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Tuesday, 28 Feb 2017

Written Answers Nos. 396-409

Legislative Measures

Ceisteanna (396)

Eoin Ó Broin

Ceist:

396. Deputy Eoin Ó Broin asked the Minister for Housing, Planning, Community and Local Government if he will consider introducing an amendment to the Residential Tenancies Act to allow for the initial date of occupation of an approved housing body tenancy to be considered the start date for the new Part 4 tenancy when that tenancy is brought under the terms of the Residential Tenancies Act as amended in 2014; and if not, the reasons therefor. [10274/17]

Amharc ar fhreagra

Freagraí scríofa

The Residential Tenancies (Amendment) Act 2015 amended section 3 of the Residential Tenancies Act 2004 so that dwellings let by approved housing bodies (AHBs) to social housing tenants now come within the remit of the Residential Tenancies Act 2004. This means that the same rights and obligations that are afforded to landlords and tenants in the private rented sector are now afforded to those in the Approved Housing Body Sector.

The position of AHB tenants is significantly improved by the change, which commenced on 7 April 2016, as they now benefit from the following:

- Increased security of tenure;

- Access to Residential Tenancies Board (RTB) dispute resolution procedures, including free mediation;

- Binding obligations on AHBs as landlords to, inter alia, register all tenancies, keep dwellings in good repair and allow peaceful occupation.

Security of tenure under the 2004 Act is provided for in Part 4 of the Act and is based on rolling four-year tenancy cycles. Where a tenant has been in occupation of a dwelling for a continuous period of 6 months, and no notice of termination has been served in respect of that tenancy before the expiry of the period of 6 months, the tenancy continues in being for a period of 4 years from either the commencement of the tenancy or the relevant date, whichever is the later.

For existing AHB tenancies that came under the Act in 2016, the relevant date was 7 April 2016. This mirrors how the Act was applied to existing private rental tenancies in 2004. Therefore, all existing AHB tenancies acquired the right to Part 4 tenancies in October 2016 unless a valid notice of termination was served in respect of that tenancy before the expiry of the period of 6 months from 7 April 2016. Where a tenant enjoys for the time being, by reason of the tenancy concerned, rights that are more beneficial for the tenant than those created by Part 4 of the Act, the application of the Act to AHB tenancies does not operate to derogate from those rights.

It is not possible to introduce legislation that operates in a way that is retrospective and therefore I have no plans to amend the Residential Tenancies Acts to allow for the date of occupation of an AHB tenancy to be considered the start date for a new Part 4 tenancy.

Social and Affordable Housing Provision

Ceisteanna (397)

Róisín Shortall

Ceist:

397. Deputy Róisín Shortall asked the Minister for Housing, Planning, Community and Local Government the details of the proposed affordable rental scheme that has been mentioned in the context of the development of several Dublin City Council developments, including Oscar Traynor Road and O'Devaney Gardens, in view of the fact Dublin City Council has indicated it has no details of an affordable rental scheme; and if he will make a statement on the matter. [10275/17]

Amharc ar fhreagra

Freagraí scríofa

The development of the Strategy for the Rental Sector published in December 2016 allowed for further consideration of the development of an affordable rental scheme, in consultation with local authorities and stakeholders.

As set out in the Strategy, the commitment to introduce affordable rental is to be progressed through kick-starting supply in rent pressure zones. Lands held by local authorities in rent pressure zones are to be brought to market on a competitive tendering basis, with a view to leveraging the value of the land to deliver the optimum number of units for rent, targeting middle income households, in mixed tenure developments.

The cost of providing rental units is to be permanently reduced by lowering the initial investment and development costs for providers-AHB or private-allowing the rental units to be made available at below market prices without the need for ongoing rental subsidies.

The local authorities concerned will identify a number of sites with the potential for up to 1,000 units of accommodation and will move forward, as soon as possible, to issue calls for proposals from parties interested in developing projects. As speed of delivery will be critically important, appropriate licence arrangements, incorporating clear timescales for delivery, will be a key feature of the process.

