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Gnáthamharc

Wednesday, 28 Jun 2017

Written Answers Nos. 82-101

Departmental Reviews

Ceisteanna (82, 83, 84)

Maurice Quinlivan

Ceist:

82. Deputy Maurice Quinlivan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the reason her Department’s web page for making submissions to the consultation on the review of the Succeed in Ireland initiative was not available for a number of weeks; the reason no email address for submissions was included on the web page or in her Department’s draft terms of reference; and the reason submissions have not been published on her Department’s website. [30276/17]

Amharc ar fhreagra

Maurice Quinlivan

Ceist:

83. Deputy Maurice Quinlivan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the number of submissions which were made to the public consultation on the Succeed in Ireland initiative; and when the review of the initiative will be completed. [30277/17]

Amharc ar fhreagra

Maurice Quinlivan

Ceist:

84. Deputy Maurice Quinlivan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the number of jobs secured by an organisation (details supplied) by company; the number of these jobs verified by the IDA to date; the dates these jobs were verified; and the number of jobs not verified. [30278/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 82 to 84, inclusive, together.

I understand from the IDA that a total of 2,831 jobs have been notified to the IDA in approved projects. Of these, 575 have been verified by the IDA with a further 5 awaiting verification. For reasons of commercial confidentiality, I cannot give a company specific breakdown of these jobs. There are no jobs that have not been verified by the IDA at the end of their approval period.

As was announced previously, my Department will soon be commissioning an independent review of the Succeed-in-Ireland programme. That review, which will be carried out after details of the initiative’s full and final costs are available, will equip us with a thorough understanding of the programme’s results and its contribution to employment generation in the State.

Last month, my Department undertook a public consultation seeking views on the draft terms of reference for the review. The webpage setting out information on that public consultation process was easily accessible on the Department's website. It was not offline at any time during the consultation period. Contact details for the Department, including an email address and telephone number, were also available on that same webpage.

I am pleased that the consultation process elicited 17 different submissions. These are being examined by my Department and will help to shape the terms of reference for the review. The submissions will also be published once the terms of reference have been finalised.

Departmental Agencies Data

Ceisteanna (85)

Jack Chambers

Ceist:

85. Deputy Jack Chambers asked the Tánaiste and Minister for Jobs, Enterprise and Innovation if all agencies under her aegis have an up to date tax clearance certificate; the agencies which do not have an up to date tax clearance certificate; the reason they do not have a tax clearance certificate in each case, in tabular form; and if she will make a statement on the matter. [30289/17]

Amharc ar fhreagra

Freagraí scríofa

Section 4.1 of the Department of Finance circular 43/2006, which deals with tax clearance procedures in respect of public sector contracts, provides that contracts awarded and payments between public sectors bodies are excluded from tax clearance procedures.

In light of this, it is not strictly necessary for state agencies to obtain tax clearance certificates. Nevertheless the following agencies under the aegis of my Department have elected to obtain tax clearance certs:

- Irish Auditing and Accounting Supervisory Authority

- Competition and Consumer Protection Commission

- Personal Injuries Assessment Board

- Enterprise Ireland

- National Standards Authority of Ireland

- Health and Safety Authority

- IDA Ireland

Science Foundation Ireland have not elected to obtain a tax clearance cert to date.

Employment Rights

Ceisteanna (86, 87, 88, 89, 90)

Thomas P. Broughan

Ceist:

86. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation if she will report on seafarer pay; the investigations her officials are undertaking on this matter; and if she will make a statement on the matter. [30439/17]

Amharc ar fhreagra

Thomas P. Broughan

Ceist:

87. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation if she will report on a recent circular (details supplied) that seafarers working in the Irish Sea are being paid £3.78 per hour; the investigations her officials are undertaking on this matter; and if she will make a statement on the matter. [30440/17]

Amharc ar fhreagra

Thomas P. Broughan

Ceist:

88. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation if she will report on pay rates paid by key operators on the Irish Sea in which a company (details supplied) is paying seafarers £3.47 per hour; the invigilation of these rates and regulations which is taking place; and if she will make a statement on the matter. [30441/17]

Amharc ar fhreagra

Thomas P. Broughan

Ceist:

89. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation if she will report on pay rates paid by key operators on the Irish Sea in which a company (details supplied) is paying seafarers £5.55 per hour; the invigilation of these rates which is taking place; and if she will make a statement on the matter. [30442/17]

Amharc ar fhreagra

Thomas P. Broughan

Ceist:

90. Deputy Thomas P. Broughan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation if she will report on pay rates paid by key operators on the Irish Sea in which a company (details supplied) is paying seafarers £3.78 per hour; the invigilation of these rates and regulations which is taking place; and if she will make a statement on the matter. [30443/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 86 to 90, inclusive, together.

The Inspection and Enforcement Services of the Workplace Relations Commission (WRC) monitor employment conditions to ensure compliance with and, where necessary, the enforcement of employment rights legislation. This includes redress for the employees concerned and payment of any unpaid wages arising from breaches of employment rights.

The Inspection Services have the power to carry out employment rights compliance inspections in relation to the following legislation:

Organisation of Working Time Act 1997

Payment of Wages Act 1991

Protection of Young Persons (Employment) Act 1996

National Minimum Wage Act 2000

Parental Leave Acts 1998 and 2006

Redundancy Payments Acts 1967–2012

Employment Agency Act 1971

Industrial Relations Acts, 1946 to 2015

Carers Leave Act, 2001

Protection of Employment Act, 1977

Protection of Employees (Employers' Insolvency) Acts, 1984 to 1991

Employment Permits Act 2003 to 2006

Workplace Relations Act, 2015

The WRC will investigate the information provided by the Deputy. However it should be noted that as a general rule the flag state (i.e. the state where the ship is registered) has the exclusive right to exercise legislative and enforcement jurisdiction over its ships on the high seas. If these vessels are not Irish flagged, the enforcement of terms and conditions of employment are then a matter for the flag state in accordance with international maritime law and practice.

Employment Investment Incentive Scheme

Ceisteanna (91)

Alan Farrell

Ceist:

91. Deputy Alan Farrell asked the Minister for Finance the reason the approval process for employment and investment incentive, EII, applications is apparently backlogged by up to four months; if he will provide additional resources to address this matter in view of the fact that this is adversely impacting on businesses pitching to prospective investors and on their fundraising ability; and if he will make a statement on the matter. [30298/17]

Amharc ar fhreagra

Freagraí scríofa

The Employment and Investment Incentive (“EII”) scheme, provided for in Part 16 of the Taxes Consolidation Act 1997, is a tax incentive whereby individuals who invest in certain qualifying companies can qualify for tax relief on the amount invested.

A qualifying company is one which:

- is an unquoted SME, meaning it has less than 250 employees and has an annual turnover of up to €50 million or an annual balance sheet total of up to €43 million,

- when its first EII investment is raised, the company (including any companies under the control of the same people) has been trading for less than 7 years or, if the company has been trading for more than 7 years, the EII investment is required to develop a new product, or enter a new market, and the amount of the EII investment required is greater than 50% of the company’s average annual turnover for the preceding  5 years,

- any second or subsequent follow-on EII investments must be foreseen in the business plan the company used to raise its first EII investment.

I am advised by Revenue that they are experiencing some backlog in processing requests for approval under this scheme.  There has been an increase in the volume of correspondence on the scheme partially due to an increase in the number of companies applying for certification but also in relation to the increased complexity brought to the scheme by the changes made in Finance Act 2015.  The Finance Act 2015 changes were necessary to bring the scheme into line with conditions specified in the General Block Exemption Regulation (Commission Regulation (EU) No. 651/2014 of 17 June 2014). The introduction of the 7 year age limit is one such condition, as is the requirement that the possibility of follow-on investment was foreseen in the company’s original business plan.

