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Gnáthamharc

Wednesday, 5 Apr 2017

Written Answers Nos. 115-126

Visa Applications

Ceisteanna (115)

Bernard Durkan

Ceist:

115. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Justice and Equality if a visa will be reviewed in the case of a person (details supplied); and if she will make a statement on the matter. [17039/17]

Amharc ar fhreagra

Freagraí scríofa

I am advised by the Irish Naturalisation and Immigration Service (INIS) of my Department that the visa application referred to was refused by the Visa Office in Dublin and the decision communicated to the applicant on 22 March 2017. The applicant was advised that an appeal could be submitted within two months of the date of the visa refusal. No appeal has been submitted as yet. If an appeal is to be made, the applicant should bear in mind the refusal reasons set out in the decision and be in a position to fully address them.

Queries in relation to the status of individual immigration cases may be made directly to INIS by e-mail using the Oireachtas Mail facility which has been specifically established for this purpose. This service enables up-to-date information on such cases to be obtained without the need to seek information by way of the Parliamentary Questions process. The Deputy may consider using the e-mail service except in cases where the response from INIS is, in the Deputy's view, inadequate or too long awaited.

Criminal Law

Ceisteanna (116)

Noel Rock

Ceist:

116. Deputy Noel Rock asked the Tánaiste and Minister for Justice and Equality if she will introduce legislation to implement stronger penalties for those who are found to be shoplifting and particularly in cases in which the shop owner or staff are assaulted; and if she will make a statement on the matter. [17044/17]

Amharc ar fhreagra

Freagraí scríofa

The law relating to theft is contained in the Criminal Justice (Theft and Fraud Offences) Act 2001. A person guilty of theft is liable to a penalty of a fine or up to ten years' imprisonment or both. The Deputy may also wish to note that the offence of robbery, under section 14 of that Act, is committed where a person steals, and immediately before or at the time of doing so, and in order to do so, uses force on any person or puts or seeks to put any person in fear of being then and there subjected to force. This offence carries a maximum penalty of life imprisonment. Under section 53 of the Act, where the facts of a case constitute a minor offence, the defendant may be tried summarily if certain conditions are met. In that event, the maximum penalty that may be imposed is 12 months' imprisonment or a class A fine.

A person who commits an assault may also be convicted of an offence under the Non-Fatal Offences Against the Person Act 1997. The offences in this Act include assault (section 2), carrying a penalty of up to 6 months' imprisonment or a fine or both, assault causing harm (section 3), carrying a penalty of up to 5 years' imprisonment or fine or both and assault causing serious harm (section 4), which carries a penalty of up to life imprisonment or a fine or both.

In determining the sentence to be imposed in any particular case, the trial judge may take into account all the circumstances of the case, including any aggravating or mitigating factors.

Having regard to this, I am satisfied that the penalties which apply in this area are sufficient. While I do not have any plans at present to amend the legislation, I will continue to keep the matter under review.

Deportation Orders Re-examination

Ceisteanna (117)

Bernard Durkan

Ceist:

117. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Justice and Equality further to previous parliamentary questions and arising therefrom in the case of a person (details supplied), if she will defer the proposal to deport pending a review of the evidence currently en route under separate cover; and if she will make a statement on the matter. [17056/17]

Amharc ar fhreagra

Freagraí scríofa

I am informed by the Irish Naturalisation and Immigration Service (INIS) of my Department that the person concerned is the subject of a Deportation Order signed on 22 June 2011.

Representations were received from the person concerned pursuant to Section 3 (11) of the Immigration Act 1999 (as amended), to revoke the Deportation Order. Those representations are currently being considered and a further decision will be made in due course. The Deputy might wish to note that any such decision will be to 'affirm' or to 'revoke' the existing Deportation Order. In the mean-time, the Deportation Order remains valid and in place.