This programme is being co-ordinated with the dedicated measures in Rebuilding Ireland to accelerate housing output from the Major Urban Housing Delivery Sites, including support from the Local Infrastructure Housing Activation Fund (LIHAF) where necessary.

Legislative Measures

Ceisteanna (398)

Eoin Ó Broin

Ceist:

398. Deputy Eoin Ó Broin asked the Minister for Housing, Planning, Community and Local Government if he will confirm that included in the amendments to the Residential Tenancies Act 2004 made in 2016 was the removal of subsequent six month probationary tenancies at the end of an existing Part 4 tenancy. [10294/17]

Amharc ar fhreagra

Freagraí scríofa

Section 41 of the Planning and Development (Housing) and Residential Tenancies Act 2016 provides for the repeal of section 42 of the Residential Tenancies Act 2004 and therefore abolishes the right of a landlord, during the first 6 months of a further Part 4 tenancy, to terminate that tenancy for no stated ground. This provision came into effect on 17 January 2017.

Housing Inspections

Ceisteanna (399)

Michael Healy-Rae

Ceist:

399. Deputy Michael Healy-Rae asked the Minister for Housing, Planning, Community and Local Government the reason no Government to date has any regulation in place to enable HIQA to investigate any potential problems that could arise in sheltered homes for the elderly persons here (details supplied); and if he will make a statement on the matter. [10367/17]

Amharc ar fhreagra

Freagraí scríofa

Sheltered housing to meet the needs of persons with specific categories of housing need, including the elderly, is provided by approved housing bodies and local authorities with funding support under my Department. In the case of the approved housing bodies, funding is provided under my Department’s Capital Assistance Scheme and the housing is managed by the approved housing bodies. The health care needs of residents in such sheltered housing is a matter for the HSE, while legislation relating to HIQA is a matter for my colleague the Minister for Health.

Social and Affordable Housing Provision

Ceisteanna (400)

Michael McGrath

Ceist:

400. Deputy Michael McGrath asked the Minister for Housing, Planning, Community and Local Government if a certain property (details supplied) in County Cork is being acquired for the purpose of providing housing or any other form of accommodation; if he will provide relevant details; and if he will make a statement on the matter. [10399/17]

Amharc ar fhreagra

Freagraí scríofa

Cork County Council are in the process of engaging external advice to undertake an initial feasibility study in conjunction with my Department to ascertain the suitability or otherwise of this property for acquisition for social housing purposes. The matter will be considered further in light of the outcome of the feasibility study.

Vacant Sites Levy

Ceisteanna (401)

Michael McGrath

Ceist:

401. Deputy Michael McGrath asked the Minister for Housing, Planning, Community and Local Government the position regarding the application of a vacant sites levy; and if he will make a statement on the matter. [10400/17]

Amharc ar fhreagra

Freagraí scríofa

The Urban Regeneration and Housing Act 2015 introduced a new measure, the vacant site levy, with a view to incentivising the development of vacant or under-utilised sites in urban areas.

Under the Act, planning authorities are required to establish a register of vacant sites in their areas, beginning on 1 January 2017, and to issue annual notices to owners of vacant sites by 1 June 2018 in respect of vacant sites on the register on 1 January 2018. The levy will be applied by planning authorities, commencing on 1 January 2019, in respect of sites which were vacant and on the vacant site register during the preceding year (i.e. 2018) and will subsequently be applied on an annual basis thereafter, as long as a site remains on the vacant site register in the preceding year.

Planning authorities are empowered to apply an annual vacant site levy of 3% of the market value of vacant sites exceeding 0.05 hectares (or 500 square metres) in area which, in the planning authority’s opinion, were vacant or idle in the preceding year, in areas identified by the planning authority in its development plan or local area plan for residential or regeneration development. The 3% rate of vacant site levy is consistent with the rate applied to derelict sites under the Derelict Sites Act 1990 and is considered reasonable, without being over-punitive, for the purposes of incentivising the activation of such sites for residential or regeneration purposes.