Revenue further advise me that, as a facility to companies that are considering raising investments under the incentive and as an administrative measure, they provide what is known as “outline approval” to companies in advance of the shares issuing. This is where Revenue is prepared to express the opinion that a company would be regarded as a qualifying company once the conditions of qualification are met.  There is no requirement for a company to obtain outline approval prior to issuing shares however, and the actual entitlement to the relief can only be determined after a company has raised its capital and issued shares. Therefore, until the company has actually issued shares to investors it is not possible for Revenue to determine whether or not relief under the EII scheme is due.

 The current backlog on processing applications for EII outline approvals is 3 months, while the backlog on actual EII claims is about 2 months.  I am informed by Revenue that procedures have been put in place to reduce these backlogs.

Insurance Industry Regulation

Ceisteanna (92)

Pearse Doherty

Ceist:

92. Deputy Pearse Doherty asked the Minister for Finance if he will amend the insurance compensation fund legislation to allow the claimants at a company (details supplied) that are likely to be compensated soon; and if he will make a statement on the matter. [30254/17]

Amharc ar fhreagra

Freagraí scríofa

It is my understanding, after seeking clarification, that the Deputy wishes to know if there is an intention to amend the Insurance Compensation Framework legislation (Insurance Act, 1964) to allow the claimants of Setanta to be compensated for 100% of the amounts due to them.

At the outset you should note that my Department has been advised by the Liquidator that as of 20 June 2017, the number of open claims was 1,578. 

The Office of the Accountant of the Courts of Justice and the State Claims Agency are currently working with the Liquidator to progress the making of payments subject to the limits of 65% or €825,000 whichever is the lesser. There are currently 324 claims ready for settlement and I understand that these have been validated by the State Claims Agency.  The process for bringing these claims to the High Court for approval has commenced but a date has yet to be agreed.

In relation to the 35% gap, it is expected that a proportion of the balance of claims will be met from the proceeds of the distribution of Setanta’s assets on completion of the liquidation process.  However, it is not possible to say definitively at this stage what proportion of the claims this will amount to, but current indications are that this is unlikely to be sufficient to cover the full amount.

In this regard, in 2014, a preliminary assessment was carried out by Towers Watson who indicated that the Liquidator would not be in a position to meet more than 30% of claims out of the assets of the liquidation.  The Liquidator has informed the Department that as the Supreme Court has now made its judgment, it will be necessary for a new report to be commissioned to provide updated figures.

Finally, the Deputy should note that the forthcoming legislation based on the recommendations of the Review of the Framework for Motor Insurance Compensation in Ireland will amend the relevant Insurance Acts to ensure 100% of third party motor claims will be covered in any future motor insurance insolvencies. However, it  does not provide for 100% compensation for Setanta policyholders.

Departmental Agencies Data

Ceisteanna (93)

Jack Chambers

Ceist:

93. Deputy Jack Chambers asked the Minister for Finance if all agencies under his aegis have an up to date tax clearance certificate; the agencies which do not have an up to date tax clearance certificate; the reason they do not have a tax clearance certificate in each case, in tabular form; and if he will make a statement on the matter. [30286/17]

Amharc ar fhreagra

Freagraí scríofa

In response to the Deputy's question, I am advised that of the eighteen bodies under the aegis of my Department, ten have an up to date tax clearance certificate.  These bodies are the Office of the Comptroller & Auditor General, Central Bank, Financial Services Ombudsman Bureau, Irish Bank Resolution Corporation, Irish Fiscal Advisory Council, National Asset Management Agency, National Treasury Management Agency, Office of the Revenue Commissioners, Social Finance Foundation and the Strategic Banking Corporation of Ireland. 

Details of the remaining eight bodies are set out in the following table.

 Agency/Body

 

Credit Review Office

The   Credit Review Office does not have a Tax Clearance Certificate because it does not invoice any public sector bodies/receive any public sector funding.

