Tuesday, 11 Apr 2017

Written Answers Nos 1-62

Cabinet Committees

Ceisteanna (15)

Timmy Dooley

Ceist:

15. Deputy Timmy Dooley asked the Taoiseach the Cabinet Committee which has responsibility in relation to public transport issues. [16462/17]

Freagraí scríofa

The Taoiseach

The Cabinet Committee on Infrastructure, Environment and Climate Action has responsibility for oversight of delivery of key infrastructure and associated policy, including commitments in the programme for a partnership Government. There is no specific Cabinet committee with responsibility for public transport issues.

Questions Nos. 16 to 26, inclusive, resubmitted.

Taoiseach's Meetings and Engagements

Ceisteanna (27)

Micheál Martin

Ceist:

27. Deputy Micheál Martin asked the Taoiseach if he has spoken to or met Chancellor Merkel since Article 50 was triggered. [16715/17]

Freagraí scríofa

The Taoiseach

My recent visit to Germany from 5 to 7 April included a bilateral meeting with Chancellor Angela Merkel, as well as extensive engagement with key trade, tourism and investment partners. The visit began in Frankfurt on Thursday morning where I had a series of meetings with Irish state agency client companies based in Germany. I officially opened the offices of the Irish company, Collen Construction, before giving a keynote speech to an event attended by more than 150 business guests. In my remarks, I emphasised the links between Ireland and Germany and our support for further strengthening investment, trade and tourism between our two countries.

On Thursday afternoon, I travelled to Berlin where I had a very positive and constructive bilateral meeting with Chancellor Merkel in the Federal Chancellery. Our discussions included Brexit, the future direction of Europe, and EU-US relations. On Brexit, we discussed the draft EU negotiating guidelines which were circulated on 31 March, following PM May's official notification of the UK's intention to leave the EU, and which will be agreed by the European Council on 29 April. In relation to the negotiations ahead, I emphasised that nothing should undermine peace and stability in Northern Ireland and that it is, therefore, crucial that there is no return to a hard border. This is a political challenge and we will need to be creative and imaginative in finding solutions, while respecting our EU obligations. Chancellor Merkel noted the references to Ireland's specific concerns in the draft guidelines and offered her strong support in this context. The language in the draft guidelines and indeed in the notification letter from Prime Minister May is a positive outcome of the Government's intensive programme of strategic engagement with EU partners and the EU institutions over recent months.

Germany, like Ireland, has significant and complex trading links with the UK. We both agreed that these should be maintained with minimum disruption and that we should work together to protect jobs, growth and investment. In exchanging views on the negotiations ahead, we agreed that these should be approached in a calm and constructive manner, with the aim of achieving a close and positive future relationship between the EU and the UK.

More generally, on the future direction of Europe, I highlighted the importance we attach to maintaining EU27 unity, based on our core values, and the need for a balanced response to current challenges, with a focus on better delivery for our citizens, particularly in relation to jobs, growth and competitiveness.

On Friday, I took part in a round table event organised by the Association of German Chambers of Commerce, which included representatives of the German-Irish Chamber of Commerce, German businesses and trade organisations, and which facilitated a useful exchange about the impact of Brexit from the Irish and German business perspective. I also participated in a meeting with a group of German think-tanks active on European, foreign and economic policy issues. This provided an opportunity to share views and impart key messages on Ireland’s perspectives in relation to Brexit and the future direction of Europe. Later that day, I launched the Bord Bia Irish Beef Food Truck, and met with a major premium wholesaler which supplies Irish-sourced products.

In all my meetings, I highlighted and explained Ireland's particular concerns arising from Brexit in relation to our trade and economy; Northern Ireland and the Peace Process; the Common Travel Area; border and citizenship issues; and the future direction of the EU. I placed particular emphasis on our strong ongoing commitment to EU membership, and our intention to work constructively and calmly, as part of the EU team, towards a close and positive future relationship with the UK.

Questions Nos. 28 to 35, inclusive, resubmitted.

Questions Nos. 36 to 42, inclusive, answered orally.