In addition, the legislation provides that reduced or zero rates of levy may apply in specific circumstances in order to help alleviate the financial burden faced by owners of vacant sites which are subject to a site loan and where the loan is greater than the market value of the site (i.e. a negative equity situation), and also where the site loan is greater than 50% of the market value of the site. This is to ensure that the levy provisions are fair, reasonable and proportionate taking account of the difficult circumstances faced by owners who are in this position.

My Department issued general guidance in July 2016 on the implementation of the vacant site levy to planning authorities by way of Circular Letter PL 7/2016, entitled Implementation of the Vacant Site Levy, as provided for in the Urban Regeneration and Housing Act 2015 , which is available on my Department’s website at the following link: http://www.housing.gov.ie/sites/default/files/publications/files/pl_07-2016_guidance_on_implementation_of_the_vacant_site_levy.pdf.

Planning authorities are presently engaging in the necessary preparatory work prior to the application of the levy with effect from January 2019, including the revision of development plans to specify the areas in which the levy is to be applied as well as the identification of specific vacant sites for entry on the register. My Department will monitor the implementation of the levy to ensure that it is being fully used in line with its intended purpose.

Departmental Legal Cases

Ceisteanna (402)

Robert Troy

Ceist:

402. Deputy Robert Troy asked the Minister for Housing, Planning, Community and Local Government the status of the judicial review concerning peat extraction from bogs here and the loophole in the legislation that is allowing companies to do so. [10443/17]

Amharc ar fhreagra

Freagraí scríofa

Neither the State, nor I as Minister, is a party to any current Court case involving a judicial review relating to peat extraction and planning legislation. I am not, therefore, in a position to indicate the present status of any specific such case.

Tribunals of Inquiry Data

Ceisteanna (403)

Michael McGrath

Ceist:

403. Deputy Michael McGrath asked the Minister for Housing, Planning, Community and Local Government the tribunals established under the Tribunals of Inquiry (Evidence) Acts 1921 to 2011, in tabular form; the number of days each tribunal sat for; the gross cost of each tribunal; and if he will make a statement on the matter. [10770/17]

Amharc ar fhreagra

Freagraí scríofa

The Tribunal of Inquiry into Certain Planning Matters and Payments (otherwise known as the Mahon Tribunal), concluded its public hearings on 29 October 2008 and its deliberations in 2012. The Final Report was published on 22 March 2012, with Volume V (Chapter 19 - The Carrickmines Module) of the Final Report published on 31 July 2013. Copies of both documents are available to download at the following link - https://planningtribunal.ie/.

The Mahon Tribunal commenced preparations for its wind down in 2014 and the costs incurred since 2012 relate mainly to:

- operational costs – salaries of non-legal Tribunal staff,

- Court costs – costs of litigation in which the Tribunal has been engaged, and

- third party costs – costs incurred by persons in their dealings with the Tribunal.

The most recent estimate of the cost of the Tribunal is €159m, some € €119.8m of which has been paid to end of January 2017.

Name of Tribunal

Number of days sat

Gross cost of Tribunal

Tribunal of Inquiry into Certain Planning Matters and Payments

916 days

Estimated at €159m

Carer's Allowance Applications

Ceisteanna (404)

Pat Breen

Ceist:

404. Deputy Pat Breen asked the Minister for Social Protection when an application will be processed for a person (details supplied); and if he will make a statement on the matter. [9548/17]

Amharc ar fhreagra

Freagraí scríofa

I confirm that my department received an application for Carer’s Allowance (CA) from the person concerned on 28 October 2016. It is a condition for receipt of a CA that the person being cared for must have a disability whose effect is that they require full-time care and attention.