Queries in relation to the status of individual immigration cases may be made directly to the INIS of my Department by e-mail using the Oireachtas Mail facility which has been specifically established for this purpose. This service enables up to date information on such cases to be obtained without the need to seek information by way of the Parliamentary Questions process. The Deputy may consider using the e-mail service except in cases where the response from the INIS is, in the Deputy’s view, inadequate or too long awaited.

Legal Costs

Ceisteanna (118)

Róisín Shortall

Ceist:

118. Deputy Róisín Shortall asked the Tánaiste and Minister for Justice and Equality the resources available to persons defending themselves in court; her plans to help reduce the standard costs associated with defending oneself such as printing, photocopying of standard forms and so on; and if she will make a statement on the matter. [17058/17]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy is aware, all standard costs associated with defending oneself in court are borne by the persons defending themselves in court. However, these persons could qualify under the Civil Legal Aid Scheme or the Criminal Legal Aid Scheme should they meet the required criteria.

The provision of civil legal aid in the State is delivered through the Legal Aid Board which administers the Civil Legal Aid Scheme on foot of the Civil Legal Aid Act 1995 (as amended) and the Civil Legal Aid Regulations 1996 to 2016. All applicants for civil legal aid and advice are required to meet a merit test and financial eligibility criteria under section 29 of the Civil Legal Aid Act 1995 and the Civil Legal Aid Regulations 1996 to 2016. The vast majority of applicants granted legal aid and advice are also required to pay some contribution, with some exceptions, such as in regard to defence of District Court child care proceedings and in representation of victims in rape trials. In addition, there are some matters for which there are no financial eligibility criteria, such as legal services provided as part of Abhaile, the Government’s Mortgage Arrears Resolution Service, to a person who satisfies the criteria for admission to that scheme.

It should also be noted that the Civil Legal Aid Act provides that the Legal Aid Board may waive any contribution payable or accept a lower contribution on the grounds that a failure to do so would cause undue hardship to the applicant. The Legal Aid Board has a policy role in relation to the provision of civil legal aid and periodically brings proposals to my Department in relation to the financial eligibility and other criteria in relation to civil legal aid. I understand that the Legal Aid Board are to consider the criteria in 2017 and I will consider any proposal it may make in due course.

The Deputy will also be aware that the Criminal Justice (Legal Aid) Act 1962, which is the primary legislation covering the operation of the Criminal Legal Aid Scheme, provides that free legal aid may be granted, in certain circumstances, for the defence of persons of insufficient means in criminal proceedings. Under the 1962 Act, the courts, through the judiciary, are responsible for the granting of legal aid. My Department is responsible for the payment of fees and expenses to the legal practitioners. I have no function in the day to day operation of the scheme, the assignment of lawyers or the granting of aid which are matters for the court and, as such, are handled by the judiciary.

In regard to standard court fees, I wish to inform the Deputy that fees charged in the courts are set by means of Statutory Instrument. Court fees orders are made by myself as the Minister for Justice and Equality with the consent of the Minister for Public Expenditure and Reform. The Courts Service keeps its fee structure under continuous review in accordance with the power given to it under the Courts Service Act.

Garda Equipment

Ceisteanna (119)

Clare Daly

Ceist:

119. Deputy Clare Daly asked the Tánaiste and Minister for Justice and Equality the costs of breath testing equipment purchased by An Garda Síochána in each of the years 2006 to 2016. [17078/17]

Amharc ar fhreagra

Freagraí scríofa

I am informed by the Garda authorities that the Medical Bureau of Road Safety (MBRS) purchase breath testing equipment. The MBRS falls within the remit of my colleague, the Minister for Transport, Tourism and Sport, Mr. Shane Ross, T.D. To be of assistance, my Department will make arrangements for the MBRS to respond to the Deputy's question directly.