Community Employment Schemes Administration

Ceisteanna (43, 50, 70)

Charlie McConalogue

Ceist:

43. Deputy Charlie McConalogue asked the Minister for Social Protection his plans to allow the Tús scheme and the community employment schemes to retain current participants even if their term is complete in view of the fact that community groups are finding it difficult to recruit participants and in further view of the fact there are fewer participants available and, as a result, community groups are suffering and are finding it difficult to carry out their work; and if he will make a statement on the matter. [17614/17]

Éamon Ó Cuív

Ceist:

50. Deputy Éamon Ó Cuív asked the Minister for Social Protection his plans to extend the time it is possible for participants to remain on the Tús scheme; and if he will make a statement on the matter. [17612/17]

Charlie McConalogue

Ceist:

70. Deputy Charlie McConalogue asked the Minister for Social Protection his plans for the Tús scheme and the community employment schemes in view of the fact that many community groups are finding it difficult to recruit participants and as a result community groups are suffering and are finding it difficult to carry out their work; and if he will make a statement on the matter. [17613/17]

Freagraí scríofa

Minister for Social Protection

I propose to take Questions Nos. 43, 50 and 70 together.

As the Deputies are aware, my Department provides a range of activation supports and programmes catering for long-term unemployed jobseekers and those most distant from the labour market. These include programmes such as Community Employment (CE) and Tús.

These schemes provide part-time temporary work in local communities, as a stepping-stone back to employment. However, it is important to note that these placements are not full-time sustainable jobs. Instead, they are designed to break the cycle of unemployment and maintain work readiness, thereby improving a person’s opportunities of returning to the labour market or getting a job for the first time. This has to be the ultimate aim.

While the live register is falling, the level of support for work programmes has been maintained. The number of participants on work programmes rose from 25,000 in 2010 and, at the end of December 2016, was just over 32,000. The OECD has noted previously that Ireland was slow to reduce numbers on work programmes when unemployment fell and employment grew.

It is in this context that the Department undertook a comprehensive review of CE and other employment schemes. Overall, it is planned to maintain the overall number of scheme places available in 2017 at 32,000 and CE will account for the bulk of these places. In addition, the changes to be made over the coming months will widen the range of people who can take part in CE and this will improve the availability of people for the schemes which should help to address problems with filling vacancies.

Currently, participants can remain on Tús for 1 year and I have no plans to change this.

The Government is very mindful of the large number of places involved in service delivery and other valuable services around the country. In advance of implementing the changes consultations with stakeholders will be facilitated in the coming weeks.

Questions Nos. 44 to 49, inclusive, answered orally.

Question No. 50 answered with Question No. 43.

Departmental Reports

Ceisteanna (51)

Willie Penrose

Ceist:

51. Deputy Willie Penrose asked the Minister for Social Protection when the report on the consultation on bogus self-employment and disguised employment will be published; and the policy changes he plans to pursue. [17587/17]

Freagraí scríofa

Minister for Social Protection

An interdepartmental working group, comprising officials from the Department of Social Protection, the Department of Finance and the Revenue Commissioners, has been examining the issue of disguised or bogus self-employment.

To inform the work of the group, a public consultation on the use of intermediary-type employment structures and self-employment arrangements and their impact on tax and PRSI, was undertaken in 2016. This includes situations where an individual, who would otherwise be an employee, establishes a company to provide his or her services to an employer but who, though classified as self-employed, is dependent on, and under the control of, a single employer. It has been suggested that in some cases these types of arrangements may suit both the employer and the worker concerned but that in other cases employers use the arrangements to the detriment of workers. In both cases, if the arrangement does in fact constitute bogus self-employment, it results in reduced income tax and social insurance contributions. This is something that neither I nor the Minister for Finance is prepared to allow to continue.