This is defined as requiring from another person, continual supervision and frequent assistance throughout the day in connection with normal bodily functions or continuous supervision in order to avoid danger to him or herself and likely to require that level of care for at least twelve months.

The evidence submitted in support of this application was examined and the deciding officer decided that this evidence did not indicate that the requirement for full-time care was satisfied.

The person concerned was notified on 18 January 2017 of this decision, the reason for it and of her right of review and appeal.

The person concerned appealed this decision to the Social Welfare Appeals Office (SWAO).

All the necessary papers were submitted to the SWAO for determination on 23 February 2017. Once all the necessary investigations have been completed she will be notified by the SWAO directly of the outcome of the appeal.

I hope this clarifies the matter for the Deputy.

Community Employment Schemes Operation

Ceisteanna (405)

Bernard Durkan

Ceist:

405. Deputy Bernard J. Durkan asked the Minister for Social Protection if provision will be made whereby an extension to participants in respect of community employment schemes can be approved, with particular reference to difficulties experienced by local community groups in filling such posts; and if he will make a statement on the matter. [9552/17]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy will be aware, my Department provides a range of activation supports catering for long-term unemployed jobseekers and those most distant from the labour market. These supports include employment schemes such as Community Employment (CE). These schemes provide part-time temporary work in local communities, as a stepping stone back to employment. The objective of these schemes is to break the cycle of unemployment and maintain work readiness, thereby improving a person’s opportunities in returning to the labour market. Communities benefit from the skills and talents of participants and, in addition, participants are provided with the opportunity to improve existing skills, or develop new skills, while performing valuable work in their local communities.

All participants and community groups are aware of the time limits for participation on these schemes. The participation limits aim to ensure the benefit of participation on a work scheme is available to the widest possible number of jobseekers. In addition, it is generally recognised that there is a greater likelihood of a ‘lock–in’ effect where a scheme is of a longer duration.

Officials in my Department’s Intreo offices co-ordinate the recruitment process for work schemes at a local level and they will be happy to assist in relation to any local recruitment issues to ensure the maximum utilisation of places. If any scheme is experiencing particular difficulties filling vacancies, they should contact their local Intreo office as soon as possible.

I trust this clarifies the matter for the Deputy.

Money Advice and Budgeting Service

Ceisteanna (406)

Pearse Doherty

Ceist:

406. Deputy Pearse Doherty asked the Minister for Social Protection the number of applicants to date to the Abhaile scheme; the number of persons who have been accepted into the scheme; the number of persons who availed of the services of an accountant, a mortgage adviser, a personal insolvency practitioner, a solicitor or a court mentor on the basis of a voucher issued by the scheme; and if he will make a statement on the matter. [9570/17]

Amharc ar fhreagra

Freagraí scríofa

The Money Advice and Budgeting Service (MABS), under the aegis of the Citizens Information Board, assists people who are over-indebted and need help and advice in coping with debt problems, in particular those on low incomes or living on social welfare payments. As part of its free services, MABS provides help and advice to those in mortgage arrears.

The role of MABS was expanded in 2015 with the establishment of a Dedicated Mortgage Arrears MABS service (DMA MABS) across the MABS network, to help people specifically with home mortgage arrears. There are now 32 specialist DMA advisors working across 27 locations countrywide, assisting borrowers to assess the options available to them and, where required, negotiating with lenders on their behalf. To date, the DMA services has helped over 3,000 such borrowers. People seeking to access help under the DMA MABS service do not require a voucher to do so.

Additionally, MABS has established a national network of court mentors. The mentors attend each listed repossession Court hearing nationwide and provide support to distressed borrowers who are facing the loss of their home and signposting them to the appropriate services. To date, over 1,600 borrowers have been referred to MABS services through the court mentor service. Borrowers do not require a voucher to access this service.

