Not determined

2017

2017

Not determined

Not determined

Not determined

To be brought forward once scheme is available nationally.

Dependent on the commencement of section 31 of the 2009 Act concerning rent schemes and charges.

To be brought forward once scheme is available nationally. Provision has been made for such households through the RAS and SHCEP schemes.

To be brought forward once scheme is available nationally. Appeals currently being dealt with under a local authority’s Customer Charter.

Inserts new section 29A into 2009 Act – amendment of tenancies. Depends on commencement of section 29 of Housing (Miscellaneous Provisions) 2009.

Direct deduction of rent from Department of Social Protection payments was provided for in order to ensure the efficient collection of differential rents for Social Housing Tenants who are in receipt of a primary payment from the Department of Social Protection. This was particularly relevant in the case of Housing Assistance Payment (HAP). However, amendments made to the Household Budget scheme have greatly assisted in the efficient collection of rents from such households, relieving the urgency of the requirement to introduce a direct deduction service. It is intended to introduce Direct Deduction service in due course.

As above.

Residential Tenancies (Amendment) Act 2015

16(d), (g) and (3), 22 – 24, 59, 60(a) and (c), 61, 62(b)(iii), 63, 64, 65, 71-72

17(c)

34, 35, 37, 38, 43, 46, 48, 51(1)(b), 52(6), 53

57,58

Yes, subject to outcome of review underway

Yes

Yes

Yes

Not determined

Quarter 2, 2017

Quarter 3, 2017

Quarter 1, 2017

Delayed pending-

· review of legislative provisions for Deposit Protection under Action 28 of the Strategy for the Rental Sector, and

· assessment of resources of the RTB under Action 29, of the Strategy for the Rental Sector.

Planning and Develop-

ment (Amend-

ment) Act 2010

Paragraph (e) of section 74

Section 76

Yes

No

As soon as practicable

N/A

It is intended to commence this enactment as soon as practicable.

This enactment has been superseded by subsequent enactments and the intention is to repeal it as soon as practicable.

Urban Regeneration and Housing Act 2015

Section 34

Yes

Not Determined

It is intended to commence section 34 of the 2015 Act when Chapter 4 of Part 2 of the Housing (Miscellaneous Provisions) Act 2009, with which it is linked, is commenced

Planning and Develop-

ment (Housing) and Residential Tenancies Act 2016

Chapter 1 (sections 3 to 25) of Part 2

Chapter 2 (sections 26 and 27) of Part 2

Chapter 3 (sections 28 and 29) of Part 2

Sections 44, 45 and 48 of Part 3 and Part 3 of the Schedule

Section 49 of Part 3

Section 51

Yes

Yes

Yes

Yes

Yes

Yes

Not determined

May 2017

Not determined

Quarter 3, 2017

Quarter 1, 2017

Not determined

It is intended to commence sections 3 and 19, to the extent to which they have not yet been commenced, and the other sections in this part, in the near future.

It is intended to commence this section in the near future

It is intended to commence this section in the near future

Licensing of Indoor Events Act 2003

Parts I and II of the Act

No

N/A

Consultation with stakeholders in relation to drafting secondary regulations to be made under the legislation highlighted issues of practicality in attempting to license individual events, as distinct from licensing premises. A view was taken that the intended regulations were unworkable and duplicated existing licensing provisions for premises under other legislation. Parts I and II of the Act were never commenced and it is still not seen as practicable to make regulations of the type envisaged and there are no plans therefore to make a commencement order for this legislation.

Local Govern-

ment Act 2001

Section 22

Section 189, 190, 192-194(1),(2),(4),(5),(6)

195 and 196

Section 212-214

Section 223

Yes

Yes

Yes

Yes

Not Determined

Not Determined

Not Determined

Not Determined

Commencement of section conditional on the establishment of a commission to make recommendations on a number of local government issues.

Commencement requires the making of regulations which are being drafted.

Implications for existing legislation across a number of legislative codes.

Existing provisions need to be repealed before commencement of this section can proceed.

