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Thursday, 16 Nov 2017

Written Answers Nos. 62-81

Tax Reliefs Eligibility

Ceisteanna (62)

Peter Burke

Ceist:

62. Deputy Peter Burke asked the Minister for Finance further to Parliamentary Question No. 34 of 10 October 2017, if an application for a Revenue Commissioners EII grant by a company (details supplied) in County Longford can be expedited; and if he will make a statement on the matter. [48515/17]

Amharc ar fhreagra

Freagraí scríofa

I understand from Revenue that all applications in relation to the Employment and Investment Incentive (“EII”) are dealt with in date order.

The entitlement to relief under the scheme is determined after a company, which is a small or medium sized company, has issued shares to a qualifying investor. I am advised by Revenue that while they provide what is known as “outline approval” to companies there is no requirement for a company to obtain outline approval prior to issuing shares.  Therefore, the absence of outline approval does not prevent a company raising capital. The conditions for the relief are objective, set out in legislation and subject to detailed Revenue guidance.  If the company meets those objective criteria, it can raise the financing with confidence that relief will be available.

In addition, Revenue has advised me that outline approval is where Revenue is prepared to express the opinion that, based on the information provided, relief under EII is likely to be available for an investment in a company. It is based on the information provided and as such, does not come with any caveats other than reminding companies that actual entitlement to relief cannot be determined until such time as the shares are issued.

The company referred to by the Deputy applied for outline approval on 18 August 2017. I understand that Revenue is currently processing applications received at the start of August. The circumstances outlined in relation to the company are similar to the circumstances that all companies who are looking to raise funding to which EII funding are in. As companies that are looking for outline approval generally express urgency, it would be unfair on those other companies to expedite the application by the named company.

Stamp Duty

Ceisteanna (63)

Michael McGrath

Ceist:

63. Deputy Michael McGrath asked the Minister for Finance if there are stamp duty reliefs on the transfer of business assets within a family; and if he will make a statement on the matter. [48524/17]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the transfer of a business assets within a family constitutes a conveyance on sale for the purposes of the Stamp Duties Consolidation Act (SDCA) 1999. Stamp duty is payable by the transferee.  Where the business asset is sold or otherwise transferred for less than market value, section 30 SDCA 1999 imposes a charge to stamp duty at the market value of the property transferred.

There are no reliefs that may apply in such cases. Family relationships are not relevant for stamp duty purposes, other than in the case of certain transfers of agricultural property between family members, where a measure known a consanguinity relief may apply.

Gender Balance

Ceisteanna (64)

Mary Lou McDonald

Ceist:

64. Deputy Mary Lou McDonald asked the Minister for Finance the gender balance on each of the State boards under his remit, in tabular form. [48564/17]

Amharc ar fhreagra

Freagraí scríofa

I wish to advise the Deputy that in relation to each of the State Boards under the remit of my Department, the gender balance is provided in the following table.

The Deputy may be interested to note that this information can also be accessed on the State Boards website www.stateboards.ie/stateboards/.

State Board

Gender Balance

Central Bank Commission

Female – 3

Male – 7

Credit Union Restructuring Board

Female – 2

Male – 1

Financial Services Ombudsman Council

Female – 4

Male – 3

Irish Fiscal Advisory Council

Female – 2

Male – 3

National Asset Management Agency

Female – 1

Male – 6

[Currently 2 Vacancies]

National Treasury Management Agency

Female – 4

Male – 5

Strategic Banking Corporation of Ireland

Female – 4

Male   – 5

Tax Code

Ceisteanna (65)

Niall Collins

Ceist:

65. Deputy Niall Collins asked the Minister for Finance Ireland’s ranking in comparison to other OECD countries in respect of the capital gains tax rate applied. [48623/17]

Amharc ar fhreagra

Freagraí scríofa

As the capital gains tax codes of OECD member countries vary in numerous respects, member countries’ codes and the respective statutory rates are not directly comparable.  Capital Gains Tax (CGT) rates vary depending on a number of factors, including, for example,  whether the disposer of the asset  is an individual or a company, resident or non-resident; the nature of the asset and the scope of exemptions allowed; the duration of ownership of the asset and whether or not inflation indexation of acquisition costs is allowed. As a result, it is difficult to compare like with like and comparing statutory tax rates provides only an initial indication of how taxation of capital gains compares across countries.