Legal Aid Service Expenditure

Ceisteanna (120)

Niall Collins

Ceist:

120. Deputy Niall Collins asked the Tánaiste and Minister for Justice and Equality the cost of provision of criminal free legal aid and civil free legal aid in County Limerick in each of the years from 2009 to 2016, inclusive; and if she will make a statement on the matter. [17143/17]

Amharc ar fhreagra

Freagraí scríofa

The position in relation to payments under the Civil Legal Aid Act 1995 and the Criminal Legal Aid Act 1962, as amended, is set out as follows.

Criminal Legal Aid

The Criminal Justice (Legal Aid) Act 1962, which is the primary legislation covering the operation of the Criminal Legal Aid Scheme, provides that free legal aid may be granted, in certain circumstances, for the defence of persons of insufficient means in criminal proceedings.

The cost of criminal legal aid provided in respect of cases which were before the Courts in County Limerick in each of the years 2009 to 2016 is as follows:

Year

Amount of Expenditure (€)

2009

2,670,988

2010

2,370,426

2011

2,138,382

2012

1,983,567

2013

1,914,361

2014

2,060,344

2015

1,717,567

2016

2,248,793

Under the 1962 Act, the courts, through the judiciary, are responsible for the granting of legal aid. Under the Constitution, the State is obliged to provide an accused person with the means to obtain appropriate legal representation. Moreover, the European Convention on Human Rights provides that every person charged with a criminal offence is entitled to defend themselves in person or through legal assistance of their own choosing, if they have insufficient means to pay for legal assistance, to be given it free when the interests of justice so require.

Civil Legal Aid

The Legal Aid Board, established under the Civil Legal Aid Act, 1995 provides civil legal aid and advice to persons of limited means, who cannot afford to pay a solicitor privately. The Legal Aid Board operates 30 full time law centres and a number of part time law centres in Ireland. The Board also provides mediation services in 17 offices around the country to help separating couples to negotiate their own agreement.

It is not possible to extract and isolate the total cost of civil legal aid in any one office/county in a given year as it would be necessary to devise a basis on which to attribute, to each county, all expenditure incurred by the Board centrally. Complexities may also arise at local level with regard to the delivery of civil legal aid; for example a client living in County Limerick may choose to apply to Ennis Law Centre. Also, in a case where two parties to a dispute seek the services of the Board at one law centre, one party will be required to engage with a different law centre, which may be in a neighbouring county.

The majority of the Board's income consists of a grant received from the Department of Justice and Equality. Funding provided by the Government from the year 2009 to 2016 totals almost €264 million, the breakdown of which is shown in the following table. This funding is used to provide the Board's services in all its offices across the country, as well as the support services provided to law centres centrally from the Board's head office.

Year

Amount of Expenditure (€)

2009

€34,640,000

2010

€32,370,000

2011

€30,370,000

2012

€32,922,000

2013

€33,759,000

2014

€32,574,000

2015

€32,471,000

2016

€34,838,000

NAMA Social Housing Provision

Ceisteanna (121)

Ruth Coppinger

Ceist:

121. Deputy Ruth Coppinger asked the Minister for Finance his plans for national asset residential property services, NARPS, units leased under the social housing current expenditure programme, SHCEP, after NAMA ceases; his plans for private investors; and if he will make a statement on the matter. [17036/17]

Amharc ar fhreagra

Freagraí scríofa

The Deputy will be aware that NAMA has made a significant contribution, on a commercial basis to the delivery of social housing, through working closely with the Department of Housing, Planning, Community & Local Government and the Housing Agency.

To end 2016, NAMA offered 6,941 vacant houses and apartments owned by debtors and receivers to the Housing Agency, who liaised with the local authorities to determine demand for these properties. Of these, local authorities confirmed demand for 2,748 of these properties.  Of these, 2,378 properties have been delivered or contracted for delivery to local authorities and approved housing bodies for use as social housing.  It is important to note that NAMA has no role in identifying the suitability of these properties for social housing and has no involvement in the selection of occupants for these properties.