In 2016, an additional initiative was announced by Government. The scheme, known as Abhaile, further extends the free services already available to borrowers through the DMA MABS service and the court mentor service. The new voucher based scheme, for which MABS is the gateway, provides access for people, who are insolvent and in home mortgage arrears, to defined levels of independent expert financial and/or legal advice and assistance, free of charge. Qualification for help under the scheme is based on the being (a) in mortgage arrears on their home; (b) insolvent; (c) at risk of losing their home because of their mortgage arrears; and (d) reasonably accommodated.

The new services are provided by professionals drawn from one or more panels of solicitors, personal insolvency practitioners or accountants. Professional panels consisting of qualified and regulated solicitors and personal insolvency practitioners are already in place, and an expert panel of accountants is expected to be in place by end Quarter 1, 2017 to provide specialist financial advice, where required.

The scheme has been in operation since 22 July 2016 and was formally launched on 3 October 2016. To date, 4,810 vouchers for services have been issued, in respect of 3,017 principle private residences. Of the vouchers issued to date, 3,764 relate to the provision of personal insolvency practitioner services, 925 for legal advice services on issues related to mortgage arrears, and 121 for legal aid services relating to Section 115A Appeals, as defined under the Personal Insolvency (Amendment) Act 2015. No vouchers have issued for accountancy services, as the panel is not yet in place.

While we have already seen significant take up of the services available, it is intended that the communication campaign which I jointly launched yesterday with the Tánaiste and Minister for Justice and Equality, Frances Fitzgerald T.D., will encourage many more borrowers to come forward and avail of the free help they need to resolve their home mortgage arrears. The campaign includes outdoor posters, radio advertisements and a social media campaign, in order to reach as many distressed borrowers as possible, with the aim of keeping individuals and families in their own homes.

I hope this clarifies the matter for the Deputy.

Insolvency Payments Scheme Eligibility

Ceisteanna (407)

Brendan Griffin

Ceist:

407. Deputy Brendan Griffin asked the Minister for Social Protection if progress has been made on the review of eligibility for the insolvency payments scheme; and if he will make a statement on the matter. [9592/17]

Amharc ar fhreagra

Freagraí scríofa

Under the provisions of the Protection of Employees (Employers’ Insolvency) Act 1984, an employer company shall be regarded as being insolvent if the company is placed into receivership or a winding-up order has been made or a resolution for the voluntary liquidation of the company has been passed. The Act does not cover informal insolvency where employers cease trading without engaging in any formal wind-up process.

The Department is continuing to review the situation of informal insolvency. There are many difficult and complex company and employment law matters to be considered. The Department is considering legal advice on the matter and the possible impacts that any potential policy developments could have on existing legislation. In addressing this we must find a sensible and proportionate approach which does not have negative knock-on consequences.

The Department is consulting with a range of concerned bodies, including the Office of the Director of Corporate Enforcement, the Department of Jobs, Enterprise and Innovation and the Revenue Commissioners, in respect of this issue.

In addition, the Department continues to engage with the two reviews of employment and company law which were initiated by the Minister for Jobs, Enterprise and Innovation on foot of the Clery’s closure.

There are also a number of legal cases under consideration by the Courts at the moment, the outcome of which will have a bearing on this matter.

I trust this clarifies the matter for the Deputy.

State Pension (Contributory)

Ceisteanna (408)

Róisín Shortall

Ceist:

408. Deputy Róisín Shortall asked the Minister for Social Protection the cost to the Exchequer in a full year of reversing the 2012 changes to the banding system of the State pension (contributory). [9615/17]

Amharc ar fhreagra

Freagraí scríofa

The overall concern in recent years has been to protect the value of weekly social welfare rates. Expenditure on pensions, at approximately €7 billion each year, is the largest block of expenditure in my Department in the Estimate for 2017, representing approximately 35% of overall expenditure. Due to demographic changes, my Department’s spending on older people is increasing by approximately €200m year on year. Maintaining the rate of the State pension and other payments is critical in protecting people from poverty.