Having said that it also has to be recognised that new, and legitimate, forms of working arrangements are emerging as the labour markets adapt to the opportunities presented by digitalisation, broadband communications and globalisation. This includes the emergence of more freelance type working arrangements - known as the gig economy - as well as new forms of trading - known as the sharing economy. While it is important that policy adapts to provide social protection for workers in these new and emerging forms of work it is equally important that it does not unnecessarily stifle social innovation. We have to be careful therefore in the steps that we take to tackle the issues that are arising and it is for this reason that we held the public consultation - to gather views of interested parties and stakeholders.

The consultation received 23 submissions from interested parties, including employers, trade unions, professional bodies and individuals. The working group is preparing a report which will present the views of these organisations and individuals, together with an analysis of the issues arising. I understand that the working group is currently finalising the report.

I look forward to seeing the report and I will then consider, along with my colleague the Minister for Finance, what changes might be required.

Community Employment Schemes Supervisors

Ceisteanna (52, 86)

Brian Stanley

Ceist:

52. Deputy Brian Stanley asked the Minister for Social Protection if he will ensure that the contracts for new community employment supervisors will be of the same duration as existing contracts; and if he will address the situation regarding job security for these supervisors. [17453/17]

Brian Stanley

Ceist:

86. Deputy Brian Stanley asked the Minister for Social Protection his plans regarding gratuity payments for community employment supervisors that have no pension entitlements; and if his officials will engage with the trade unions on this matter. [17454/17]

Freagraí scríofa

Minister for Social Protection

I propose to take Questions Nos. 52 and 86 together.

Community Employment (CE) Supervisors are employees of private companies in the community and voluntary sector. The period for which a CE Sponsor contracts with the Supervisor is, therefore, a matter between those two parties. In general, it is important that supervisor contracts reflect that the positions are subject to continued funding from the Department of Social Protection.

Supervisors (and participants) are excluded from the Section 9 provisions of the Protection of Employees (Fixed-Term Work) Act 2003 as they are “employees with a contract of employment which has been concluded within the framework of a specific public or publicly-supported training, integration or vocational retraining programme” under Section 2 of this Act. This means contracts for CE Supervisors cannot be of indefinite duration.

Given that CE Supervisors are employees of private companies in the community and voluntary sector, the State is not responsible for funding pension arrangements for such employees even where the companies in question are reliant on State funding. It is open to individual CE supervisors to make provision for a pension by way of PRSA which all employers are obliged to facilitate.

However, the Deputy should be aware that the issue of CE Supervisors’ pension provision is currently being looked at by a Community Sector High Level Forum which has been convened by the Department of Public Expenditure. My Department is represented on this group, as are IMPACT and SIPTU, the Department of Environment and Pobal. The Forum last met on 7 April, 2017 and I understand its work is ongoing.

Maternity Protection Entitlements

Ceisteanna (53)

Willie Penrose

Ceist:

53. Deputy Willie Penrose asked the Minister for Social Protection his plans to amend the rules on maternity benefit and maternity leave to allow for mothers of preterm babies by the time between the delivery date of the baby, the date the baby would have been delivered if full term or the date of the baby leaving the hospital, whichever is the later; and if he will make a statement on the matter. [17589/17]

Freagraí scríofa

Minister for Social Protection

Maternity leave is a matter for my colleague, the Minister for Justice and Equality. Maternity Benefit is paid by my Department for the duration of statutory maternity leave and is based on payment of PRSI contributions while working.

The current entitlement to maternity leave is 26 weeks paid with 16 weeks additional unpaid maternity leave also available. The Programme for Government includes a commitment to increasing paid parental leave in the first year of birth. Legislation currently provides for the postponement of maternity leave for up to six months when the child is hospitalised.

Under the Supplementary Welfare Allowance scheme, my Department can make a single exceptional needs payment (ENP) to help meet essential, once-off expenditure or an urgent needs payment (UNP) to people who would not normally qualify for SWA but who have an urgent need which they cannot meet from their own resources where no alternative is available.

As the Deputy is aware, Deputies Catherine Martin and Eamon Ryan tabled a Private Members Motion which was discussed by the Dáil on Wednesday 5 April 2017. The motion called on the Government ~"to extend the period of statutory maternity leave and maternity benefit for mothers of premature babies, by the length of time between the delivery date of the baby and either the date the baby would have been delivered if full-term or the date of the baby leaving hospital, whichever is later".

