Thursday, 18 Jan 2018

Written Answers Nos. 57-70

General Government Debt

Ceisteanna (57)

Michael McGrath

Ceist:

57. Deputy Michael McGrath asked the Minister for Finance the reason for the projected increase in general Government gross debt from €202.6 billion in 2017 to €208.2 billion in 2018, to €211.5 billion in 2019, to €208.2 billion in 2020 and to €209 billion in 2021; the reason for the projected increases; if they are coming from projected rises in interest rates; if they are coming from Exchequer requirements; his plans to reduce the debt; and if he will make a statement on the matter. [2485/18]

Freagraí scríofa

Minister for Finance

Table A5 of the Economic and Fiscal Outlook, published as part of the Budget 2018 documentation, sets out the forecast nominal movements to the stock of general government gross debt.

The debt is forecast to increase out to end-2019 before declining in 2020. As can be seen from this table the primary drivers behind the increase are the ‘Exchequer borrowing requirement’ and ‘Change in Exchequer deposits’.

The Exchequer borrowing requirement forecasts reflect, inter alia, increased capital investment and contributions to the Rainy Day Fund but prudently exclude any assumptions around the State’s disposal of shareholding in a number of financial institutions, which represents an upside risk to these projections. 

The debt estimates reflect pre-funding ahead of large bond maturities in 2019 and 2020. This is reflected as an increase in Exchequer deposits in 2018 and, to a lesser extent, in 2019. This increase is temporary and unwinds in 2020.

Both general government gross debt and net debt, expressed in per cent of both GDP and modified GNI (or GNI*), are expected to continue to continue declining over the forecast period. This is consistent with the fiscal forecasts that show a continued decline in the Exchequer borrowing requirement and a general government surplus in 2020 that is expected to increase in 2021.

Table A4 shows the interest expenditure expressed in cash terms, per cent of tax revenue and per cent of GDP. As can be seen from this table, both the national debt cash interest and interest on an ESA 2010 basis (i.e. GG interest) are declining. The difference between the two measures, largely accounted for by accrual and consolidation adjustments is also shown in this table.

The average interest rate, shown in table 15, is 2.9 per cent in 2017. It is forecast to decline to 2.4 per cent by 2021.

Departmental Expenditure

Ceisteanna (58)

Dara Calleary

Ceist:

58. Deputy Dara Calleary asked the Minister for Finance the reason for the €6 million in capital underspend in his Department as outlined in the fiscal monitor for December 2017. [2493/18]

Freagraí scríofa

Minister for Finance

The underspend the Deputy is asking about refers to the Finance Vote Group. There are 4 Votes in the Finance Group: The Department of Finance, the Office of the Revenue Commissioners, the office of the Comptroller and Auditor General, and the Tax Appeals Commission.

A sum of €25m (rounded to the nearest million) is profiled as Capital for the Finance Vote Group in the December 2017 fiscal monitor.  Allocations were made under two Votes; €23m to the Office of the Revenue Commissioners and €2.3m to the Department of Finance net of any capital carryover from 2016. The €19m outturn included in the fiscal monitor relates to Revenue’s expenditure. Of the €6m variance, €4m applies to Revenue and the €2m to the Department of Finance. The reasons for the variances are set out below:

Vote 9 - Revenue Commissioners: 

Total expenditure by Revenue on Information and Communications Technology (ICT), Capital and Current, amounts to €54.2m or 46.4% of Revenue’s total non-pay costs in 2017. Continued investment in ICT has been a major driver of productivity growth in Revenue, as well as enabling better service levels for the public and enhanced governance.  Every year Revenue needs to develop and implement a series of urgent ICT projects that ensure Revenue’s ICT infrastructure can support budgetary and legislative changes as introduced by the Government or the EU, very frequently within tight timeframes.

The information in the fiscal monitor is based on data available as at 18 December 2017. Revenue’s Capital expenditure largely relates to expenditure on ICT. A considerable lead-in time for final classification between Capital and Current ICT expenditure is required; as such issues as the timing of the roll-out and operationalisation of ICT products are factored into the classification process. Following a number of end year adjustments and re-classifications, Revenue’s Capital expenditure amount was subsequently increased from €19m to €20.3m. This has reduced Revenue’s variance to €2.7m. Some €2m of this amount was spent in 2017, but was classified as Current expenditure. However, in line with standard practice relating to the timing of final classifications between Capital and Current expenditure on ICT projects, it is anticipated that further re-classifications from Current to Capital expenditure will be completed by end Quarter 1, 2018.