There are three main pensions paid by my Department to people aged 66 and over, namely the State pension contributory (which is based on PRSI contributions), the State pension non-contributory (which is based on means), and the Widows/Widowers/Surviving Civil Partners Contributory pension (which is based on PRSI contributions, and is also payable at a lower rate before 66).

The State pension contributory (previously called the Old Age Contributory Pension) was introduced in 1961, and is funded by PRSI contributions, on a pay-as-you go basis. Since its introduction, the rate of payment has been based on the ‘yearly average’ test.

These rates are banded, and those bands have been amended from time to time, most recently in 2012. There have been no changes in the structure of the bands since then, aside from increases in the rates, which are passed on pro-rata to the reduced rates.

As provided for in Budget 2012, from September 2012, new rate bands for State pension (contributory) were introduced. This resulted in one of the bands (in respect of those with a yearly average of 20-47 contributions) being replaced with three bands (in respect of yearly averages of 40-47, 30-39, and 20-29 respectively). These additional bands more accurately reflect the social insurance history of a person and ensure that those who contribute more during a working life are likely to benefit more in retirement than those with lesser contributions.

It is estimated that the cost of reverting to the rate-bands which existed between 2000 and 2012 would be over €50 million in 2017, if introduced from January 2017, and that this annual cost would rise at a rate of some €10 million each year.

Prior to these changes, in the period from 2000-2012, someone with a yearly average of 47 contributions qualified for the same rate of payment (98% of the maximum rate) as someone with a yearly average of 20 contributions, despite generally their much more significant PRSI record, and this was regardless of their means. A person with an average of 48-52 PRSI contributions per year over their working life received a weekly State pension of only €4.50 more than someone with a yearly average of 20 PRSI contributions. Aside from the lack of equity involved, this was a significant disincentive to longer working, as in most cases, contributions paid by people in their sixties had no impact upon the rate of their State pension upon retirement.

Given the requirement to make savings in recent years, it was considered more equitable to address this disparity, than to reduce the rate of payment for all pensioners by an across the board cut in payment rates. Such a cut would have reduced the incomes of the most vulnerable pensioners, who do not receive such reduced rate contributory pensions, but rather receive a maximum rate non-contributory pension, or a maximum rate contributory pension if they have the required contributions.

For those with insufficient contributions to meet the requirements for a full rate State pension (contributory), they may qualify for a means tested State pension (non-contributory) which has a maximum personal rate of €222, or just over 95% of the maximum rate of the State pension (contributory). Alternatively, if a person’s spouse or civil partner is in receipt of a State pension (contributory) they may instead qualify for an Increase for a Qualified Adult of up to €209, which is just less than 90% of the maximum personal rate of the State pension (contributory). The latter payment is made directly to them, and is based upon their own means, and not their household means.

I hope this clarifies the matter for the Deputy.

Pension Provisions

Ceisteanna (409)

Michael McGrath

Ceist:

409. Deputy Michael McGrath asked the Minister for Social Protection if pension scheme members, including current employee members, deferred members and pensioners in payment, are entitled to receive an annual report on the scheme; and if he will make a statement on the matter. [9639/17]

Amharc ar fhreagra

Freagraí scríofa

S.I. No. 301/2006 - Occupational Pension Schemes (Disclosure Of Information) Regulations, 2006, as amended, set out regulations for the disclosure of information by occupational pension schemes.

Scheme trustees must make available a copy of the latest annual report of a scheme, free of charge, not later than 9 months after the end of the scheme year or such later date as may be approved by the Pension Authority. For current employee members, the trustees must provide the annual report at the latest 4 weeks after the 9 month period referred to has expired. Generally such members are informed by an announcement in staff circulars or on staff notice boards.

All members, prospective members, their spouses and other scheme beneficiaries such as deferred members must be provided with the annual report free of charge on request not later than 4 weeks after the request is made. Furthermore the report must be given automatically to any authorised trade union which represents the members of the pension scheme.

I hope this clarifies the matter for the Deputy.

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