Local Govern-

ment (Miscellan-

eous Provisions) Act 2012, No. 17 of 2012

Section 10(b),(d) and (e) and section 11 (b), (c), (d), (f), (h), (i) and (l)

Governance provisions in relation to the Fire Services Council, Affordable Homes Partnership and Irish Water Safety

Yes

H2 2017

Other higher priority work arising.

Local Govern-

ment Reform Act 2014

Section 1 (23)

Yes

Not Determined

Commencement of section 48 requires that section 189 of the Local Government Act 2001 be first commenced (see above re Local Government Act 2001).

Water Services Act 2007

Sections 49, 63-67, 69, 77-90, 92, 104-106, Schedule 2 and part of sections 4,58, 70 and 107

Not determined

N/A

All water services legislation is under active review and legislative provisions are commenced, as and when required.

Water Services Act 2013

Sections 28 and 29

Not determined

N/A

All water services legislation is under active review and legislative provisions are commenced, as and when required.

Water Services (No.2) Act 2013

Section 29

Not determined

N/A

All water services legislation is under active review and legislative provisions are commenced, as and when required.

Water Services Act 2014

Section 11

Not determined

N/A

All water services legislation is under active review and legislative provisions are commenced, as and when required.

Pension Provisions

Ceisteanna (158)

Jim Daly

Ceist:

158. Deputy Jim Daly asked the Minister for Social Protection the measures he has planned to protect persons who have been contributing to a defined-benefit pension over their lifetime whose employers are now reneging on and seeking to convert the pension to a defined contribution pension; and if he will make a statement on the matter. [5043/17]

Amharc ar fhreagra

Freagraí scríofa

I am very much aware of the public concern highlighted by the recent publicity surrounding defined benefit schemes.

The provision of occupational pensions in this country is on a voluntary basis and depends on the willingness of employers to contribute to, and maintain schemes for their employees. Traditionally, many such schemes were organised on a defined benefit basis. However, in recent decades defined benefit provision has been under pressure because of volatility in the stock markets and increasing liabilities arising from demographic pressures, low interest rates, and regulatory requirements. Accountancy standards, which make pensions liabilities very apparent on a company's balance sheet, also contribute to the pressures under which defined benefit schemes are operating. During the financial crisis the decline of defined benefit pension schemes accelerated to the extent that the whole pension sector was possibly at risk.

As a consequence of all these factors, the movement from defined benefit to defined contribution schemes has become a feature of the pensions landscape, even in cases where firms are very profitable.

Almost all defined benefit schemes have a rule that allows the employer to cease contributions, usually after a notice period. There is no legislative obligation on the employer to make contributions and no further liability on the employer where contributions cease. Where changes to these schemes are being sought by employers, I am strongly of the opinion that they should first engage in discussions with the trustees and employee representatives. The introduction of a debt on employer would raise a range of issues including possible negative consequences for defined benefit schemes, some of which may not be beneficial for members.

Neither the Minister for Social Protection nor the Pensions Authority has the power under legislation to intervene to freeze the winding-up of a scheme or to compel the employer to make contributions to a scheme. However, over the last number of years the Government has amended pension legislation to protect the pension sector and to ensure fairer and more equitable outcomes for all scheme members. These changes make more resources of the scheme available in the initial distribution of assets to active and deferred scheme members.

At this stage, further regulation may only serve to add to the pressures on defined provision and could be counterproductive.

While there are strong arguments for the introduction of greater employer obligations, it is also the case that doing so now could result in certain less desirable side effects. These could include prompting well-funded schemes to wind up to avoid new obligations; threatening a company’s financial stability; rendering some employers insolvent; and/or giving a competitive advantage to employers who either never provided a pension and/or put defined contribution schemes in place.

While I have no immediate plans at this stage to bring forward amending legislation to enhance the provisions in the Pensions Act in relation to defined benefit schemes I would like to assure the Deputy that my Department and the Pensions Authority are closely monitoring developments in the DB sector and keep the need for legislative change under continuous review.