To facilitate the delivery of these residential properties, NAMA established a special purpose vehicle, National Asset Residential Property Services ("NARPS").  The establishment of NARPS has streamlined social housing delivery to local authorities and approved housing bodies both by significantly reducing the up-front capital costs for local authorities in the delivery of these properties for use as social housing and by providing NAMA, the owner of NARPS, with an attractive commercial income stream.

NARPS purchases properties directly from NAMA debtors and receivers, at market value.  NARPS then onward leases these properties to local authorities and approved housing bodies on long term (20 year 9 months) leases, which include an option for the local authorities or approved housing bodies to purchase the unit at market value towards the end of the lease term.

Of the 2,378 houses and apartments delivered for social housing to end of last year, 1,019 of these were delivered through NARPS and a further 337 properties are contracted for acquisition by NARPS.  In 2016, 85% of all units delivered for social housing by NAMA were delivery through NARPS.  The NARPs portfolio comprises properties primarily located in Dublin (43%) and Cork (23%) and comprises 61% apartments and 39% houses. 

As I discussed in my response to parliamentary questions 72 and 73 on 10 December 2015, NAMA has a number of potential options regarding its strategy for NARPS in the context of its overarching mandate.  Decisions relating to this strategy are a matter for the NAMA Board and I am advised that such matters are actively considered in the context of NAMA's ongoing activities. To my knowledge - and I am assured I and my officials will remain informed - while such issues are actively considered, there are no immediate plans to dispose of NARPS.  Furthermore, while under active and ongoing consideration, there are no definitive plans regarding assets which may remain in NAMA when NAMA ceases, not least because the definitive composition of such assets cannot yet be known with certainty.

NARPS is a subsidiary of NAMA and I assume that NAMA will have the opportunity to dispose of its interest in NARPS as part of its ongoing deleveraging.  However, it is important to note that regardless of the disposal option that is ultimately determined by the NAMA board, it is envisaged that the existing contractual agreements and long term leases between NARPS and the local authorities and approved housing bodies will remain in place and the rights of each party under those contracts will not be adversely affected.

Disabled Drivers and Passengers Scheme

Ceisteanna (122)

Shane Cassells

Ceist:

122. Deputy Shane Cassells asked the Minister for Finance if he will allow cystic fibrosis to be listed as a disease whereby those with the condition or their carers avail of the disabled drivers and disabled passengers scheme; and if he will make a statement on the matter. [16890/17]

Amharc ar fhreagra

Freagraí scríofa

The 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.

Bank Branch Closures

Ceisteanna (123, 130)

Niamh Smyth

Ceist:

123. Deputy Niamh Smyth asked the Minister for Finance if he will contact a bank (details supplied) to retain its ATMs at its branches in Arva and Cootehill in County Cavan and if it will consider introducing an ATM in Carrickmacross, which were all announced for closure last week; and if he will make a statement on the matter. [16896/17]

Amharc ar fhreagra

Niamh Smyth

Ceist:

130. Deputy Niamh Smyth asked the Minister for Finance his plans to enforce the introduction of permanent ATMs in circumstances in which a bank has closed its branch in a small town which has been left with no banking facility and no ATM for withdrawing money; his views on the impact the closure of a bank and ATM has on a town or village; the action he will take to support these towns by way of legislation; and if he will make a statement on the matter. [16966/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 123 and 130 together.

I should say at the outset that I note with regret that Ulster Bank is closing a significant number of branches with considerable negative impacts on both staff and customers alike. 

However, I should stress that the Irish Government has no formal role in the commercial decisions of Ulster Bank, or any other bank, as to their future business model. This is a matter for the Board and Management of a bank itself.

The recent Ulster Bank closures are a response to changing ways of banking due to less use of cash, increased use of technology and corresponding reduced visits to branches. That said, I expect that Ulster Bank will do everything that it can to mitigate the impacts of these branch closures on local communities, including technology and the use of alternative means of service delivery.  I also expect that the bank will ensure that customers are kept informed about developments and provided with the appropriate assistance to move branches, switch to other banks and avail of alternative means of accessing financial services. The Central Bank will also have a role in ensuring that consumer protection rules are followed.