The Government did not oppose the motion, but in responding, signalled our intention to address the substantive issue in the context of the Family Leave Bill, which is being developed by my colleague Ms. Frances Fitzgerald T.D., Tánaiste and Minister for Justice and Equality. My Department will be consulting closely with the Department of Justice and Equality, the Department of Health and others in the formulation of precise legislative proposals.

State Pension (Contributory) Eligibility

Ceisteanna (54)

Clare Daly

Ceist:

54. Deputy Clare Daly asked the Minister for Social Protection his views on the fact that changes to the contributory State pension introduced in 2012 will result in tens of thousands, if not hundreds of thousands of workers, receiving in some circumstances, a pension of 60% below the full contributory State pension; and if he will make a statement on the matter. [17756/17]

Freagraí scríofa

Minister for Social Protection

The current rate bands applying to the State pension (contributory) were introduced from September 2012, replacing the rates introduced in 2000. The new rate bands reflect the social insurance contributions history of a person more closely, although alternative payments are available for those with small additional means. It is estimated that to revert to the previous bands would cost at least €60 million in 2018.

Since the new rate bands came into effect, less than 2% of new contributory pensioners are paid a contributory pension at the minimum 40% rate of €95.20. Four years after their introduction, this has amounted to 2,000 pensioners, and so it will in no way reach the levels suggested in the question.

Most people with a yearly average of 10-14 contributions may qualify instead for a non-contributory pension, the maximum rate of which is €227, or 95% of the maximum contributory rate. Over 70% of these are paid at the full rate. If someone does not qualify at a rate greater than €95.20, it is because they have been assessed as having household means in excess of €160, in addition to their State pension.

Otherwise, they may claim an Increase for a Qualified Adult on their spouse's state pension, based on their personal means. This is up to €213.50, or 90% the rate of the contributory pension, and over 80% of recipients are paid at that full rate. For such a person to be paid more on a 40% contributory pension, they would have to have additional personal means of more than €118 per week.

Those who receive a 40% rate pension are generally, therefore, among the minority of pensioners with very significant household and personal means.

I hope this clarifies the matter for the Deputy.

Community Employment Schemes Administration

Ceisteanna (55)

James Lawless

Ceist:

55. Deputy James Lawless asked the Minister for Social Protection the position regarding his Department's review of the operation of the Tús and community employment schemes; the difficulties caused to these schemes as a result of these schemes being outsourced to private providers; and if he will make a statement on the matter. [17714/17]

Freagraí scríofa

Minister for Social Protection

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 the JobPath service and employment programmes such as the Community Employment (CE) scheme and Tús. It is worth highlighting that CE and Tús have always been outsourced to private providers.

JobPath aims to place people into full-time sustainable employment. The period of engagement with the service for any individual is typically 52 weeks. During that time they receive intensive individual support to help them to overcome barriers to employment.

CE and Tús schemes are a stepping stone back to employment but are not full-time sustainable jobs. People who have completed their year long engagement with JobPath may, if eligible, apply to partake in a CE or a Tús scheme after they have been assessed by a Departmental case officer.

In general, people are not allowed participate in two separate schemes at the same time. Given the need to manage the allocation of places to all schemes in an effective manner, my Department does not facilitate or encourage jobseekers to leave one scheme early in order to take up a place on another.

The Deputy will appreciate that the welcome reduction in the unemployment rate is a factor in recruitment to all programmes. However, I recently announced changes which will widen the range of people who can take part in CE, including reducing the entry age to 21 and giving a second opportunity to people who have already taken part. These changes will be rolled out following a consultation process with stakeholders in the coming weeks.

I want to assure the Deputy that the work being done through programmes like CE and Tús is highly valued and recognised by Government and I believe that the changes I have outlined will affirm this.