Taking the statutory personal CGT rate applied to long-term gains on shares, which is the rate in respect of which up-to-date information is most readily available, Ireland has the 5th highest rate – 33% – of 20 OECD countries that charge such gains to CGT – the average rate being 28.4%.  It should be noted in this context that Ireland applies a uniform rate of 33% to all chargeable gains, regardless of the duration of ownership, whereas other countries may apply a higher rate to short-term gains or by reference to other factors, which, if taken into account, would result in a different ranking and average rate.

Small and Medium Enterprises Supports

Ceisteanna (66)

Niall Collins

Ceist:

66. Deputy Niall Collins asked the Minister for Finance the reason the criteria laid down under the KEEP scheme mean a company must remain within the SME head-count definition and cannot scale up beyond this level to remain eligible. [48625/17]

Amharc ar fhreagra

Freagraí scríofa

In Budget 2018 I announced the introduction of the new Key Employee Engagement Programme (KEEP) with the objective of supporting SMEs in Ireland in competing with larger enterprises to recruit and retain key employees.  Share options can provide key employees with a financial incentive linked to the success of the company and may improve the attractiveness of an SME employment offer.

The measure is intentionally focussed on SME companies, but the issue to which the Deputy refers, whereby the current legislation may limit the growth potential of a company while KEEP options are on issue, has been brought to my attention and my officials are reviewing the matter.

I indicated at Committee Stage of the Finance Bill that officials were continuing to engage with small business representatives to ensure that the KEEP legislation was operable in practice and that it would be effective in meeting its policy objective. I also indicated that I may bring forward further amendments at Report Stage of the Finance Bill. 

The operation of the KEEP scheme will be subject to compliance with European Union State Aid rules.

Revenue Commissioners Enforcement Activity

Ceisteanna (67)

Michael McGrath

Ceist:

67. Deputy Michael McGrath asked the Minister for Finance the amount collected by the Revenue Commissioners under the compliance initiative announced in budget 2017; the interest and penalties that have been applied, in aggregate form; the number of disclosures that were made in respect of each offshore jurisdiction; the nature of the tax evasion captured by the initiative, in tabular form; and if he will make a statement on the matter. [48644/17]

Amharc ar fhreagra

Freagraí scríofa

It was announced to the House in the Financial Statement for Budget 2017 that action would be taken to restrict, with effect from May 2017, the opportunity for tax defaulters with outstanding tax liabilities in respect of offshore matters to use the voluntary disclosure regime. In line with this undertaking, section 56 of the Finance Act 2016 provides that, as and from the specified deadline date, the making of a voluntary disclosure is no longer permitted where the tax liabilities in question relate to offshore matters. 

The period during which a voluntary disclosure could be made to Revenue in relation to offshore matters ended on 4 May 2017. I am advised by Revenue that some 2,734 disclosures, with a declared value of almost €84 million, were received by that date. This amount is comprised of €53 million in tax, interest of €25 million and €6 million in penalties.

I am advised also that 1,888 (that is, 69 percent) of the disclosures received by Revenue relate to offshore matters concerning four jurisdictions, namely the United Kingdom (1,196), the United States of America (377), France (183) and Spain (132). A full breakdown of the disclosures received, by reference to the jurisdiction to which the offshore matter disclosed related, is given in the following table.

BREAKDOWN BY JURISDICTION TO WHICH OFFSHORE MATTER RELATES

Country

No. of Disclosures

Country

No. of Disclosures

Country

No. of Disclosures

Australia

53

Gibraltar

1

Oman

1

Austria

7

United Kingdom

1,196

Panama

1

Bahamas

4

Greece

1

Poland

26

Barbados

1

Guernsey

5

Portugal

51

Belgium

25

Hungary

43

Romania

4

Belize

1

India

5

Saint Lucia

1

Bermuda

1

Iraq

1

Singapore

2

Brazil

1

Isle of Man

38

Slovakia

3

British Virgin Islands

5

Italy

10

Slovenia

1

Bulgaria

18

Jersey

27

South Africa

30

Cambodia

1

Jamaica

1

Spain

132

Canada

39

Kenya

2

Sri Lanka

1

Cape Verde

1

Lebanon

1

Sweden

5

Cayman Islands

1

Liechtenstein

3

Switzerland

47

China

4

Lithuania

3

Thailand

1

Croatia

1

Luxembourg

30

Trinidad & Tobago

1

Cyprus

9

Malaysia

1

Turkey

18

Czech Republic

4

Malta

2

United Arab Emirates

17

Denmark

1

Mauritius

1

USA

377

Estonia

1

Monaco

1

Unspecified

178

Finland

4

Netherlands

21

 

 

France

183

New Zealand

10

 

 

Germany

64

Norway

5

Total

2,734

The following table gives details, by category, of the types of previously undisclosed income sources and assets that gave rise to the disclosures made to Revenue.

