Written Answers Nos. 222-234
224. Deputy Bernard J. Durkan asked the Minister for Finance if he remains satisfied regarding the extent to which adequate credit facilities continue to be available to the small and medium sized business sector to allow that sector to develop and grow adequately; and if he will make a statement on the matter. [16743/17]
Amharc ar fhreagraThis Government recognises that small businesses play a central role in the sustainable recovery of the Irish economy. To facilitate this, Government policy since 2011 has been focused on ensuring that all viable SMEs have access to an appropriate supply of credit facilities from a diverse range of bank and non-bank sources.
In line with Action 62 of the APJ 2017, officials from my Department will collate and examine data from AIB and Bank of Ireland on a monthly basis, including data pertaining to the various sectors. Furthermore, my officials meet the banks on a quarterly basis to ensure an informed understanding of the wider SME bank lending environment which assists the development and implementation of policies aimed at ensuring SME access to finance and increased competition in the SME lending sector.
In terms of monitoring the requirements for SMEs, my Department commissions biannual surveys to ascertain the demand for credit by SMEs. This survey series, most recently conducted by Behaviour and Attitudes on behalf of my Department, is the most comprehensive survey of SME credit demand in Ireland, covering 1,500 respondents and involving over 6,000 direct telephone calls to SMEs. SMEs of all sizes trading in all sectors, excluding property development and speculative activities, are included. The survey covers demand for credit from both bank and non-bank sources.
I would draw the Deputy's attention to the most recently published Department of Finance SME Credit Demand Survey covering the April to September 2016, which can be found at www.finance.gov.ie/sites/default/files/20161205%20SME%20Credit%20Demand%20Survey%20April%20to%20September%202016_0.pdf.
The results of this survey show that, when pending applications are excluded, 84% of credit applications to banks were approved or partially approved. Demand for credit remains subdued and the latest survey shows only 23% of requested bank finance in the previous six months down from 26% in March 2016.
Purchases, replacement or lease of new vehicle/equipment is now provided as the main reason for applying for bank finance with 29% stating this is why they requested bank finance. Working capital/cash flow requirements were provided as the second highest reason for applying for bank finance with 27% of respondents stating that they required finance for this purpose. When asked about sources of finance for working capital, internal funds/retained earnings were the main finance source of working capital with 73% of working capital coming from this source (up 6%). The survey also showed continued positive trends in terms of trading performance, profitability and employment.
I am pleased to note that, to the end of December 2016, the Strategic Banking Corporation of Ireland has lent circa €544 million to 12,589 SMEs supporting an estimated 67,150 jobs. These figures represent a significant increase in lending by the SBCI during 2016. The SMEs who received SBCI finance are from a variety of business and economic sectors and are spread across every region of the country. More than 80% of loans are for investment purposes and the average loan size is €43,000. There is a broad geographical spread of the SMEs supported with approximately 85% of them based outside Dublin. The SBCI is using its significant funding capacity, of over €1 billion, to support Irish SMEs investing in and growing their businesses.
Over 32,500 businesses and entrepreneurs used the Government's Supporting SMEs Online Tool in 2016, over three quarters of them using the Online Tool for the first time. The campaign is a cross-governmental initiative developed to help small businesses and entrepreneurs learn the full range of potential Government supports available to them. The Supporting SMEs Online Tool is available at www.supportingsmes.ie/.
The Credit Guarantee Scheme encourages additional lending to small businesses by offering a partial Government guarantee to banks against losses on qualifying loans to eligible SMEs. The Credit Guarantee (Amendment) Act was brought through the Oireachtas in 2016, allowing the scheme to assist more small and medium sized enterprises secure loan finance. In 2017 the Department of Jobs, Enterprise and Innovation will prepare and launch a revised Credit Guarantee Scheme, which will now be operated by the SBCI, to ensure a greater supply of credit for Irish SMEs.
The Microenterprise Loan Fund, administered by Microfinance Ireland, provides loans of up to €25,000 to small businesses who have been refused credit by commercial banks. Microfinance Ireland works in partnership with the Local Enterprise Offices nationally to administer this fund. This scheme is currently being reviewed by the Department of Jobs, Enterprise and Innovation with a view to making proposed changes to enhance its effectiveness.