Disability Support Services

Ceisteanna (56)

Margaret Murphy O'Mahony

Ceist:

56. Deputy Margaret Murphy O'Mahony asked the Minister for Social Protection the role his Department is playing to address the reality that persons with a disability are less likely to get a job and more likely to leave employment even when their disability does not create difficulties with everyday activities. [17457/17]

Freagraí scríofa

Minister for Social Protection

In Ireland, people with disabilities of working age are only half as likely to be in work as their non-disabled peers. Employment is central to independence and social integration and offers the best protection against poverty.

This Government is committed to helping more people with disabilities to enter the workforce and move from welfare to work. My Department provides a wide range of work related supports for people with disabilities, which are voluntary in nature.

These supports include the wage subsidy scheme, which is targeted at employers to encourage employment of people with disabilities and the EmployAbility service, which supports people with disabilities who wish to work through the provision of a dedicated job coach. My Department also provides a range of grants under the reasonable accommodation fund, which comprises employment supports to assist people with disabilities to access and retain employment, and the partial capacity benefit payment. The combined cost of these programmes is estimated to be in the region of €55 million in 2017.

The overall direction of the Government’s commitment to improving the employment rate of people with disabilities is outlined in the Comprehensive Employment Strategy (CES) for people with disabilities. Under the CES, my Department has responsibility for a range of commitments, which seeks to address the multiple barriers faced by people with disabilities in obtaining and retaining employment.

As part of delivering the CES, an interdepartmental group was set up to identify any significant disincentives for people with disabilities in taking up or returning to work. Just last week, this group published its findings in the report, “Make Work Pay for People with Disabilities”. The report sets out 24 key recommendations aimed at improving the employment and retention of people with disabilities.

At the launch of the report, I announced that some of the recommendations are already being acted upon. The first change is that people on a long-term disability payment, including disability allowance, will be able to keep their Free Travel Pass for five years after taking up work. This goes beyond the report’s own recommendation of three years. The Department is also launching a protocol to allow people to return to disability allowance seamlessly if work doesn’t work out within a year. Implementation of these recommendations and those assigned to other Government Departments and agencies will make a real difference to people with disabilities and help them to achieve their employment ambitions and economic independence.

The full report, as well as Easy to Read and Plain English versions, is published and available on the Department’s website, www.welfare.ie

I hope this clarifies the matter for the Deputy.

Citizen Information Services

Ceisteanna (57)

John Curran

Ceist:

57. Deputy John Curran asked the Minister for Social Protection his plans to promote local governance, management and independence of all MABS and CIS centres (details supplied); and if he will make a statement on the matter. [17461/17]

Freagraí scríofa

Minister for Social Protection

The board of Citizens Information Board (CIB) wants to improve the effectiveness, efficiency and responsiveness of its services. It aims to do this by restructuring the governance arrangements from 93 local company boards to a reduced 16 regional company board model. This will allow resources to be redirected from the current heavy administrative burden to front line service delivery. The changes will be at local company board level only and no closures or changes will occur at service delivery points. In other words, the frontline services provided by Citizens Information Services (CIS) and Money Advice and Budgeting Services (MABS) will continue to operate as they do currently regardless of changes implemented at board level.

The Board fully acknowledges the tremendous contributions that members of local boards have made to the development of CIS and MABS companies over the years, and appreciates that some of these individuals are keen to continue playing an active role. In recognition of this, and to continue to encourage this ethos, CIB plans to set up Local Advisory Groups. In addition, current local board members will be able to go forward for selection as members of the new regional boards.

The reduced company model will better support direct engagement with and by CIB, to implement new initiatives consistently, and facilitate greater interaction with fewer boards. This in turn will deliver faster responses to the modern day needs of service users. Those availing of CIS and MABS services will be assured that where they live does not impact on the level or quality of service they receive.

Importantly, the changes will bring the CIS and MABS organisations more into line with modern public service governance guidelines and requirements where significant State funding is involved. The new model will better assist CIB in the fulfilment of its statutory obligations, its compliance with the Code of Practice for Governance of State Bodies, and implementation of recommendations of the Office of the Comptroller and Auditor General.

