Written Answers Nos. 72-91
72. Deputy John Brady asked the Minister for Finance the reason a person's (details supplied) tax credits are affected by the person's widow's pension payment; and if he will make a statement on the matter. [18905/17]
Amharc ar fhreagraI am advised by Revenue that a widow's pension is taxable income. In the case of the person concerned, I am advised that the taxable income taken into account by Revenue has included the widow's pension payment since she was first in receipt of the payment in 2008 and there has been no change in that position.
If the person concerned requires any further clarification on any aspect of her tax credits she should contact her local Revenue District in Kilkenny who will be happy to assist her.
73. Deputy Michael McGrath asked the Minister for Finance the position on insurance companies charging extra for motor insurance policies in situations in which the policyholder is 70 years of age or over; if the Central Bank has plans to tackle this issue; and if he will make a statement on the matter. [18916/17]
Amharc ar fhreagraAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to direct insurance companies as to the pricing level that they should apply to particular categories of individuals.
I am advised that insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. These terms can include the age of the driver, as well as the type and age of car, the claims record, driving experience and penalty points of the driver, the number of drivers, how the car is used, etc. My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience.
Finally, the Deputy should note that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. Insurance Ireland can be contacted at feedback@insuranceireland.eu or 01-6761914.
74. Deputy Michael Fitzmaurice asked the Minister for Finance the reason banks providing merchant services to retailers have not passed on the reduction of the bank interchange rate to their customers following budget 2016 and in the Finance Act 2015; and if he will make a statement on the matter. [18939/17]
Amharc ar fhreagra75. Deputy Michael Fitzmaurice asked the Minister for Finance his plans to ensure banks providing merchant services to retailers pass on the reduction of the bank interchange rate to their customers given by the Minister in budget 2016 and in the Finance Act 2015; and if he will make a statement on the matter. [18940/17]
Amharc ar fhreagraI propose to take Questions Nos. 74 and 75 together.
In Budget 2016, I introduced measures to support retailers by reducing costs and incentivising electronic payments. I also announced an increase in the limit on contactless payments from €15 to €30 and reformed stamp duty to remove it from debit cards; replacing it with a 12c charge per ATM transaction though with a cap to ensure no consumer would be worse off.
In addition, I made changes to interchange fees faced by retailers accepting cards. I announced that an EU regulation would halve the interchange fee charged to retailers to 30 basis points for credit cards and that I was halving the corresponding fee for domestic consumer debit cards to 10 basis points. These changes came into effect on 9 December 2015 and significantly reduce the costs of accepting card payments, as interchange fees make up part of the overall charges collected by acquirers from retailers.
An acquirer is a financial services company (e.g. a bank, bank subsidiary or payment institution) which manages the account and relationship between a retailer and the various card schemes. All acquirers in Ireland are independent commercial entities and I have no statutory role in relation to the charges applied by acquirers, other than setting caps on interchange fees as I have done. Acquiring is a competitive market and I am aware that there have been developments in the market, and that a range of options is available to merchants from which to choose. The most appropriate option will depend on their circumstances, and retailers in general could stand to benefit from shopping around for lower rates from acquirers for accepting cards.
76. Deputy Noel Rock asked the Minister for Finance the estimated cost to date in 2017 and in previous years of the help-to-buy scheme. [18970/17]
Amharc ar fhreagraThe Help to Buy incentive aims to both assist those first-time buyers struggling to save for the deposit required to purchase a home, as well as incentivising additional building and the provision of extra housing stock. At Budget time, my officials estimated that the Help to Buy incentive would cost €40 million per annum but €50 million in 2017, due to the backdating of the relief in respect of properties which became eligible for the scheme since 19 July 2016. The scheme did not give rise to an Exchequer cost prior to 2017.
To avail of the incentive involves two stages. Stage 1 is the Application Stage, wherein prospective applicants can query whether they qualify for the incentive. They can also get clarity on the maximum amount of rebate they could potentially benefit from, based on their tax paid in a four-year period. Stage 2 is the Claims Stage, wherein applicants that decide to proceed with purchasing or building a qualifying property must provide documentary evidence of the relevant property transaction or their mortgage draw down.
As of 6 April 2017, Revenue has received 5,018 applications to Stage 1 of the Help to Buy incentive. Of these, 1,149 Stage 2 claims have been created to date. 665 of these have been approved, at a total estimated cost to the Exchequer to date in the order of €10.2 million.