The Credit Review Office helps SME or Farm borrowers who have had an application for credit of up to €3 million declined or reduced by either Bank of Ireland or Allied Irish Banks, and who feel that they have a viable business proposition. They also examine cases where borrowers feel that the terms and conditions of their existing loan, or a new loan offer, are unfairly onerous or have been unreasonably changed to their detriment. This is a strictly confidential process between the business, the Credit Review Office and the bank. The Credit Reviewer, John Trethowan and his team, have overturned over 50% of the refusals that have been appealed to the Office. Further details are available at www.creditreview.ie/.
The Government remains committed to the SME sector, as reflected in the Programme for a Partnership Government, and sees it as a key engine of ongoing economic growth. Consequently, my Department and the Credit Review Office, working with the other relevant Departments and Agencies, will continue to monitor the availability of both bank and non-bank credit on both a macro and sectorial basis in order to ensure that sufficient access to finance is available to facilitate indigenous SMEs, to reach their full potential in terms of growth and employment generation.
226. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that first-time house buyers or the purchasers of a family home are not being priced out of the market; and if he will make a statement on the matter. [16745/17]
Amharc ar fhreagraAlthough the Minister for Housing, Planning, Community and Local Government has overall responsibility for housing policy, my Department monitors developments in this area as clearly there are potential spillover effects to the rest of the economy.
The recovery in the economy and the pick-up in employment over the last number of years has led to strong growth in the demand for housing. The lack of a sufficient supply response to date reflects structural constraints within the housing market.
Rebuilding Ireland, The Action Plan for Housing and Homelessness reflects the Government's commitment to addressing the ongoing issues in the housing market. The Action Plan contains 113 actionable measures across five key pillars namely to Address Homelessness, Accelerate Social Housing, Build More Homes, Improve the Rental sector, and Utilise Existing Housing. These actions are designed to help address the structural constraints evident in the housing market by, inter alia, streamlining the planning system, removing infrastructure blockages and supporting the delivery of affordable housing.
A Help to Buy tax incentive was introduced in Budget 2017 as a complement to the structural measures contained in Rebuilding Ireland. The initiative seeks to do this by providing immediate support to first time buyers helping to ensure the availability of adequate, affordable mortgage finance for first time buyers as new residential housing output comes on stream.
The Deputy will be aware that during the Committee Stage debate on the relevant section of Finance Act 2016, I agreed to commission an independent impact assessment on the effects of the Help to Buy incentive. My officials have issued a Request for Tender (RFT) for the production of such an assessment. It stipulates that the study should assess whether the policy objectives on the supply of new homes are being met, what impact (if any) the scheme is having on new and second-hand house prices, and what impact the scheme is having on the residential property market generally. The output of this assessment will be a written report to be completed and submitted to me by 31 August 2017.
227. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects to continue to encourage the banking sector to meet the requirements of small and medium sized industry, the retail or commercial sector; and if he will make a statement on the matter. [16746/17]
Amharc ar fhreagraGovernment policy remains focused on ensuring that all viable SMEs have access to an appropriate supply of credit from a diverse range of bank and non-bank sources. In this regard the Government has developed a number of initiatives to ensure that the supply of credit in the market is sufficient to meet the existing and future needs of SMEs.
In line with Action 62 of the APJ 2017, officials from my Department will collate and examine data from AIB and Bank of Ireland on a monthly basis, including data pertaining to the various sectors. Furthermore, my officials meet the banks on a quarterly basis to ensure an informed understanding of the wider SME bank lending environment which assists the development and implementation of policies aimed at ensuring SME access to finance and increased competition in the SME lending sector.
In terms of monitoring requirements for all SMEs including the retail sector, my Department commissions biannual surveys to ascertain the demand for credit by SMEs. This survey series, most recently conducted by Behaviour & Attitudes on behalf of my Department, is the most comprehensive survey of SME credit demand in Ireland, covering 1,500 respondents and involving over 6,000 direct telephone calls to SMEs. SMEs of all sizes trading in all sectors, excluding property development and speculative activities, are included. The survey covers demand for credit from both bank and non-bank sources.
I would draw the Deputy's attention to the most recently published Department of Finance SME Credit Demand Survey, covering the period April to September 2016, which can be found at www.finance.gov.ie/what-we-do/banking-financial-services/sme-credit-lending.
The SME State Bodies Group, chaired by my Department, provides a forum for the development and implementation of policy measures to enhance SMEs' access to a stable and appropriate supply of finance. As the Deputy will be aware, the Action Plan for Jobs over the past number of years has set out a range of commitments to ensure viable SMEs can access appropriate finance at a reasonable cost from both bank and non-bank sources. These Government policies have supported year on year increases in new lending to SMEs, as measured by the Central Bank.