I hope this clarifies the matter for the Deputy.

Unemployment Levels

Ceisteanna (159)

Niall Collins

Ceist:

159. Deputy Niall Collins asked the Minister for Social Protection his targets to reduce long-term unemployment in terms of specific numbers and percentages in each of the years to 2020; the measures that will be taken to achieve this; and if he will make a statement on the matter. [5203/17]

Amharc ar fhreagra

Freagraí scríofa

Government policy to reduce unemployment is twofold. First, through policies set out in the Action Plan for Jobs, to create an environment in which business can succeed and create jobs; and second, through Pathways to Work to ensure that as many of these new jobs and other vacancies that arise in our economy are filled by people taken from the Live Register, and in particular the long-term unemployed.

Reflecting the impact of government policy, and the overall improvement in the labour market, long term unemployment continues to fall. The most recent data show that unemployment has fallen from a peak of 15% in 2012 to 7.1% in January 2017. The long-term unemployment rate peaked at 9.5% in Q1 2012 before falling to 4.2% in Q3 2016. At the latter date, the long-term unemployed accounted for 52% of all those unemployed, down from almost 65% in early 2012. The number of long term unemployed in Q3 2016 was 92,300; this compares to 204,300 in early 2012. Long-term unemployment fell by 18% during 2016, faster than the overall fall in unemployment of 13%.

Looking forward, in the context of Pathways to Work 2016-2020, one of the high-level targets adopted by the Government is to decrease long-term unemployment to 2.5% by 2020. Targets were not set for intermediate years. However, it seems clear based on the most recent developments in the labour market that the target for 2020 is now likely to be achieved or indeed improved on.

A set of milestones and metrics has been developed as indicators of progress in addressing the challenges and delivering on Pathways to Work 2016-2020. Progress on milestones and metrics are published on the Department of Social Protection website and the metrics themselves will be reviewed and updated on an annual basis to reflect the key challenges and issues being addressed under this strategy each year. The relevant data for 2016 targets and outcomes are set out in Table 1. Many of these will directly or indirectly impact upon the reduction of long-term unemployment over the period of the strategy to 2020.

Table 1: Pathways To Work Measures/Metrics and 2016 Targets

Measure/Metric

2016 Target Performance

2016 Performance (Actual)

Move 50,000 long term unemployed at the start of 2016 into employment by the end of 2020

20,000

26,000

Reduce the persistence rate (the rate at which short term unemployed people become long term unemployed) by 25% from 27% to 20% by the end of 2018

24%

N/A

Increase the exit rate of people on the Live Register for two years or more by 30% (to 52%) by the end of 2018

44%

N/A

Fully implement the JobPath programme and refer at least 60,000 long term unemployed people to JobPath in 2016

60,000 referrals to JobPath

70,000 referrals

Double the number of employers signed up to the Employment and Youth Activation Charter

300 new employers

400

Reduce the ratio between youth and overall unemployment from 2.2:1 to less than 2:1 by the end of 2017 (EU average = 2.2:1)

2.1:1

N/A

Increase the engagement frequency for one-to-one meetings for Low PEX and LTU clients from 6 meetings per year to 12 meetings per year

12

12

Target an aggregate progression to employment rate across activation programmes of 40% (measured 6 months after completion of programme)

40%

N/A

I have set out new objectives for 2017 to build on this progress:

- Help another 20,000 people move from welfare into work;

- Develop a Working Family Payment to make work more attractive for families currently on welfare;

- Implement an Action Plan for Jobless Families to zero in on long-term unemployment;

- Launch a new work experience programme to replace the JobBridge scheme that was closed in 2016;

- Recalibrate labour activation schemes like CE and TÚS to focus on those farthest from the labour market;

- Intensify our engagement with employers and boost the take up of JobsPlus, and the Wage Subsidy Scheme for employees with disabilities;

- Promote and make access to the Back to Work Enterprise Allowance easier;

- Work with other Government Departments to overcome the barriers to work including the cost of childcare, transport, education and housing;

- Increase the number of employers participating in the Department’s long-term unemployment and youth activation charter to over 600.