Credit Union Advisory Committee

CUAC  consists of a committee of 3.  It does   not have a Tax Clearance Certificate as funding is allocated from Vote 7 (Department  of Finance) from which annual fees and expenses of the Committee are  paid.  

Credit Union Restructuring Board (ReBo)

REBO  is not liable for taxation, therefore it does not have a Tax Clearance Certificate.

Disabled Drivers Medical Board of Appeal

The DDMBA does not have a tax number. It is   an appeal board whose members are appointed by the Minister for Finance. It   is facilitated by the National   Rehabilitation Hospital (NRH) and paid for out of the Finance Vote .

The NRH has an up to date Tax Clearance Certificate which covers the DDMBA.

Financial Services Ombudsman Council

A   Tax Clearance Certificate is not required as the Financial Services Ombudsman  Bureau deals with payments on behalf of the Financial Services Ombudsman Council.

Investor Compensation Company Limited

The ICCL has no requirement for a Tax Clearance  Certificate at present.  It is   satisfied that all its tax affairs are in order with appropriate returns and   payments made up to date.

Irish Financial Services Appeals Tribunal

IFSAT does not have a Tax Clearance Certificate. The Tribunal does not have any transactions that fall under the PAYE or VAT regime. It does not employ staff and it has no sales.

Tax Appeals Commission

The Commission is centrally funded by the Exchequer through Vote 10. As such, the Commission has no requirement or need for a Tax Clearance Certificate

Disabled Drivers and Passengers Scheme

Ceisteanna (94)

Charlie McConalogue

Ceist:

94. Deputy Charlie McConalogue asked the Minister for Finance his plans to carry out a full review of the disabled drivers and passengers scheme in view of the restrictive criteria of the scheme which in some cases bar persons with debilitating conditions such as MS, spina bifida and so on from availing of the scheme; and if he will make a statement on the matter. [30345/17]

Amharc ar fhreagra

Freagraí scríofa

The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme provides relief from VAT and Vehicle Registration Tax (up to a certain limit), an exemption from motor tax and a grant in respect of fuel, on the purchase of an adapted car for transport of a person with specific severe and permanent physical disabilities.  

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 Scheme and qualifying criteria were designed specifically for those with severe physical disabilities and are, therefore, necessarily precise. 

The Scheme represents a significant tax expenditure. Between the Vehicle Registration Tax and VAT foregone, and the fuel grant, the scheme cost approximately €65m in 2016. This figure 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. 

The disability criteria for the tax concessions available under the scheme have changed over time. When the scheme was first introduced in 1968, the legislation only allowed for one medical ground. In 1989, four new medical grounds were added and in 1994, one new medical ground was added.

I recognize the important role that the Scheme plays in expanding the mobility of citizens with disabilities. The relief has been maintained at current levels throughout the crisis despite the requirement for significant fiscal consolidation.  From time to time representations are received 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.

Insurance Coverage

Ceisteanna (95)

Dara Calleary

Ceist:

95. Deputy Dara Calleary asked the Minister for Finance the reason there is a limit cover on bicycle insurance if the bicycle was bought abroad. [30349/17]

Amharc ar fhreagra

Freagraí scríofa

I am not in a position to outline the specific reasons why companies may require such a limit on bicycle insurance.  As 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.

It should be noted that insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply.  They do not all use the same combination of rating factors, and as a result prices vary across the market and consumers are accordingly free to choose whatever product best meets their needs with price obviously being a relevant factor.  

Finally, the other factor which is relevant to this matter is that insurance company’s price in accordance with their own past claims experience, and this may be another reason why there is a limit on cover for bicycle insurance.