BREAKDOWN BY SOURCE OF INCOME AND ASSETS

Source

Number

Percentage

Pension

428

16%

Bank Account

471

17%

Shares

555

20%

Property

795

29%

Offshore Fund

117

4%

Trust

24

1%

Earned Income

75

3%

Inheritance

24

1%

Multiple

113

4%

Unspecified

132

5%

Total

2,734

 

Anybody who had tax liabilities relating to offshore matters and who did not act by 4 May to address them now faces the prospect of substantially higher penalties, publication in Revenue’s quarterly list of tax defaulters and possible prosecution. Revenue will be making full and effective use of the large volume of data that it is receiving, under international arrangements for the automatic exchange of information, to identify and pursue anybody who attempts to evade his or her tax obligations by using offshore accounts, assets or structures.

Paradise Papers

Ceisteanna (68)

Michael McGrath

Ceist:

68. Deputy Michael McGrath asked the Minister for Finance the work the Revenue Commissioners are carrying out in respect of the information revealed by the leaking of the Paradise Papers; and if he will make a statement on the matter. [48645/17]

Amharc ar fhreagra

Freagraí scríofa

I am informed by Revenue that it is aware of, and actively examining, the information and allegations currently being published by various media outlets that originate from the “Paradise” papers.  If further information and allegations become available from the same source over the coming days, Revenue will likewise examine any such further information or allegations that emerge.

Until all relevant information and allegations have emerged it is not possible for Revenue to formulate and decide its overall response to the information and allegations contained in the Paradise papers.

Revenue is determined that any tax evasion identified in relation to Irish taxpayers will be thoroughly investigated. Where tax evasion is uncovered Revenue will seek to have the maximum sanctions applied up to and including criminal prosecutions.

If instances of aggressive tax avoidance emerge, all such instances will be rigorously investigated and challenged by Revenue. Where anti-avoidance legislation can be applied to recover tax avoided through the use of unacceptable tax avoidance practices and schemes, Revenue will seek to apply such legislation with a view to recovering any Irish tax avoided together with all associated interest and tax avoidance surcharges.  

Revenue’s work in the area of identifying offshore tax evasion has been, and continues to be, a priority. The international environment has changed significantly in the years since Revenue started to investigate offshore bank accounts and other offshore assets. Tax authorities worldwide now cooperate on a much wider and more intensive basis in investigating those who hide their profits or gains offshore than they did in the past.  Initiatives such as FATCA (an Inter-Governmental agreement to share financial account information with the United States), DAC (EU Directives on Administrative Cooperation), and CRS (the OECD’s Common Reporting Standard) are all now helping to ensure that tax administrations have greater access to information in respect of offshore assets and income of their residents.  Revenue will make full use of information received from other jurisdictions under these new initiatives on offshore assets to identify and pursue those who have attempted to use offshore accounts, structures or assets to evade or avoid their tax obligations.

In the context of these new information sharing initiatives now becoming available, the Government introduced specific measures in the Finance Act 2016 to ensure that, as and from May 2017, tax defaulters whose default relates to offshore matters are unable to avail of the benefits of the voluntary disclosure regime. Anyone who did not come forward by 4 May 2017 to regularise his or her tax affairs now faces the prospect of substantially higher penalties, publication in the Quarterly List of Tax Defaulters and possible criminal prosecution.

Revenue will also work in close cooperation with other tax administrations, in the framework of the OECD’s Joint International Taskforce on Shared Intelligence and Cooperation, in addressing issues raised by the papers, and will, as appropriate share information with these other tax administrations under existing legal frameworks.