The Pathways to Work 2016-2020 strategy continues to prioritise support for the long-term unemployed. This includes the roll-out of the payment-by-results services of JobPath to engage more systematically with the long-term unemployed, including long-term unemployed youth; providing targeted wage subsidies under JobsPlus; and through reserved places for long-term unemployed jobseekers on employment and training programmes.

I am confident these measures, and continuing economic recovery, will support further reductions in long-term unemployment, and add to the substantial improvements that have already been seen over the last few years.

Youth Unemployment

Ceisteanna (160)

Niall Collins

Ceist:

160. Deputy Niall Collins asked the Minister for Social Protection his targets to reduce long-term youth unemployment in terms of specific numbers and percentages in each of the years to 2020; the measures that will be taken to achieve this EU trend; and if he will make a statement on the matter. [5204/17]

Amharc ar fhreagra

Freagraí scríofa

Government policy to reduce unemployment is twofold. First, through policies set out in the Action Plan for Jobs, to create an environment in which business can succeed and create jobs; and second, through Pathways to Work to ensure that as many of these new jobs and other vacancies that arise in our economy are filled by people taken from the Live Register, including young people.

To date, these policies have been effective in reducing youth unemployment and long-term youth unemployment in particular. The number of young Irish people who are unemployed for over a year has fallen from a peak of 35,600 in Q4 2011 to 11,900 in Q3 2016. The overall youth unemployment rate has fallen from a peak of 31% in 2012 to 13.5% in January 2015, bringing this rate from well above the EU average in 2012 to well below the EU figure now.

Looking forward, in the context of Pathways to Work 2016-2020, the government has adopted several high-level targets relevant to the question raised:

- Reducing the unemployment rate to between 5% and 6% by 2020

- Bringing youth unemployment to 12% or less by 2020 in the context of an overall unemployment rate of 6% or less;

- Decreasing long-term unemployment to 2.5%.

Targets were not set for intermediate years. However, it seems clear based on the most recent developments in the labour market that these targets are now likely to be achieved or indeed improved on.

A set of milestones and metrics has been developed as indicators of progress in addressing the challenges and delivering on Pathways to Work 2016-2020. Progress on milestones and metrics are published on the Department of Social Protection website and the metrics themselves will be reviewed and updated on an annual basis to reflect the key challenges and issues being addressed under this strategy each year. The relevant data for 2016 targets and outcomes are set out in Table 1. Many of these will directly or indirectly impact upon the reduction of long-term unemployment over the period of the strategy to 2020.

Table 1: Pathways To Work Measures/Metrics and 2016 Targets

Measure/Metric

2016 Target Performance

2016 Performance (Actual)

Move 50,000 long term unemployed at the start of 2016 into employment by the end of 2020

20,000

26,000

Reduce the persistence rate (the rate at which short term unemployed people become long term unemployed) by 25% from 27% to 20% by the end of 2018

24%

N/A

Increase the exit rate of people on the Live Register for two years or more by 30% (to 52%) by the end of 2018

44%

N/A

Fully implement the JobPath programme and refer at least 60,000 long term unemployed people to JobPath in 2016

60,000 referrals to JobPath

70,000 referrals

Double the number of employers signed up to the Employment and Youth Activation Charter

300 new employers

400

Reduce the ratio between youth and overall unemployment from 2.2:1 to less than 2:1 by the end of 2017 (EU average = 2.2:1)

2.1:1

N/A

Increase the engagement frequency for one-to-one meetings for Low PEX and LTU clients from 6 meetings per year to 12 meetings per year

12

12

Target an aggregate progression to employment rate across activation programmes of 40% (measured 6 months after completion of programme)

40%

N/A

I have set out new objectives for 2017 to build on this progress:

- Help another 20,000 people move from welfare into work;

- Develop a Working Family Payment to make work more attractive for families currently on welfare;