Mortgage Schemes

Ceisteanna (96)

Michael McGrath

Ceist:

96. Deputy Michael McGrath asked the Minister for Finance the number of life loans in respect of residential properties in issuance here; the amount owed on these loans; if such loans are still being marketed by banks; if he is satisfied that the attention of the general public is being fully drawn to the risk associated with a life loan; and if he will make a statement on the matter. [30368/17]

Amharc ar fhreagra

Freagraí scríofa

The Central Bank has advised that, as part of its ongoing supervisory work, the Bank carried out some work in respect of ‘Lifetime’ loans in 2016. Based on information from lenders (which represented the majority of the market at a point in time in 2016), the Central Bank indicated that there were loans of approximately €640 million to approximately 5,000 customers outstanding.

If a regulated entity wishes to engage in the provision of lifetime mortgages, the Central Bank requires that transparency is provided to the borrower at the outset and borrowers must be treated in accordance with the Central Bank’s Consumer Protection Code 2012 (the Code). The Code provides that regulated entities must, where relevant, set out specified warnings regarding lifetime mortgages on its website, application forms or any other document provided to a consumer.  The Code also requires that, prior to offering, recommending, arranging or providing a lifetime mortgage to a consumer, a regulated entity must inform the consumer of the consequences of purchasing a lifetime mortgage and provide information on;

- the circumstances in which the loan will have to be repaid

- details of the interest rate that will be charged

- an explanation of the impact of the rolling up of the interest over the duration of the loan

- an indication of the amount required to repay the loan at maturity

- the effect on the existing mortgage, if any; and

- an indication of the likely early redemption costs which would be incurred if the loan was redeemed on the third and fifth anniversary of the loan and at five yearly intervals thereafter.

The Code also provides that a regulated entity must ensure that the consumer is made aware of the importance of seeking independent legal advice regarding the proposed transaction.

After the provision of the lifetime mortgage, the Consumer Protection Code 2012 also requires regulated entities to, at least annually, provide a statement of account to the consumer borrower which includes information on the opening balance, all transactions, all interest charged, all charges, the outstanding balance and details of the interest rate(s) applied to the account during the period covered by the statement.

Central Bank of Ireland Investigations

Ceisteanna (97)

Pearse Doherty

Ceist:

97. Deputy Pearse Doherty asked the Minister for Finance the action the Central Bank has taken after it asserted in correspondence to him that it had received false and misleading information in the context of its investigation into the motor insurance sector; and if he will make a statement on the matter. [30391/17]

Amharc ar fhreagra

Freagraí scríofa

My understanding is that the Deputy is referring to correspondence, dated 18 August 2015, from the then Governor of the Central Bank of Ireland, Patrick Honohan, to the then Minister for Finance, Michael Noonan TD, following a request under Section 6A of the Central Bank Act 1942. 

I sought the views of the Central Bank on this matter and they have advised me that as part of the implementation of Solvency II, a condition of authorisation relating to this matter  was applied to all firms. This condition states “The Firm shall not in any circumstances provide the Central Bank of Ireland with: (a) false or misleading statements concerning the operation of the Firm, or (b) information which it knows or ought reasonably to know to be false or misleading.” This condition is effective from 1 January 2016, the date of Solvency II coming into force. This condition is also applied to any new firms upon authorization.

The Central Bank has also indicated to me that it is limited by confidentiality  provisions from discussing individual regulated firms or its investigations.

Ministerial Staff

Ceisteanna (98)

Niall Collins

Ceist:

98. Deputy Niall Collins asked the Minister for Finance the supports afforded to the previous holder of his office; the cost of these supports per annum; the period of time for which these supports will be given; and if he will make a statement on the matter. [30460/17]

Amharc ar fhreagra

Freagraí scríofa

I wish to inform the Deputy that under the current Department of Public Expenditure & Reform guidelines on Ministerial Appointments my predecessor was entitled to the following supports:

Permitted under DPER guidelines

Number of staff assigned to the Minister

Special Advisors – 2

Civilian Drivers – 2

Parliamentary Assistant – 1

Personal Secretary – 1

Ministers Private Office – 8

Ministers Constituency Office - 4

Total - 18 

2

2

1

0

8

2

Total - 15 

The total annual salary cost amounted to approx. €698,000.