The Government remains committed to the SME sector and sees it as the key engine of ongoing economic growth. I can assure the Deputy that my Department, working with other relevant Departments, Bodies and Agencies, such as the Credit Review Office, will continue to monitor the availability of both bank and non-bank credit so as to ensure that Irish SMEs have sufficient access to finance.
228. Deputy Willie O'Dea asked the Minister for Finance his plans to change the medical criteria for disabled drivers and disabled passengers scheme 1994 with regards to persons that are blind; and if he will make a statement on the matter. [16758/17]
Amharc ar fhreagraThe Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and VRT, up to a certain limit, on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities, payment of a fuel grant, and an exemption from Motor Tax.
To qualify for the Scheme an applicant must be in possession of a Primary Medical Certificate. To qualify for a Primary Medical Certificate, an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions:
- be wholly or almost wholly without the use of both legs;
- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
- be without both hands or without both arms;
- be without one or both legs;
- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
The Senior Medical Officer for the relevant local Health Service Executive administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a Primary Medical Certificate, which is required under the Regulations to claim the reliefs provided for in the Scheme. An unsuccessful applicant can appeal the decision of the Senior Medical Officer to the Disabled Drivers Medical Board of Appeal, which makes a new clinical determination in respect of the individual. The Regulations mandate that the Medical Board of Appeal is independent in the exercise of its functions to ensure the integrity of its clinical determinations.
The criteria to qualify for the Scheme are necessarily precise and specific. After six months a citizen can reapply if there is a deterioration in their condition.
The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and fuel grant provided for members of the Scheme, the Scheme represented a cost of €65.1 million in 2016. This does not include the revenue foregone to the Local Government Fund in the respect of the relief from Motor Tax provided to members of the Scheme.
I recognise the important role that the Scheme plays in expanding the mobility of citizens with disabilities and that the relief has been maintained at current levels throughout the crisis despite the requirement for significant fiscal consolidation. From time to time I receive representations from individuals who feel they would benefit from the Scheme but do not qualify under the six criteria. While I have sympathy for these cases, given the scale and scope of the Scheme, I have no plans to expand the medical criteria beyond the six currently provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994.
230. Deputy Pearse Doherty asked the Minister for Finance the basis upon which banks are deciding on the definition of a prevailing tracker rate for persons being offered a tracker rate as a result of the Central Bank examination; and if he will make a statement on the matter. [16774/17]
Amharc ar fhreagraThe Central Bank has indicated that the scope of the Tracker Mortgage Examination covers both contractual rights of and transparency of communications with tracker mortgage customers. Issues in relation to margins will be dependent on contractual conditions, transparency and content of the documentation and disclosures made to individual customers concerned and, therefore, circumstances will differ from lender to lender. As the Examination progresses, where issues arise, the Central Bank will consider them to ensure the fair treatment of customers. The lender's external independent third party are also required to confirm to the Central Bank regarding adherence to the framework in carrying out the Examination to ensure that all relevant impacted customers are identified.
Impacted customers who are not happy with any aspect of the redress and compensation they receive, including the margin that they receive from their lender, can make an appeal to the Appeals Panel. This appeals process is in addition to impacted customer's rights to complain to the Financial Services Ombudsman, or to initiate legal proceedings before the courts.
231. Deputy Pearse Doherty asked the Minister for Finance the rates at which each of the State backed banks were offering tracker rate mortgages on 1 January in each of the years 2008 to 2013, in tabular form; and if he will make a statement on the matter. [16775/17]
Amharc ar fhreagraI have received the following information in response to the Deputy's question:
Permanent tsb
Permanent TSB had the below tracker rates available to New Home Loan (PDH) customers on 1st January (2008 to 2013). With regard to this the following should be noted:
- Where a range of rates / margins is quoted this varied depending on loan circumstances (eg. Loan to Value (LTV) and / or Loan Amount).
- In some cases the margin / rate quoted may have been for a discounted period and may not have been available for the term of the Mortgage.