- Implement an Action Plan for Jobless Families to zero in on long-term unemployment;

- Launch a new work experience programme to replace the JobBridge scheme that was closed in 2016;

- Recalibrate labour activation schemes like CE and TÚS to focus on those farthest from the labour market;

- Intensify our engagement with employers and boost the take up of JobsPlus, and the Wage Subsidy Scheme for employees with disabilities;

- Promote and make access to the Back to Work Enterprise Allowance easier;

- Work with other Government Departments to overcome the barriers to work including the cost of childcare, transport, education and housing;

- Increase the number of employers participating in the Department’s long-term unemployment and youth activation charter to over 600.

The Pathways to Work 2016-2020 strategy continues to prioritise support for the long-term unemployed and young unemployed. This includes the roll-out of the payment-by-results services of JobPath to engage more systematically with the long-term unemployed, including long-term unemployed youth; providing targeted wage subsidies under JobsPlus; and through reserved places for long-term unemployed jobseekers on employment and training programmes.

Pathways to Work 2016-2020 additionally commits to: increasing the share of workplace-based interventions for youth unemployed; ensuring that monthly engagement, at a minimum, is consistently applied and maintained; restructuring the First Steps programme; and implementing the Defence Forces Skills for Life programme.

I am confident these measures, and continuing economic recovery, will support further reductions in youth unemployment, both long- and short-term, and add to the substantial improvements that have already been seen over the last few years.

Community Employment Schemes Eligibility

Ceisteanna (161)

Willie Penrose

Ceist:

161. Deputy Willie Penrose asked the Minister for Social Protection the qualifying criteria and eligibility conditions for a person who wishes to participate in a community employment scheme who is over 55 years of age; and if he will make a statement on the matter. [4944/17]

Amharc ar fhreagra

Freagraí scríofa

The aim of Community Employment (CE) is to enhance the employability and mobility of disadvantaged and unemployed persons by providing work experience and training opportunities within their communities. CE participants are required to work 19.5 hours on a weekly basis.

Current eligibility to participate on CE is linked to a person’s social welfare status (duration of payment) and age. The standard minimum entry age for CE is 25 years of age.

The CE Programme has two options:

- Part Time Integration Option (PTI) provides for 1 year on CE for those who have been in receipt of qualifying social welfare payments for 12 months or more;

- Part Time Job Option (PTJ) for persons age 35 years and over provides for up to 3 years on CE for those who have been in receipt of qualifying social welfare payments for 3 years or more; and

- In addition, the current criteria for participants aged 55 and over allows for a maximum cumulative duration on CE of 6 years (7 years if they were in receipt of a disability payment, inclusive of any time spent on CE while aged under 55).

If the person calls to their local Intreo office, they can clarify their eligibility. Details of CE eligibility criteria are published on the Department’s website (welfare.ie) and on the Citizens Information website (citizensinformation.ie).

I trust this clarifies the matter for the Deputy.

Occupational Injuries Benefit Applications

Ceisteanna (162)

Michael Healy-Rae

Ceist:

162. Deputy Michael Healy-Rae asked the Minister for Social Protection the status of an application for disability benefit in respect of a person (details supplied); and if he will make a statement on the matter. [4947/17]

Amharc ar fhreagra

Freagraí scríofa

The person concerned applied for and has been awarded Occupational Injury Benefit effective from 30 September 2016 at the maximum weekly rate of €188.00. Payment is issuing to the employer as requested on the application form.

Occupational Injury Benefit is payable for a maximum of 26 weeks. If the person concerned is still unable to work at that stage they will transfer to Illness Benefit as they satisfy the PRSI contribution conditions for that benefit.

I hope this clarifies the matter for the Deputy.

Question No. 163 withdrawn.