The former Minister was also provided with IT support which ceased when he left Office.

All of these supports remained in place for the duration of Minister Noonan's period in Office as Minister for Finance.

National Monuments

Ceisteanna (99)

Bernard Durkan

Ceist:

99. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he is satisfied that adequate facilities exist regarding transport to and parking thereat in respect of various historical sites, locations and buildings throughout the country with a view to ensuring the maximisation of visits by tourists from home and abroad; and if he will make a statement on the matter. [30493/17]

Amharc ar fhreagra

Freagraí scríofa

The Office of Public Works is responsible for the maintenance and management of over 800 National Monuments and Heritage properties in State care. Many of these locations are of considerable interest as tourism destinations and attract significant volumes of both domestic and foreign visitors annually. The provision of adequate car and coach parking facilities, and indeed visitor-facing infrastructure generally, to serve this tourism demand is therefore a priority at many locations.

Notwithstanding the need to provide these facilities for visitors, it is also clear that the provision in particular of carparking has to be treated with considerable caution having regard to the aesthetic and landscape sensitivity of historic sites, the potential presence in many cases of underground archaeology and the general risks to fabric involved in bringing large volumes of visitors into close proximity with sometimes fragile buildings. In certain cases, the provision of carparking within large formally designed historic landscapes can be at odds with the sensitive management of such locations and can only be located where they do not create an adverse visual impact. Equally, at certain small rural sites where visitor numbers are not significant, the correct approach will be that no adjacent parking, or at most a single layby, is the appropriate response.

No two sites are the same and each one poses unique challenges. Accordingly OPW approaches any proposals to provide new or extended carpark facilities with some caution having regard to the impact these developments bring, the needs of heritage protection and a sustainable approach. There are however clearly a number of instances where improved facilities are desirable and the OPW is in the process of addressing a number of these cases both with its own resources and as part of the partnership currently underway with Fáílte Ireland to address capital works development issues.

Departmental Agencies Data

Ceisteanna (100)

Jack Chambers

Ceist:

100. Deputy Jack Chambers asked the Minister for Public Expenditure and Reform if all agencies under his aegis have an up to date tax clearance certificate; the agencies which do not have an up to date tax clearance certificate; the reason they do not have a tax clearance certificate in each case, in tabular form; and if he will make a statement on the matter. [30291/17]

Amharc ar fhreagra

Freagraí scríofa

In response to the Deputy’s question, the Public Appointments Service, the Office of Public Works, the State Laboratory, the Office of the Ombudsman and the Regulator of the National Lottery are all tax compliant.  PAS and OPW have up to date tax clearance certificates.  The State Laboratory supply their customers with their tax numbers and access codes and the customer uses this information to check tax compliance on the Revenue website as required in real time. 

The Special EU Programmes Body is one of the North South bodies established under the Good Friday Agreement, and therefore comes under the jurisdiction of the North South Ministerial Council (NSMC) and is subject to a Financial Memorandum agreed by the NSMC. Assurances on financial probity are provided by the Comptrollers and Auditors General in both jurisdictions as part of their joint audit on the annual report and accounts of these North/South Bodies.

The Institute of Public Administration and the Economic and Social Research Institute are not State bodies.  However, as they receive funds from my Department, some aspects of the Code of Practice for the Governance of State Bodies apply to them. Both organisations are tax complaint and have current tax clearance certificates.