In 2017, CIB is set to receive State funding of €54 million, of which €15 million is allocated to CIS services (including €13.1 million to the 42 local Citizens Information Services, €1.2 million to Citizens Information Phone services and, the balance, €0.7 million to central and other supports), and €24.6 million is allocated to the network of MABS services (including €15.4 million to the 51 local MABS, €0.3m to National Traveller MABS, €2.0 million to MABS National Development Company, €3.3million to the MABS Dedicated Mortgage Arrears initiative, €3.5 million to the Abhaile service, and the remaining €0.1m to MABS central supports).

The valuable work carried out by the employees and volunteers working in CIS services and the employees of MABS services will continue as heretofore. The planned structural changes in no way threaten the continuing access to, or extent of, information and assistance provided by locally based front line services to those who need it.

I hope this clarifies the matter for the Deputy.

Rent Supplement Scheme Eligibility

Ceisteanna (58, 87)

Gino Kenny

Ceist:

58. Deputy Gino Kenny asked the Minister for Social Protection if he will review FIS means testing with the rent allowance payment in view of the fact prior to 2012 FIS was not calculated when means testing for rent allowance; and if he will make a statement on the matter. [17716/17]

John Brady

Ceist:

87. Deputy John Brady asked the Minister for Social Protection if he will end the current situation in which child maintenance is included as a source of income in the calculation of rent supplement for lone parents; and if he will make a statement on the matter. [17951/17]

Freagraí scríofa

Minister for Social Protection

I propose to take Questions Nos. 58 and 87 together.

Rent supplement plays a vital role in housing families and individuals, with the scheme supporting 44,800 recipients at a cost of €253 million in 2017.

Rent supplement is a statutory means tested scheme which is payable at differentiated rates of payment taking into account the applicant’s means and their accommodation requirements. Rent supplement is normally calculated to ensure a person, after the payment of rent, has an income equal to the rate of supplementary welfare allowance (SWA) appropriate to their family circumstances less a weekly minimum contribution which recipients are required to pay from their own resources. The standard weekly minimum contribution is €30 for a single person and €40 for a couple. Many recipients pay more than this amount because recipients are also required, subject to income disregards, to contribute any additional assessable means that they have over and above the appropriate SWA rate towards their accommodation costs to ensure the payments under the scheme target those most in need of assistance.

The rent supplement assessment provides for a gradual withdrawal of payment as hours of employment or income increase. Income from employment and family income supplement (FIS) in excess of the standard SWA weekly rate of payment attract an additional income disregard and are assessed as follows; the first €75 of such additional income together with 25% of any additional income above €75 can be disregarded for means assessment purposes. For rent supplement, maintenance payments of up to €95.23 per week are assessed in determining the appropriate rate payable (vouched weekly rent or mortgage costs of up to this amount are disregarded in establishing the rate of one-parent family payment payable). Where a person has weekly maintenance payments of more than €95.23, it is assessed under rent supplement using the formula as outlined.

Any changes to the conditions of the rent supplement scheme can only be considered in a budgetary context. I trust this clarifies matters for the Deputies.

Social Welfare Code

Ceisteanna (59)

David Cullinane

Ceist:

59. Deputy David Cullinane asked the Minister for Social Protection his plans for a basic income as outlined in the speech of the Minister for Public Expenditure and Reform (details supplied); and if he will make a statement on the matter. [10497/17]

Freagraí scríofa

Minister for Social Protection

The speech referred to was made, not by me, but by my colleague the Minister for Public Expenditure and Reform, Pascal O’Donohue.

In his speech, Minister Donohue did not outline plans for a basic income.

Rather, speaking in the context of possible total displacement of labour from large parts of the economy (by advances in robotics), the Minister included the concept of a basic income as one of a number of ideas that might need to be explored as a response to such a development.

Displacement of human work on this scale is not certain to occur at any stage, and there is certainly no indication that it is likely to occur in the near future. To date, as noted in the Minister’s speech, “unemployment levels have ebbed and flowed more as a consequence of the economic cycle than ongoing technological advances.” The deputy will be aware, in this context, that employment in Ireland has been growing strongly, and unemployment falling rapidly, since the recovery from the recession began in 2012.