The deputy may wish to know that Revenue regularly publishes statistics on the Help to Buy incentive (including the estimated cost of the incentive) at
http://www.revenue.ie/en/about/statistics/htb-incentive-stats.html
77. Deputy Pearse Doherty asked the Minister for Finance his views on a situation in which a bank (details supplied) is seeking a dispensation to pay the new chief executive officer more than the €500,000 salary cap and or build in a bonus or long term incentive scheme into their contract. [19001/17]
Amharc ar fhreagra78. Deputy Pearse Doherty asked the Minister for Finance when he expects a bank (details supplied) to appoint a new chief executive officer; and if he will make a statement on the matter. [19002/17]
Amharc ar fhreagra79. Deputy Pearse Doherty asked the Minister for Finance if a bank (details supplied) is engaging a recruitment agency or other external parties to mange the process of appointing a new chief executive officer; and if he will make a statement on the matter. [19003/17]
Amharc ar fhreagra80. Deputy Pearse Doherty asked the Minister for Finance if he will use his influence as a shareholder in the appointment of a new chief executive officer at a bank (details supplied); and if he will make a statement on the matter. [19004/17]
Amharc ar fhreagraI propose to take Questions Nos. 77 to 80, inclusive, together.
As the Deputy is aware, Bank of Ireland is an independent listed company on the Irish and London Stock Exchanges and must abide by stock exchange rules and best practice in relation to the dissemination of price sensitive information. In the bank's recent Stock Exchange announcement the current Group CEO confirmed his intention to step down from his role. It also stated that a succession planning process is now underway. In relation to the Deputy's questions on the process being followed including likely timing of an appointment and the engagement of external parties, BOI has confirmed that a further announcement will be made to the Stock Exchange at the appropriate time. For the benefit of the Deputy, the Stock Exchange announcement already issued by BOI can be found at the following link:
https://investorrelations.bankofireland.com//wp-content/assets/CEO-intention-to-step-down-24.03.2017.pdf
In addition, BOI has provided details of the selection process for all appointments to the Board on page 146 of its 2016 Annual Report which can be found at the following link:
https://investorrelations.bankofireland.com//wp-content/assets/BOI-Annual-Report-2016.pdf
On the matter of remuneration, given the State's minority shareholding in the bank, and the terms of the outgoing CEO's remuneration package, should the bank's preferred candidate be an external individual of the required calibre and with the necessary experience for the role, I am willing to consider an exception to the pay cap. However as no proposal has been presented to me, it would not be appropriate for me to comment further on the matter at this point in time.
In relation to using my influence as a shareholder in the appointment, I would highlight for the Deputy that it is the responsibility solely of the Board of the bank to run the process and to ensure that the best candidate is chosen in the best interests of all shareholders. Following the appointment, I will be entitled to vote, as a 14% minority shareholder, on the election and subsequent re-election of the CEO to the Board as part of the bank's Annual General Meeting process, as is the case with all other directors of the Bank.
81. Deputy Róisín Shortall asked the Minister for Finance the reason for the apparent contradiction in the growth of employment and the reduced income tax take in 2016; and if he will make a statement on the matter. [19040/17]
Amharc ar fhreagraI assume that the Deputy is referring to the income tax yield in the first quarter of 2017. The income tax performance in 2016 was solid with receipts of €19,169 million recorded, finishing the year 0.9 per cent or €174 million above target. This represented a strong year-on-year increase of 4.4 per cent or €810 million.
In relation to the first quarter of 2017, the position is that income tax recorded annual growth of 1.4 per cent or €62 million in the year to-end-March. However, income tax receipts of €4,417 million were 3.9 per cent below profile. The shortfall against target is attributable across a range of income tax components.
It is important to point out that income tax encompasses a broad range of components, some of which are not directly impacted by employment or wage developments. These include Deposit Interest Retention Tax, Life Assurance Exit Tax, Dividend Withholding Tax and Back Duty, with some of these components having a drag on the overall income tax receipts in the first quarter of 2017.
The Revenue Commissioners inform me the PAYE component of USC is €63 million or 7 per cent below profile, which represents a year-on-year decrease of 12 per cent (€107 million). The Deputy will appreciate that a reduction in USC was expected in 2017 given the measures I introduced in Budget 2017. Notwithstanding this, the performance of USC is lower than expected and the Revenue Commissioners, along with officials from my Department, are looking into the matter.
Furthermore, it should be noted that we were in a similar position at the end of the first quarter in 2016 income tax was up 2.7 per cent (€114 million) year on-year, but down 3.4 per cent (€153 million versus profile). However, due to a pick-up in receipts throughout the remainder of year, income tax finished 2016 ahead of target.
In terms of consistency with employment growth, I would point out that PAYE is up 6 per cent and PRSI is up 7 per cent in the first quarter compared to the same period last year, both of which indicate that employment continues to grow strongly.