Disability Allowance Eligibility

Ceisteanna (164)

Robert Troy

Ceist:

164. Deputy Robert Troy asked the Minister for Social Protection his plans to adjust the system whereby a person (details supplied) who was self-employed is not entitled to the same benefits as a PAYE employee; and if he will make a statement on the matter. [4970/17]

Amharc ar fhreagra

Freagraí scríofa

Disability Allowance is a means tested payment for those, aged between 16 and 66, who have an injury, disease or physical or mental disability that has continued or may be expected to continue for at least one year. As a result of this disability the person must be substantially restricted in undertaking work that would otherwise be suitable for a person of his/her age, experience and qualifications.

The scheme, which is not based on social insurance contributions, is available to all those meeting the scheme conditionality including those who were formerly self-employed.

Invalidity pension is a pension payment for insured people who cannot work because of a long-term illness or disability. In Budget 2017, my colleague Minister Varadkar announced the extension of cover for invalidity pension to the self-employed on a similar basis as employees. This is in line with the commitment contained in the Programme for Government for an improved PRSI scheme for the self-employed.

For the first time, the self-employed will have access to the safety net of State income supports if they have a serious illness or injury that prevents them from working, without having to go through a means test. This is a real advance in the level of cover available to the self-employed. Given that this is a major change in the social protection system, significant adjustments to operational systems and processes will be required to support this measure.

Therefore, the measure will come into effect in December 2017 and apply to those satisfying the conditions of the scheme from that date.

I trust that this provides clarity on the issue for the Deputy.

Rent Supplement Scheme Data

Ceisteanna (165)

John Curran

Ceist:

165. Deputy John Curran asked the Minister for Social Protection the number of persons in each local authority who are in receipt of rent support, in tabular form; the number of those persons in each local authority who have received an uplift in their rent support; and if he will make a statement on the matter. [4973/17]

Amharc ar fhreagra

Freagraí scríofa

The rent supplement scheme plays a vital role in housing families and individuals, with the scheme currently supporting approximately 47,100 tenants for which the Government has provided €253 million in 2017.

In recognition of the ongoing housing supply difficulties, my Department continues to implement a targeted case-by-case policy approach that allows for flexibility where landlords seek rents in excess of the limits. In addition, the Protocol arrangement in place with Threshold is operational in the areas where supply issues are particularly acute covering Dublin, Cork, Meath, Kildare and Wicklow and Galway City. Since the introduction of this flexible approach, almost 11,000 persons at imminent risk of homelessness have been supported through increased rent supplement payments. A county breakdown of rent supplement recipient numbers and the number of uplift payments made under the scheme are provided in the tabular statement; this information is not maintained by local authority area.

In tandem with the increased rental limits introduced in July 2016 and on-going transfers to the Housing Assistance Payment (HAP) scheme, my Department continues to implement a targeted, flexible, case-by-case approach where rents may exceed the appropriate maximum limit ensuring where possible that tenants can remain in their homes.

I trust this clarifies the matter for the Deputy.

Tabular Statement

Rent Supplement Recipients & Increased Payments by County as at end January 2017

County

No. of Rent Supplement Recipients as of

31 Jan 17

Cumulative Awards under National Tenancy Sustainment Framework

Cumulative Awards under protocol with Threshold

Total Cumulative increased payments as of 31 Jan 17

CARLOW

582

74

74

CAVAN

388

64

64

CLARE

402

60

60

CORK

4,839

450

103

553

DONEGAL

402

-

-

DUBLIN

20,315

4,238

2,520

6,758

GALWAY

2,418

204

5

209

KERRY

1,511

193

193

KILDARE

2,543

549

3

552

KILKENNY

305

135

135

LAOIS

868

119

119

LEITRIM

267

100

100

LIMERICK

951

16

16

LONGFORD

388

311

311

LOUTH

830

157

157

MAYO

1,039

3

3

MEATH

968

432

432

MONAGHAN

184

1

1

OFFALY

550

64

64

ROSCOMMON

550

52

52

SLIGO

265

1

1

TIPPERARY

835

283

283

WATERFORD

577

62

62

WESTMEATH

1,255

373

373

WEXFORD

1,946

23

23

WICKLOW

1,935

389

3

392

Overall Total

47,113

8,353

2,634

10,987

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