Public Procurement Contracts Data

Ceisteanna (101)

Jackie Cahill

Ceist:

101. Deputy Jackie Cahill asked the Minister for Public Expenditure and Reform the details of tenders publicly advertised in County Tipperary in each of the years 2012 to 2016 and to date in 2017 by the Office of Government Procurement or on etendering.ted.europa.eu, which contained a call for suppliers (details supplied); the successful winners of such contracts; the number of SMEs that won such contracts; the number of micro size businesses that won such contracts; the steps being taken to ensure SMEs can access a greater share of publicly advertised tenders by the Government; and if he will make a statement on the matter. [30370/17]

Amharc ar fhreagra

Freagraí scríofa

The management of the tendering process and the administration of the contract once awarded is a matter for each contracting authority. Public contract details, therefore, are held by the individual contracting authority concerned.

This public procurement process is facilitated through the national eProcurement portal www.etenders.gov.ie which is managed by the Office of Government Procurement (OGP).

The information requested by the Deputy will not be available within the time allowed. An analysis of the tender notices published on eTenders is required in order to identify the procurement categories and locations requested.  The information will issue directly to the Deputy.

In relation to the steps being taken to ensure SMEs can access a greater share of publicly advertised tenders by the government. Public Procurement is governed by EU and National rules. The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers the best value for money.  It would be a breach of the EU rules for a public body to favour particular candidates on grounds such as organisation size, locality, nationality etc., and there are legal remedies which may be used against any public body infringing these rules.  

However, there is a recognition at EU Level of the need to promote and facilitate SME participation in public procurement. The new EU Directives on Procurement, transposed into Irish law in May 2016, are intended to make it easier for businesses and SMEs to tender for public sector procurement contracts.  Measures specifically designed to improve access for SMEs and start-ups include:

- financial capacity criterion is generally limited to twice contract value - there are no centrally imposed requirements for a minimum turnover. Establishing the appropriate suitability criteria that are relevant and appropriate to a particular contract is, of course, a matter for the contracting authority  concerned. This is because the contracting authority is in the best  position to gauge the appropriate levels of financial capacity that are appropriate to the needs of that specific contract.

- discretion to divide public contracts  into lots, with the proviso that opting not to divide a contract into lots must be explained in the procurement documents or the report on the procurement process.

- electronic methods of communication are mandated in parts of the tender process.

- the introduction of the European Single Procurement Document (ESPD), a self-declaration form aimed at reducing red tape for suppliers

- provision for “consortia bidding” may assist SMEs to participate in procurement procedures where they would not have the relevant capability or scale if they were to bid as sole tenderers

- explicit provision for pre-market discussion with suppliers and independent experts, subject  to  safeguards against distorting competition or violating transparency and non-discrimination principles

- reductions in the time limits for receipt of tenders by approximately 30% compared to the position under the 2006 Regulations

- Member States are required to report back to the Commission every 3 years on SME participation in public procurement

A number of these measures had been accelerated into policy in 2014 in advance of the transposition of the new Directives by Circular 10/14 - Initiatives to assist SMEs in Public Procurement - issued by the OGP. 

The reform of public procurement across the public service is on-going and will continue to provide opportunities to the SME sector to win business.  The OGP works with industry to ensure that winning government business is done in a fair, transparent and accessible way and to ensure that government procurement policies are business friendly.  It does this by facilitating quarterly meetings of an SME Advisory Group, which have been chaired by the Minister of State with responsibility for public procurement, so that the voice of Irish SMEs (including ISME, IBEC, SFA, Chambers Ireland, and CIF) can be heard by Government.  SMEs are also encouraged to register with the Government's eTenders portal so that they can be notified of upcoming tendering opportunities.

The OGP works with the SME industry representative bodies as well as the Department of  Enterprise and Innovation, InterTrade Ireland and Enterprise Ireland to promote the engagement of SMEs in public procurement.  Evidence of the work and co-operation in the area can be seen in events such as "Go-2-Tender" workshops and "Meet the Buyer" events.

The data analysed by the OGP and published last September (2014 Public Service Spend and Tendering Analysis Report) indicates that 95% of the State's expenditure is with firms within the State and the majority of spend analysed is with SMEs.

The OGP will continue to proactively engage with business and strive to enhance the significant measures already in place to support SME access to public procurement opportunities.

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