Tracker Mortgage Examination Data

Ceisteanna (69)

Michael McGrath

Ceist:

69. Deputy Michael McGrath asked the Minister for Finance the number of the 6,000 new cases identified by a bank (details supplied) that were buy-to-let mortgages; the number that were primary dwelling house mortgages; the number that led to mortgage arrears cases; and the number that led to the loss of the home. [48648/17]

Amharc ar fhreagra

Freagraí scríofa

In response to the Deputy’s question, officials in the Department of Finance have received the following response from the bank:

“Bank of Ireland provided an update to the market on this matter on 9 November 2017 in which it set out that an additional c. 6,000 accounts would now be included within the scope of the compensation scheme. The Bank has stated that all impacted customers who continue to have an open mortgage account will be returned to their correct tracker rate as soon as possible, and aims to compensate all these customers, subject to their agreement, as quickly as possible starting before the end of 2017.  Of these additional 6,000 accounts approximately 5,200 relate to Owner Occupier properties with the remainder being Buy to Let. The Bank will provide further updates at it progresses through the programme.

The Bank commenced the compensation process for impacted customers on 10 November. The recent statements made by the bank on the matter are available here:

Press Release - https://www.bankofireland.com/about-bank-of-ireland/press-room/press-releases/item/635/bank-of-ireland-sets-out-path-for-resolution-of-tracker-mortgage-issue/#november

RNS - https://investorrelations.bankofireland.com/press-releases/stock-exchange-announcements/ ”.

IBRC Liquidation

Ceisteanna (70)

Michael McGrath

Ceist:

70. Deputy Michael McGrath asked the Minister for Finance the interest projected to be earned from the bonds issued by the Central Bank to fund the wind down of Anglo Irish Bank in each of the years 2017 to 2021; the impact this will have on Central Bank profits; the impact this will have on Exchequer revenue and the fiscal position of the State; and if he will make a statement on the matter. [48649/17]

Amharc ar fhreagra

Freagraí scríofa

The Deputy might kindly note that the bonds in question were not issued by the Central Bank. In February 2013, the Central Bank of Ireland acquired a range of assets following the liquidation of the Irish Bank Resolution Corporation (IBRC), including Promissory Notes (non-standard instruments) which were exchanged for a portfolio of eight Floating Rate Notes (FRNs) (standard long-dated government bonds with a floating rate coupon, i.e. a regular interest payment which varies with market rates) amounting to €25.034 billion. 

The Central Bank’s remaining holdings of these bonds (the FRNs) totals €16.034 billion and the average coupon, or interest rate, (weighted by holding) is 6-month Euribor +266 basis points. For reference, the 6-month Euribor as at 14 November 2017 is -0.275%.

The 6-month Euribor is reset every 6 months and so is subject to change on those occasions. The last coupons fixed on 15 June for reset on 19 June. 6-month Euribor was -0.271% on 15 June 2017. The coupons will again fix at 6-month Euribor on 14 December for reset on 18 December.

As stated previously, the Central Bank is committed to disposing of the assets acquired as part of the IBRC liquidation as soon as possible, provided financial stability conditions permit.

The Central Bank also indicated a minimum schedule of disposals as follows:

2014-2018 €0.5 billion per annum;

2019-2023 €1 billion per annum; and

from 2024 onwards €2 billion per annum until all bonds are sold.

As at 15 November 2017, the Bank has so far disposed of €9 billion nominal of the Floating Rate Notes:

€0.5 billion in 2014;

€2 billion in 2015;

€3 billion in 2016; and

€3.5 billion so far this year.

The Central Bank met its disposal target in 2014, and has significantly exceeded its disposal targets in 2015, 2016, and already in 2017.

Due to the volatility associated with the disposal of these assets, Budget 2018 contains prudently-based estimates of Central Bank income out to 2021, which factors in interest earned on the FRNs, however, it is not possible to give an exact figure due to the number of unknown variables. Table 10 of the Economic and Fiscal Outlook  illustrates the total impact of the estimates distributed into the component which benefits the general government balance and the remainder which counts positively towards the Exchequer only (available at the following link: http://budget.gov.ie/Budgets/2018/Documents/Budget_2018_Economic_and_Fiscal_Outlook.pdf). Under the EU fiscal rules, expenditure is now sustainably financed and is linked to the trend economic growth rate rather than revenue developments. 

IBRC Liquidation

Ceisteanna (71)

Michael McGrath

Ceist:

71. Deputy Michael McGrath asked the Minister for Finance the interest rate earned on the bonds issued by the Central Bank to fund the wind down of Anglo Irish Bank promissory notes; the interest rate on the new national debt issued to fund the purchase by the NTMA of the promissory notes from the Central Bank; and if he will make a statement on the matter. [48650/17]

Amharc ar fhreagra

Freagraí scríofa

Subsequent to the liquidation of IBRC the Central Bank acquired €25.034bn of Floating Rate Notes (FRNs) and €3.46bn of the fixed rate 5.4% Treasury Bond 2025.