Finally, I would highlight that, with just three months tax data, it remains too early to discern any firm trends.
82. Deputy Michael McGrath asked the Minister for Finance the details of the sales process engaged in by NAMA in respect of a project (details supplied); if the process was an open and competitive process; the number of bidders or potential bidders that were involved in different stages in the process; if a restricted number of parties were invited to make offers; the actual number of parties that were invited to make a bid; and if he will make a statement on the matter. [19046/17]
Amharc ar fhreagra83. Deputy Michael McGrath asked the Minister for Finance if NAMA debtors had engagement with the bidders prior to the sale of a NAMA project (details supplied) being finalised; and if he will make a statement on the matter. [19047/17]
Amharc ar fhreagraI propose to take Questions Nos. 82 and 83 together.
The Deputy will be aware that Section 9 of the NAMA Act provides that NAMA is independent in the performance of its functions and that, under Section 10 of the Act, its primary objective is to obtain the best achievable financial return for the State from its acquired loan portfolio. The NAMA Board exercises its judgement as to how best to fulfil its Section 10 objective bearing in mind the particular facts and complexities associated with each decision with which it is faced.
I am advised by NAMA that the Project Tolka loan sale was a complex transaction comprising the loans of a number of major debtor connections and encompassing a total of 186 obligors. I am further advised that preparatory work in relation to the sale took at least two years and that NAMA considered a range of disposal options by reference to its Section 10 objective. The full cooperation of the debtors was key to achieving the maximum value of the portfolio given the complexities involved.
I am advised that this preparatory phase involved consideration of a range of options to maximise disposal proceeds including consideration of various approaches by potential purchasers which had been made directly to the major debtor connections to acquire some or all of their assets. The debtor connections extensively consulted with NAMA regarding options for the portfolio including identification of potential parties for inclusion on a panel of credible bidders in the event of a loan sale.
NAMA advise that sixteen potential acquirers were initially considered, seven of which were not included in the list of potential bidders based on advice from the loan sales adviser, Eastdil Secured, as to their appetite and suitability for a portfolio of this type. I am further advised that NAMA, acting on the advice of its loan sale adviser and legal advisers, and the debtor connections agreed a list of nine potential credible bidders based on a number of criteria including financial capacity, experience in purchasing and managing similar portfolios and their interest in investing in assets similar to the underlying secured assets in the Tolka portfolio.
I am advised that NAMA initiated a targeted marketing process for the sale of the portfolio based on the advice of its loan sales adviser that, by comparison with all other disposal options, such an approach would significantly enhance the proceeds generated for NAMA. NAMA is prohibited by law from disclosing confidential information in relation to debtors and their assets and is therefore constrained from disclosing the particular considerations which formed the basis for the adviser's recommendation that a targeted marketing process would maximise the State's return in this particular instance.
I am advised by NAMA that after the Project Tolka loan sale process commenced, bidders were precluded, under the terms of confidentiality agreements with NAMA, from contacting debtors without the written consent of NAMA or its loan sale adviser. I am advised that no such consent was sought.
I am advised that the loans sales adviser engaged with six of the potential credible bidders to ascertain their level of interest in bidding for the portfolio. Following this consultation, three potential bidders were selected based on their interest in the portfolio and on their willingness to meet NAMA's minimum reserve price for the portfolio. The minimum reserve price had been established by reference to up-to-date independent valuations of the underlying secured assets.
NAMA's adviser confirmed to NAMA that the short-listed panel of bidders was sufficient to ensure a competitive process and that the short-listed parties had sufficient funds to complete the transaction. I am advised that the process was predicated on the receipt of three competitive bids and would not have completed unless three such bids were received.
Finally, I am advised that a high level of competitive tension was generated throughout the sales process and that three bids were received on the advised bid date for the transaction. NAMA accepted the highest bid which exceeded its minimum reserve price and independent valuations for the portfolio.
85. Deputy Brendan Smith asked the Minister for Finance his plans to have discussions with the banking sector on the provision of additional financial services through An Post, in view of the concerns in rural communities wherein bank branches are closing; and if he will make a statement on the matter. [19081/17]
Amharc ar fhreagraI should stress at the outset that the Irish Government has no formal role in the commercial decisions of the banks as to their future business model and whether or not they will close particular branches. This is a matter for the Board and Management of the bank itself.
That said, I expect that any bank closing branches will do everything that it can to mitigate the impacts of the 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.
In the context of the recently announced closures, I understand that Ulster Bank intends extending its services with An Post to include cash and cheque lodgements for personal and business customers where the bank is closing branches.