The government does not, therefore, have any plans to introduce a basic income scheme. The tax and social welfare system is continually reviewed, in the budgetary process and otherwise, in terms of its impact in redistributing income while ensuring the maintenance of incentives for people to contribute to society through employment. We are aware that limited experiments with what might be referred to as “partial” basic income approaches are underway or planned in other countries. We will follow the outcome of these experiments with interest to see if they provide any lessons that might be applied to aspects of the Irish system.

State Pension (Contributory)

Ceisteanna (60)

Thomas P. Broughan

Ceist:

60. Deputy Thomas P. Broughan asked the Minister for Social Protection if a percentage of the €400 million surplus in the social insurance fund will be used to backdate pension payments to the 43,000 pensioners receiving lower pensions since the PRSI band changes announced in budget 2012; and if he will make a statement on the matter. [10492/17]

Freagraí scríofa

Minister for Social Protection

The social insurance fund (SIF) had a surplus of €453 million in 2016.

It should be noted that as a result of demographic pressures, expenditure on pensions increases by approximately €1 billion every five years, and this is without taking account of any rate increases. An Actuarial Review of the Social Insurance Fund is currently being carried out, which will assess the financial "health" of the Fund in the coming years, and this will inform decisions on expenditure relating to the Fund. It should be remembered that the fund does not just finance pensions, but also includes a range of payments for people of working age.

The current rate bands for State pension (contributory) were introduced from September 2012, replacing the previous bands which had been in place since 2000. They more accurately reflect the social insurance history of a person, and ensure those who contribute more during a working life benefit more in retirement than those with lesser contributions.

Entitlement is banded based on the average yearly contributions made during a working life. Those with a yearly average of 48+ contributions receive a 100% pension, where, for example, those with only a yearly average of 20 contributions receive an 85% pension (not means-tested).

It is estimated that reverting the contributory pension rate bands, to the percentages effective from 2000-2012, would cost over €60 million next year, and this annual cost would rise at a rate of approximately €10 million per annum. If such a change was introduced, it would mainly benefit pensioners with additional income above the State pension, and not those solely dependent upon it. It would also significantly reduce the funds available for across-the-board pension increases, which were instead introduced in the 2016 and 2017 Budgets, and which benefit all pensioners, including those most at risk of poverty.

Reforms and increases in the pension age have safeguarded the pension system and its core rates, despite huge demographic pressures and the economic crisis. By achieving this, even in such difficult circumstances, the Government has shown its commitment to supporting older people, as evidenced by CSO figures which show pensioners far less likely to experience consistent poverty than the general population.

For those with insufficient contributions to meet the requirements for a State pension (contributory), they may qualify for a means tested State pension (non-contributory), the maximum personal rate for which is €227 (over 95% of the maximum rate of the contributory pension).

I hope this clarifies the matter for the Deputy.

Public Services Card Provision

Ceisteanna (61)

Catherine Connolly

Ceist:

61. Deputy Catherine Connolly asked the Minister for Social Protection if it is expected that his Department will meet the target of issuing 3 million public services cards by the end of 2017; the reason for the four-year delay in issuing these cards; and if he will make a statement on the matter. [17949/17]

Freagraí scríofa

Minister for Social Protection

To date, my Department has issued over 2.5 million Public Services Cards (PSC) and it is the Department’s intention, with the assistance of increased demand from other public bodies, to issue a further 500,000 by the end of 2017.

The issuance of PSCs is part of a large, complex, multi-year project called SAFE. The project aims to provide all public bodies with a substantial level of assurance as to the identity of customers that present and to provide customers with a simple, easy-to-use, secure means of verifying their identity to public bodies. In this way customers should have a consistent way of proving who they are and not have to repeat laborious identity verification processes each time they avail of a public service.

The SAFE project was initially developed by an interdepartmental committee in the early-mid 2000s. While at that juncture it was envisaged that the project would be rolled out by 2013, a range of factors impacted on this in the mid-late 2000s.