The following table sets out the interest rate on each of these bonds:

 Note Type

 Rate

 Maturity

Original Nominal acquired by CBI (€m)

Floating Rate Note

6 month Euribor+268bps

18/06/53

 5,034

Floating Rate Note

6 month Euribor+267bps

18/06/51

 5,000

Floating Rate Note

6 month Euribor+265bps

18/06/49

 3,000

Floating Rate Note

6 month Euribor+262bps

18/06/47

 3,000

Floating Rate Note

6 month Euribor+260bps

18/06/45

 3,000

Floating Rate Note

6 month Euribor+257bps

18/06/43

 2,000

Floating Rate Note

6 month Euribor+253bps

18/06/41

 2,000

Floating Rate Note

6 month Euribor+250bps

18/06/38

 2,000

Fixed Rate

5.40%

13/03/25

 3,461

The floating rate notes with original maturities of 18/06/2038, 18/06/2041, 18/06/2043 and 18/06/2045 have been fully bought back and cancelled by the NTMA.

It is important to note that there was no specific issuance undertaken to fund the purchase of these notes. Instead, the proceeds of all Exchequer borrowings are lodged to the Exchequer account at the CBI and all moneys within that account are fungible.

The first of the floating rate notes was purchased by the NTMA in December 2014.

The weighted average yield on fixed rate benchmark bond issuance by the NTMA in 2015, 2016 and to date in 2017 are as follows:

2015: 1.51%

2016: 0.82%

2017 year to date: 0.89%

Tax Code

Ceisteanna (72)

Bernard Durkan

Ceist:

72. Deputy Bernard J. Durkan asked the Minister for Finance the correct level of taxation applicable in the case of a person (details supplied); and if he will make a statement on the matter. [48659/17]

Amharc ar fhreagra

Freagraí scríofa

I am advised by Revenue that the details provided in respect of the person concerned differ from Revenue’s  information.

If the person concerned is married, they may be entitled to claim the Married Persons Tax Credit by completing and returning a Form IT2 assessable spouse election form which can be found online at www.revenue.ie or by claiming the credit on MyAccount, the online service for PAYE customers.   

In addition, if the individual is married and their spouse does not work or has income per annum of less than €7,200 (or €5,080 for years up to and including 2015), they may also be due the Home Carer Tax Credit which can also be claimed on MyAccount.

Pension Provisions

Ceisteanna (73)

Louise O'Reilly

Ceist:

73. Deputy Louise O'Reilly asked the Minister for Public Expenditure and Reform if his attention has been drawn to a mechanism for public servants who are members of the single public service pension scheme to access AVCs in the same way as persons on the previous scheme; and if he will make a statement on the matter. [48501/17]

Amharc ar fhreagra

Freagraí scríofa

The Single Public Service Pension Scheme applies to all new entrants appointed to pensionable posts in the public service from 1 January 2013.  Irrespective of the public service pension scheme of which they are a member, and subject to Revenue and any other relevant regulatory constraints, pensionable public servants may be able to augment their retirement income by contributing to a Revenue-approved AVC Scheme or AVC PRSA, entered into at full cost to themselves with an insurance provider.  Participation in AVC Schemes, some of which are affiliated with trade unions, or an AVC PRSA arrangement is a matter for individual public servants.

Pensions Data

Ceisteanna (74)

Louise O'Reilly

Ceist:

74. Deputy Louise O'Reilly asked the Minister for Public Expenditure and Reform the numbers of civil and public servants who are members of the single public service pension scheme, by grade and by employer, in tabular form; and if he will make a statement on the matter. [48502/17]

Amharc ar fhreagra

Freagraí scríofa

The Single Public Service Pension Scheme, which was launched on 1 January 2013, is the default pension scheme for persons commencing employment in the public service, including civil servants, from that date onward.

The Single Scheme is administered at workplace level by each public service body (termed a relevant authority) to which the Scheme applies.