- The tracker rates are representative of tracker rates available to Home Loan (Residential) customers only. These rates may not have been available for RIP or Commercial customers.
|
Home Loan - New Customers |
|
|
Rate |
|
|
01/01/2008 |
4.55% to 5.10% (ECB@4%) |
|
01/01/2009 |
Not available |
|
01/01/2010 |
Not available |
|
01/01/2011 |
Not available |
|
01/01/2012 |
Not available |
|
01/01/2013 |
Not available |
AIB:
AIB Group (which includes EBS and Haven brands) had the below tracker rates available to New Home Loan (PDH) customers on 1st January (2008 to 2013). With regard to this the following should be noted:
- Where a range of rates / margins is quoted this varied depending on loan circumstances (eg. Loan to Value (LTV) and / or Loan Amount).
|
Home Loan (PDH) Tracker Interest Rates available on 1st Jan 2008-2013 |
|||
|
|
AIB |
EBS |
Haven |
|
|
Rate |
Rate |
Rate |
|
01/01/2008 |
4.6% to 4.90%
(ECB@4%) |
4.6% to 5.25%
(ECB@4%) |
4.8% to 5.34%
(ECB@4%) |
|
01/01/2009 |
Not available for new business |
Not available for new business |
Not available for new business |
|
01/01/2010 |
Not available for new business |
Not available for new business |
Not available for new business |
|
01/01/2011 |
Not available for new business |
Not available for new business |
Not available for new business |
|
01/01/2012 |
Not available for new business |
Not available for new business |
Not available for new business |
|
01/01/2013 |
Not available for new business |
Not available for new business |
Not available for new business |
232. Deputy Carol Nolan asked the Minister for Education and Skills if he has read the submission of the Irish Human Rights and Equality Commission, IHREC, on the O'Keeffe ruling; if his attention has been drawn to the fact that the IHREC has requested that the Council of Ministers refer the ruling back to the court for interpretation; his views on this request; the action he will take to ensure that the issue is raised on the agenda of the next council meeting; and if he will make a statement on the matter. [16196/17]
Amharc ar fhreagraThe Department is aware of the submission by the Irish Human Rights and Equality Commission in relation to the implementation of the European Court of Human Rights judgment in the Louise O’Keeffe case. A number of other submissions have also been made in relation to the case. Given that the State is a party to the case and are tasked with implementing it's findings we are not commenting on this submission.
States are required to keep the Committee of Ministers informed of all developments as regards implementation of a judgment by way of lodging Action Plans, initially within six months of a judgment, and as necessary thereafter. To date, Ireland has lodged six Action Plans with the Council of Europe (July 2014, January 2015, July 2015, January 2016, July 2016 and January 2017) setting out the steps being taken to implement the judgment. A further Action Plan must be filed by 28 July 2017.
In June 2016, the Committee of Ministers decided that, in view of the progress achieved to date, to continue their supervision under the standard procedure rather than the enhanced procedure. This means that the Council of Europe secretariat, rather than the Committee of Ministers, are now supervising the implementation of the judgment.
The Government remains committed to ensuring that the judgment is implemented fully and expeditiously.
233. Deputy Carol Nolan asked the Minister for Education and Skills if private contractors providing school transport during the bus strikes will be paid as normal, particularly those which may have covered extra routes during the industrial action; and if he will make a statement on the matter. [16636/17]
Amharc ar fhreagraSchool transport is a significant operation managed by Bus Éireann on behalf of the Department.
Currently almost 116,000 children, including some 12,000 children with special educational needs, are being transported in over 4,000 vehicles on a daily basis to primary and post-primary schools throughout the country covering over 100 million kilometres annually.
Under the contract agreement with each contractor, payment in respect of amounts due to the contractor will be made within 30 days of a correctly completed invoice being received by Bus Éireann and payments will continue to be made in line with the contract agreement.
The Department has been advised by Bus Éireann that school transport contractors have been informed by Bus Éireann that due to industrial action beyond their control there was a delay processing payments of invoices last week.
Bus Éireann has however further advised that they have put in place a process that will ensure that payments due will be made this week.
234. Deputy Jonathan O'Brien asked the Minister for Education and Skills the reason rural areas have been removed from the current revised list of DEIS schools. [16014/17]
Amharc ar fhreagraGeographical areas are not categorised as DEIS. New schools included in the revised list of DEIS schools are those identified as having very high concentrations of pupils from disadvantaged areas.
No schools have been removed from the current revised list of DEIS schools.
In the context of the DEIS programme it is important to note that the categorisation of a school as urban or rural applies to Primary schools only. It relates to a school's geographical position and is not related to the assessed level of concentrated disadvantage of its pupil cohort. For clarity it should be noted that Post Primary Schools are not categorised as Urban/rural for the purposes of DEIS.