86. Deputy Brendan Smith asked the Minister for Finance his plans to improve the conditions and criteria for the primary medical certificate; and if he will make a statement on the matter. [19088/17]
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 million in 2016. This does not include the revenue foregone to the Local Government Fund in 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.
87. Deputy Tom Neville asked the Minister for Finance the policy on taxing income generated from solar panels; and if he will make a statement on the matter. [19112/17]
Amharc ar fhreagraWhere a person is generating electricity from solar panels and sells that electricity into the national grid the income from such activity would, in general, be considered a business activity and accordingly the income would be assessed as trading income chargeable under Case I of Schedule D. In cases where the generation of electricity is primarily for own use, and only surplus electricity is sold on an intermittent basis, the income from the sale of the surplus electricity would be assessed under Case IV of Schedule D.
Where land is leased to persons engaged in the generation of electricity from solar panels the income from such letting is assessed under Case V of Schedule D.
In the case of an individual, the profit to be assessed to tax under Case I, IV or V of Schedule D, as appropriate, is the net income after deduction of allowable expenses. The profit will be assessed to income tax at the individual's marginal rate of tax and, in addition, will be subject to USC and PRSI, as determined by his or her total taxable income in the relevant tax year.
I stated at the Report Stage of Finance Bill 2016 that the taxation issues relating to the use of solar panels required careful consideration as there were several interconnected issues at play surrounding taxation, the environment and a sustainable energy policy. An inter-departmental group is examining these issues and I await their deliberations and recommendations.
88. Deputy Dara Calleary asked the Minister for Finance the amount of funding provided under the capital plan for the information technology infrastructure across his Department; the amount spent to date; the progress to date; and if he will make a statement on the matter. [19287/17]
Amharc ar fhreagraThe Capital Plan includes an amount of €25m for the Finance Vote Group. This comprises an allocation of €2m for the Department of Finance and €23m for the Office of the Revenue Commissioners which is provided to cover both the information technology infrastructure and any project development work provided for within the strategic plans of these organisations for each of the years in question.
Continued investment in information and communications technology (ICT) has been a major driver of productivity growth in Revenue, as well as enabling better service levels for the public. Every year, Revenue needs to develop and implement a series of ICT projects to ensure its ICT can support any budgetary and national or EU legislative changes very frequently within tight timeframes.
The amount spent on information technology infrastructure by the Department of Finance and the Office of the Revenue Commissioners in 2016 and to date in 2017 is set out in the following table:
|
|
2016 |
2017 to date |
|
Department of Finance |
€352,054 |
€10,964 |
|
Office of the Revenue Commissioners |
€15.5m |
€2.6m |
I would like to advise the Deputy that ICT services and IT Infrastructure services for the Department of Finance are provided by the Office of the Government Chief Information Officer (OGCIO) under the Department of Public Expenditure and Reform. On behalf of my Department, the OGCIO implements a multi-layered approach to managing and protecting departmental ICT systems, applications, infrastructures, and services.
89. Deputy Niall Collins asked the Minister for Education and Skills his plans to increase the number of persons enrolled in apprenticeships (details supplied); and if he will make a statement on the matter. [19033/17]
Amharc ar fhreagraAs the Deputy is aware, in order to be registered as an apprentice by SOLAS, a person must be employed by an approved employer in one of the 27 craft trades. Recruitment to apprenticeship is therefore driven by employers rather than by SOLAS or by education and training providers. The 2014 Review of Apprenticeship in Ireland acknowledged that the number of women employed in craft apprenticeships is low as they operate in sectors that have traditionally low levels of female employment. SOLAS offers a bursary to employers to encourage them to employ female apprentices in these areas. Despite this the number of female apprentices remains low.
Currently the Apprenticeship Council is overseeing the expansion of the apprenticeship system into a range of new areas, following a call for proposals from employers and education and training providers. In recent months, we have seen the first of these new apprenticeships with the new Insurance Practitioner Apprenticeship launching in September 2016 and the Industrial Electrical Engineer Apprenticeship commencing in November 2016. 13 further new apprenticeships will get underway in 2017, many of which are in sectors where there is a different gender balance in the workplace and I am confident that this will lead to a strong increase in female participation when these new apprenticeships are launched.
As set out in the recently published Action Plan to Extend Apprenticeship and Traineeship in Ireland 2016-2020, my Department will, in conjunction with SOLAS, review the pathways to participation in apprenticeship in a range of diverse groups, including female participation, in light of the broadening of the apprenticeship system into new areas. The review will be completed in 2018 and any recommendations made will be implemented immediately.