My Department does undertake an annual census of members across all relevant authorities at the end of each year.  The last annual census undertaken was for the year ended 31 December 2016 and this noted some 64,000 persons were enrolled as members of the Single Scheme at that time.  This number includes significant numbers of temporary staff, not all of whom would have remained in post subsequent to 31 December 2016.  My Department does not hold information on the grades of individual members of the Single Scheme.  A breakdown of total membership advised by relevant authorities to my Department at 31 December 2016 has been provided to the Deputy and is outlined in the table at the following link: Pension Scheme

Pension Provisions

Ceisteanna (75)

John Brady

Ceist:

75. Deputy John Brady asked the Minister for Public Expenditure and Reform the way in which the supplementary pension for public servants works; and if he will make a statement on the matter. [48639/17]

Amharc ar fhreagra

Freagraí scríofa

In 1995, as a public service pension reform measure, it was agreed that all future entrants to the public service would pay full PRSI and be eligible for a Contributory State Pension as a part of their overall pension entitlement.

As a consequence, occupational pensions for those recruited between 1995 and 2012 are made up of an occupational pension payment plus Contributory State Pension (where payable) such that the maximum total pension available with full service is half salary at retirement, i.e. the same as pre-1995 recruits. This limit applies whether the pension is integrated with the State pension or not.

Where a post-1995 recruit retires before the State Pension age of 66, their occupational pension is calculated to take account of social welfare benefits payable, so that when those benefits are payable, in full or in part, they are no worse off than a comparative pre-1995 recruit. Where this parity does not arise their occupational pension is modified through a supplementary adjustment, taking account of social welfare benefits payable, so they are no worse off than a comparative pre-1995 recruit. A public service pensioner may only qualify for a supplementary pension if they are not engaged in paid employment, do not qualify for social insurance benefit or fail to qualify for such benefit at less than the maximum rate, and their failure to qualify is due to causes outside their control.

In a further pension reform measure, the Single Public Service Pension Scheme which applies to all new entrants since 1 January, 2013, does not make provision for such supplementary adjustments.

Flood Prevention Measures

Ceisteanna (76)

Tom Neville

Ceist:

76. Deputy Tom Neville asked the Minister for Public Expenditure and Reform if road defence works will be carried out in an area (details supplied); and if he will make a statement on the matter. [48463/17]

Amharc ar fhreagra

Freagraí scríofa

The Office of Public Works (OPW) allocated funding of €100,000 to Kerry County Council under the Minor Flood Mitigation Works & Coastal Protection Scheme in February, 2012 for embankment strengthening works at Cromane Lower. The Council has already drawn down this funding. OPW is not responsible for the upkeep of this embankment. Following the coastal storms, which affected the western seaboard in December 2013 and January 2014, Kerry County Council was allocated €1,243,270 for a programme of repair works, which included funding for a project at Cromane Lower. All funding has been expended.

It is a matter for Kerry County Council in the first instance to investigate and address issues of coastal protection and flooding at the location indicated. If, following assessment, Kerry County Council can identify any economically and environmentally viable measures to address the flooding problem at this location it is open to Kerry County Council to undertake any required remedial works using its own resources. Alternatively, if appropriate, it may apply for further funding to carry out proposed works under the OPW Minor Flood Mitigation Works and Coastal Protection Scheme. Any application received will be assessed under the scheme's eligibility criteria, including a requirement that any measures are cost beneficial, and having regard to the overall availability of funding for flood risk management. Application forms and related guidelines are available on the OPW website under Flood Risk Management. http://www.opw.ie/en/floodriskmanagement/operations/minorfloodworkscoastalprotectionscheme/

Legislative Programme

Ceisteanna (77)

Mary Lou McDonald

Ceist:

77. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the date by which the Public Sector Standards Bill 2015 will be enacted. [48497/17]

Amharc ar fhreagra

Freagraí scríofa

The Public Sector Standards Bill provides for the disclosure of registerable interests by members of the Oireachtas and public servants, and for investigation of possible non-compliance with the legislation. The Bill consolidates the current legislative framework governing the ethical obligations of public officials. It aims to significantly enhance the existing framework for identifying, disclosing and managing conflicts of interest and minimising corruption risks, to achieve a shift towards a more dynamic and risk-based system of compliance and to ensure that the institutional framework for oversight, investigation and enforcement is robust and effective. 

The Bill was published on the 23rd of December 2015 and completed Second stage in the Dáíl on the 20th of January 2016. Committee stage commenced on the 6th of April 2017 and 42 of the 66 sections in the Bill were passed that day.  The Committee requested that, prior to the rescheduling of the Bill for completion of Committee stage, all TD's, Senators and Local Authority representative organisations be written to by the Minister giving information about the Bill.  These letters issued on 10th May. In addition, a briefing session for Oireachtas members was held on 30th May.