I understand from discussions with officials in Ulster Bank that their current intention is to retain an ATM at Arva and Cootehill, County Cavan, while Carrickmacross, County Monaghan will be served by a Mobile Bank which will operate in that area. In all locations Ulster Bank are committed to working with the local community to ensure a service is maintained.

Finally, the continued presence of a viable and active Ulster Bank in the Irish market will be important in fostering competition for banking services. It is vital that businesses and consumers have a range of banking options available when using financial services and accessing credit and that they continually assess their options to ensure that they are getting the best value and service possible.

Help-To-Buy Scheme Data

Ceisteanna (124)

Tony McLoughlin

Ceist:

124. Deputy Tony McLoughlin asked the Minister for Finance the extent to which first-time buyers' incentives are assisting persons and in particular in counties Sligo and Leitrim; and if he will make a statement on the matter. [16927/17]

Amharc ar fhreagra

Freagraí scríofa

I assume that the Deputy's enquiry relates to the Help to Buy scheme (HTB).

Applying to the Revenue Commissioners for the HTB incentive is a two-stage process. Individuals must first submit an application for the incentive to receive an indication of the level of tax relief that may be available to them, and subsequently submit a claim for a tax refund where they have entered into a contract to purchase or have commenced to self build. The refund is generally payable to the contractor at the deposit stage in the case of a home purchase, or in the case of a self-build, is paid to the applicant when they have drawn down the first tranche of their mortgage.

Up to 31 March 2017 there were 4,698 applications made to Revenue in respect of the HTB incentive. Of these, 1,006 have proceeded to the claims stage of the process.

The breakdown of claims by county is as follows:  

Carlow 

10 

Cavan 

10 

Clare 

10 

Cork 

101

Donegal 

14

Dublin 

401

Galway 

34

Kerry 

10 

Kildare 

120

Kilkenny 

10 

Laois 

11

Leitrim 

10 

Limerick 

32

Longford 

10 

Louth 

12

Mayo 

10 

Meath 

92

Monaghan 

10 

Offaly 

10 

Roscommon 

10 

Sligo 

10 

Tipperary 

10 

Waterford 

24

Westmeath 

17

Wexford 

11

Wicklow 

66

Total 

1,006

 

I am advised by Revenue that for reasons of taxpayer confidentiality, where there are ten or fewer claims in a particular county, exact figures cannot be provided. Both counties Sligo and Leitrim fall into this category.

The deputy may wish to know that Revenue now regularly publishes statistics in relation to the HTB incentive (including a county-by-county breakdown of claims) on its website at:

www.revenue.ie/en/about/statistics/tax-expenditures.htm.

Brexit Issues

Ceisteanna (125)

Tony McLoughlin

Ceist:

125. Deputy Tony McLoughlin asked the Minister for Finance the steps he will take to counter the likely negative impact of Brexit here in view of the triggering of Article 50; and if he will make a statement on the matter. [16928/17]

Amharc ar fhreagra

Freagraí scríofa

The Department of Finance has been assessing and preparing for the impact of a British exit from the European Union since well before the referendum on 23 June 2016.

The challenges which we face as a result of Brexit are mainstreamed across all divisions of my Department and this is reflected in business planning. Work conducted in the Department to assess the potential economic and financial sector implications arising from Brexit, includes a scoping study in November 2015 under the Department of Finance-ESRI joint research programme; an initial short-term economic estimate published in the Summer Economic Statement 2016; an in-depth analysis of the possible sectorial and regional impacts of Brexit arising from Ireland's trade relationship with the UK, published with Budget 2017; and, a joint research paper with the ESRI that modelled the medium to long term macroeconomic impact of Brexit under a number of scenarios, including a WTO relationship. All of these outputs have been made public.

In April 2017, updated macroeconomic forecasts will be published by my Department, as part of the Stability Programme Update.