As part of the plan to expand apprenticeship, SOLAS will introduce a new branding and marketing campaign which will, in particular, focus on attracting more women to take up apprenticeships.
90. Deputy Dara Calleary asked the Minister for Education and Skills if funding was provided for in the capital plan to provide an additional 19,000 primary school places; the funding spent to date; the number of places made available under the capital plan; and if he will make a statement on the matter. [18742/17]
Amharc ar fhreagra91. Deputy Dara Calleary asked the Minister for Education and Skills the funding provided for in the capital plan to provide an additional 43,000 post-primary school places; the funding spent to date; the number of places made available under the capital plan; and if he will make a statement on the matter. [18743/17]
Amharc ar fhreagra92. Deputy Dara Calleary asked the Minister for Education and Skills the funding provided for in the capital plan to replace existing prefab accommodation with permanent classrooms; the funding spent to date; the number of prefab classrooms replaced; the number yet to be replaced; and if he will make a statement on the matter. [18744/17]
Amharc ar fhreagra93. Deputy Dara Calleary asked the Minister for Education and Skills the funding provided for in the capital plan for ongoing refurbishment projects across the school system; the funding spent to date; the projects which have been and will be funded by this; and if he will make a statement on the matter. [18745/17]
Amharc ar fhreagra97. Deputy Dara Calleary asked the Minister for Education and Skills the funding provided for in the capital plan for energy efficient schools; the funding spent to date; the number of schools that have and will receive funding respectively under the capital plan; and if he will make a statement on the matter. [18749/17]
Amharc ar fhreagraI propose to take Questions Nos. 90 to 93, inclusive and 97 together.
In September 2015 the Building on Recovery: Infrastructure and Capital Investment 2016-2021 (The Capital Plan) was announced. The Plan provides €3.8 billion in direct Exchequer funding for investment in primary, second and third level education facilities, combining the upgrade and extension of existing educational infrastructure and the provision of new buildings.
The Capital Plan follows on from the Infrastructure and Capital Investment 2012-2016 Medium Term Exchequer Framework. The Deputy will appreciate that several large scale projects and various schemes signalled during the period of the Medium Term Exchequer Framework are on-going and will only be finalised during the early years of the current Plan.
In November 2015 310 large scale school building projects were announced by my Department. With the exception of 14 new schools, the remainder are in respect of large scale extensions and/or refurbishment projects. The combination of new schools and large scale extensions will deliver the additional 62,000 school places (43,000 Post-Primary school places plus 19,000 Primary school places) over the lifetime of the Plan.
The expectation is that the completion of large scale projects on an annual basis over the lifetime of the Plan will be consistent with results from both 2015 and 2016 when 50 large scale projects were completed each year. In 2015 a total of 27 new schools and 23 large scale extensions were completed while in 2016 a total of 30 new schools and 20 large scale extensions were completed. The 2015 completions provided 13,405 additional permanent school places while the 2016 completions provided 15,290 permanent school places. Although this level of provision is expected to reduce in the latter years of the Plan due to a lesser demand at Primary level for large scale projects to deliver additional school places and a greater emphasis on large scale refurbishment projects, the target provision of 62,000 additional school places can still be achieved. It should be noted that the announcement in November 2015 also alluded to the prospect of requiring new schools post 2018, a prospect that is kept under constant review.
Expenditure on Large Scale Projects in 2016 amounted to just over €334m or 63% of the overall capital spend under Subhead D.3 – Building, Equipment and Furnishing of Primary and Post-Primary Schools. When combined with the Additional Accommodation Scheme expenditure reaches almost 80% of the 2016 spend under this subhead. This percentage level of expenditure on Large Scale Projects is projected to continue throughout the lifetime of the Capital Plan.
All new schools and extensions are constructed in accordance with my Department’s design and technical guidance documents. These documents include guidance on best practice in achieving energy efficient schools. All new school buildings must achieve a top A3 band Building Energy Rating (BER). The costs associated with providing such a high level of energy efficiency in new school buildings form part of the building works contract and as such are not calculated in isolation.
Over the lifetime of the Capital Plan it is intended to replace all purchased temporary accommodation with permanent accommodation, where the need is established. To enable this development, my Department will be carrying out an assessment of the number of prefabs being used to deliver the curriculum. This will also determine whether or not individual prefabs need to be replaced in the context of the long-term accommodation needs of each individual school. When completed, this assessment will quantify the number of prefabs to be replaced.
A mid-term review of the capital plan is currently underway with a final report and recommendations to be presented to Government in the third quarter of 2017. My Department provided a detailed submission in early March to the Department of Public Expenditure and Reform reflecting the on-going capital requirements of the education sector.