Firstly, arising from the economic downturn from 2008 onwards, my Department experienced a rapid and unprecedented increase in demand for services and customer numbers. As a result of then Government Decisions, it was also required to undertake the integration of two other organisations and introduce significant new processes. These matters took priority over all other projects resulting in some delay to the SAFE project.

Secondly, these significant new demands, customer numbers and associated staff increases required the Department to upgrade and expand its central technical infrastructure which obviously took priority over all other technical projects, including the PSC project. This meant that the new PSC functionality could not go live until autumn 2011 at the earliest.

Finally, plans for the PSC also included a free travel variant for those with that entitlement so that the insecure paper free travel pass could be replaced. The development of this variant of the PSC was dependent on the availability of a suitable technical specification from the Railway Procurement Agency for it to work with the integrated ticketing system (ITS). This specification did not become available until the latter part of 2013 resulting in the free travel variant of the PSC not issuing until December 2013.

Given that these delays were outside the control of the project itself and its management, the project is on schedule to be completed with thin the 4-5 year period originally envisaged for its duration.

I hope this clarifies the matter for the Deputy.

Public Services Card Authentication

Ceisteanna (62)

Catherine Connolly

Ceist:

62. Deputy Catherine Connolly asked the Minister for Social Protection the extent to which other public bodies can authenticate the public services cards; the regulation involving such data sharing; the level of privacy involved; and if he will make a statement on the matter. [17950/17]

Freagraí scríofa

Minister for Social Protection

In conjunction with a number of other Government Departments a rules based standard for establishing and authenticating an individual’s identity for the purposes of access to public services called SAFE was developed in the early-mid 2000s. SAFE registration, based primarily on a face-to-face engagement, is the most robust identity registration process in the State and consequently provides a substantial assurance of a person’s identity. Successful registration leads to a verification of a person’s Public Services Identity (PSI) data (which includes elements such as a person’s PPS number, name, address, date of birth, place of birth, nationality, photograph, signature, etc.). It also results in the issue of a Public Services Card (PSC) incorporating the person’s photograph and signature. Accordingly, possession of a PSC gives significant assurance as to the identity of the cardholder. The PSC was introduced to assist people in accessing a range of Government services. This card was designed to replace the free travel pass and the social services card of my Department and to enable other providers of public services to verify the identity of their customers.

Built on top of the PSC infrastructure, a new online identity service called MyGovID provides an easy-to-use, safe and consistent way to securely access online Government services.

In addition to Social Welfare schemes, SAFE registration is now a requirement for both first time adult passport applicants in the state and for citizenship applicants. The Office of the Revenue Commissioners has also started making SAFE a requirement for some of its services. Later this year SAFE will be required for Driver Theory Test applicants and adult passport renewals in the state. In 2018 the requirement will roll out to Driving Licence Applicants and applicants for Student Universal Support Ireland. Other public bodies are also examining how they may be able to use the SAFE infrastructure for their identity requirements.

Section 262 of the Social Welfare Consolidation Act 2005 provides the legal basis for the administration and exchange of PSI data. Persons are required by section 262(4) to provide their PPS Number to Specified Bodies for the purpose of a transaction. Provision is also made in the section for sharing a person’s PSI data between Specified Bodies and such Specified Bodies are expressly authorised to use a person’s PSI data in the performance of their public functions insofar as they relate to the person concerned.

To ensure proper governance of PSI data and to ensure public bodies comply with the relevant provisions of the Social Welfare Consolidation Act 2005 and data protection law, a Memorandum of Agreement is signed between each Specified Body and my Department regarding access to the Department’s records and the obligations of the body with regard to such access. In addition all organisations provided with access must nominate a Compliance Officer. The Compliance Officer has a number of responsibilities including, the nomination of named users; ensuring that these users understand their responsibilities under the relevant legislation, agree an access protocol and sign a data protection declaration; carrying out random audits; and ensuring that only named users have access to the data. Separately, all accesses are recorded and are subject to audit.

I hope this clarifies the matter for the Deputy.