We know from our own published research that the potential impact on the Irish economy is significant.  It is important to recognise that the full impact of the UK's exit is only expected to materialise over time. As we cannot control the international environment, we will need to continue to improve our competitiveness, including by focussing on costs we can control, by boosting our productivity and ensuring sustainable public finances.

The best and most immediate policy under the Government's control to counter the likely negative economic impacts of Brexit is to prudently manage the public finances in order to ensure that Ireland's economy continues to remain competitive in the face of future economic headwinds.

Important steps have already been taken to prepare the economy. In Budget 2017, I confirmed the Government's intention to establish a rainy day fund, to commence in 2019 after Ireland has achieved its Medium Term Objective under the EU's fiscal rules and is running balanced or surplus budgets; I also announced the Government's decision to set a new domestic target of a debt to GDP ratio of 45 percent to be reached by the mid-2020s, or thereafter, depending on economic growth.  These decisions will help to ensure that the public finances can withstand negative impacts from Brexit or other economic shocks. Also in Budget 2017, I announced a number of sectorial measures to mitigate Brexit impacts in exposed sectors of the economy.

Officials from my Department are working closely with the Department of Jobs, Enterprise and Innovation and the Strategic Banking Corporation of Ireland (SBCI) to assess the potential impact of Brexit on the SME sector.  The Deputy may also wish to note that, aside from the SBCI, there are significant Government measures to support the financing needs of SMEs that are facing challenges (over 170 supports are provided by 30 separate agencies).  These measures include the Supporting SMEs Online Tool, the Credit Guarantee Scheme, the Microenterprise Loan Fund, Local Enterprise Offices and the Credit Review Office.  These supports will play an important role in assisting companies and SMEs to meet the challenges of Brexit.

Separately, Minister of State Eoghan Murphy T.D. has responsibility for Financial Services, including the implementation of the International Financial Services (IFS) 2020 Strategy.  Important work is ongoing, as part of IFS 2020, to ensure that we maximise opportunities for inward investment arising as a result of Brexit.

We are now at the start of a process within which there is expected to be a number of phases. The Department of Finance contingency work continues to examine all scenarios in relation to Brexit, and will continue to monitor the economic impacts, to carry out relevant analysis and to frame budgetary policy advice in this new context.  The work being done by the Department will help to ensure that Ireland will be in a position to respond to the economic challenges arising from Brexit and to ensure that Ireland's interests are protected in the upcoming negotiations at EU level.

Economic Competitiveness

Ceisteanna (126)

Tony McLoughlin

Ceist:

126. Deputy Tony McLoughlin asked the Minister for Finance the extent to which the economy remains competitive in view of Brexit and the triggering of Article 50; and if he will make a statement on the matter. [16929/17]

Amharc ar fhreagra

Freagraí scríofa

Significant progress has been made in recent years in improving Ireland's competitiveness.  The latest figures from the Central Bank of Ireland, show that Ireland's real harmonised competitiveness indicator (a widely used measure of competitiveness in Europe) has improved by over 20 per cent between its peak in 2008 and February 2017. This improvement has occurred notwithstanding the substantial appreciation of euro against sterling in the second half of last year, following the UK's vote to leave the EU last June.

The gains in Irish competitiveness since 2008 have been hard-won through productivity improvements and wage and price moderation. It is important that this competitiveness is preserved and continues to support growth.  This is all the more important given the risks posed by Brexit.

We must be cognisant that favourable exchange rate movements can reverse, as can be seen for example in the strengthening of the euro against sterling last year. Similarly, gains from the fall in oil prices may unwind in the future. Indeed, the drag on consumer prices from low oil prices is already beginning to ease. In addition, excessive rent and house price growth are also a potential threat to competitiveness.

These risks highlight the importance of maintaining competitiveness oriented policies, including sustainable fiscal policies, to help address emerging uncertainties. It is also important that at firm level, pay moves in line with productivity developments.

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