In an effort to further assist in the understanding of the Bill, Minister of State O'Donovan is currently meeting with opposition spokespersons on a one-to-one basis.  It is hoped that following these meetings, Committee Stage will be recommenced and the Bill can progress through the Houses of the Oireachtas without further delay.  It is anticipated that the Bill will be enacted in the first half of 2018.

Appointments to State Boards

Ceisteanna (78, 80)

Mary Lou McDonald

Ceist:

78. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the action that is taken by his Department in cases in which a State board fails to meet its gender quota; and if he will make a statement on the matter. [48540/17]

Amharc ar fhreagra

Mary Lou McDonald

Ceist:

80. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform his Department's latest guidelines on appointments to State boards. [48643/17]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 78 and 80 together.

As the Deputy will be aware, the Government overhauled the system for State Board appointments during 2014, building on a number of earlier innovations originally introduced in 2011.

The revised approach has the following three key principles at its core:

- the promotion of wider access to opportunities on State boards;

- the establishment of detailed and comprehensive criteria for those roles; and   

- the introduction of transparent and rigorous assessment of candidates against these criteria.

While it remains the responsibility of the relevant Minister to appoint members of the State boards under his or her auspices, the Public Appointments Service (PAS) now has a significant role under the new arrangements in preparing a sufficient list of suitable candidates so that Ministers are able to exercise effective choice. This provides independent assurance that the appointee is of sufficient calibre and quality to add significant value to the work of the relevant board.

My predecessor as Minister for Public Expenditure and Reform issued Guidelines on Appointments to State Boards in November 2014 setting out clearly how the new appointments process would work in practice.

In terms of the specific objective of increasing the participation of women on State Boards, the Government agreed to set a target of 40% female membership of such boards and that where a board met the 40% target that the aim should be to increase to 45%.

A database maintained by my Department on State Board Appointments (available at www.StateBoards.ie) shows that steady progress is being made on increasing female participation. Some 40% of all board members are now female, although this percentage obviously varies from Board to Board.

Indications are that 48% of State Boards have reached the target of a minimum of 40% female membership set by the Government and indeed that some 35% of boards have met the higher 45% target. This compares very favourably with the private sector, with a figure of somewhere around 13% female participation. The position on individual State Boards is a matter for the relevant Minister.

Up to the end of September this year, over 500 appointments have been made under the new system.  Some 30% of the applications received for state board appointment came from women, who made up some 45% of the appointments made by Ministers.

As I mentioned, each Minister is ultimately responsible for appointments to boards under their aegis and must have regard to the Guidelines. Relevant issues relating to the effective operation of each board, including those such as diversity, gender balance and mix of expertise are for each Minister to consider. Personally I would encourage all Ministers, through their Departments, to encourage measures to increase awareness of State Boards in their sectors with the particular aim of increasing applications from women.

Gender Balance

Ceisteanna (79)

Mary Lou McDonald

Ceist:

79. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the gender balance on each of the State boards under his remit, in tabular form. [48569/17]

Amharc ar fhreagra

Freagraí scríofa

The Public Appointments Service (PAS) is the only State Board under my remit. The gender breakdown of that Board in tabular form is as follows:

Total Membership 

as per Legislation

Vacancies

Current Members

Gender Breakdown

 

 9

 3

 6

 Male 66.7%

 Female 33.3%

Question No. 80 answered with Question No. 78.

Departmental Schemes

Ceisteanna (81)

Tom Neville

Ceist:

81. Deputy Tom Neville asked the Minister for Education and Skills his views on a matter (details supplied); and if he will make a statement on the matter. [48460/17]

Amharc ar fhreagra

Freagraí scríofa

There are no schemes or provisions currently in operation along the lines set out in the details supplied with the Deputy's question.

Supporting school leadership is a major priority of mine, and I am conscious of the importance of developing and motivating school leadership at all levels.  Budget 2017 allowed me to make a start at re-investing in school leadership in terms of Deputy Principal and middle management posts.  Questions of school leadership improvement and development are the subject of ongoing consideration and review by my Department.

Suggestions and proposals to support school leadership improvement and development may be considered in that context.  In considering suggestions which have cost implications, such as for example those set out in the details supplied with the Deputy's question, it is essential to have regard to the most effective use of financial resources, and value for money for taxpayers.

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