Revenue’s total administrative budget expenditure in 2017 amounted to €408.7m, or 99.8% of Revenue’s administrative budget allocation. 

Vote 7 – Department of Finance

Regarding the underspend in the Department of Finance vote, a capital allocation of €2.3m was made, €0.7m for IT related capital spend, and €1.6m for Facilities related capital spend.

Funds originally allocated for fitting out a premises the Department was going to locate some staff in specifically to provide new ICT hardware, however as the Department will not now be re-locating staff to those offices these funds were not spent.

There was an underspend on the capital allocation made for eDiscovery as the project concerned started later than anticipated.

There was an underspend on the capital allocation made for the Print room as some items were not considered essential given the functionality of machines actually procured. In addition, the actual cost of the machines procured came in below the capital allocation made.

In total there was an underspend compared to budget of €0.6m on IT related capital spend.

A Capital allocation for 2017 of approximately €1.6m was made to the Facilities Management Unit. Spending in 2017 amounted to €0.2m resulting in an underspend of €1.4m.

The underspend in relation to the Facilities Management Unit of the Department is due mainly to the fact that progress on projects planned for 2017 was slower than expected.

Three projects in particular accounted for bulk of the underspend broken down as follows:

An enhancement of physical security arrangements in South Block Government Buildings, which was estimated to cost in region of €0.3m, and originally planned for Q3, 2017 will not be completed until 2018.

The relocation of circa 120 staff from the Departments of Finance and Public Expenditure and Reform to new accommodation in Miesian Plaza, Lower Baggot Street, Dublin 2 did not take place as expected in Q4, 2017 due to delays in preparing the accommodation for occupancy.  An amount of €0.4m in respect of outfitting of the new accommodation had been included in the 2017 estimate.

Activity aimed primarily at addressing heating and ventilation issues at 7-9 Merrion Row, Dublin 2 did not advance at the rate originally expected in 2017.  An amount of €0.6m had been allocated towards the planned works in the 2017 estimate.

In addition to the foregoing, delays in a number of smaller projects originally planned for commencement in the latter end of 2017, e.g. enhancement works to off-site document storage facilities, meant that the related spending did not materialise in 2017.

Code of Conduct on Mortgage Arrears

Ceisteanna (59)

Michael McGrath

Ceist:

59. Deputy Michael McGrath asked the Minister for Finance if he is satisfied with the manner in which financial institutions deal with customers in situations in which a couple have separated and both their names remain on the mortgage account;; and if he will make a statement on the matter. [2632/18]

Freagraí scríofa

Minister for Finance

The terms of a credit agreement will generally set out the rights and obligations of the borrower and lender parties to the contract, including the liability of the borrower for the repayment of the loan. In that context, the Central Bank has advised that, in general, both parties to a joint mortgage are jointly and severally liable for the debt.

However, in respect of separated borrowers in or facing mortgage arrears on their primary residence, the Central Bank's Code of Conduct on Mortgage Arrears (CCMA) will apply. The CCMA provides that in the case of joint borrowers who notify the lender in writing that they have separated or divorced, the lender should treat each borrower as a single borrower under this Code (except to the extent that an action requires, as a matter of law, the agreement of both borrowers).

Tracker Mortgage Examination

Ceisteanna (60)

Michael McGrath

Ceist:

60. Deputy Michael McGrath asked the Minister for Finance if persons that lost their tracker mortgage rate as a result of an agreed restructuring of their mortgage which involved a term extension are included in the scope of the tracker mortgage examination; and if he will make a statement on the matter. [2643/18]

Freagraí scríofa

Minister for Finance

The Central Bank has advised that the scope of the Tracker Mortgage Examination covers all lenders which sold tracker mortgage accounts, including both for the family home and investment properties, up to the end of 2015:

- that originated on tracker interest rates;

- that had tracker interest rates applied at any stage during the term of the underlying mortgage agreements; and/or

- where the underlying mortgage agreements provided for contractual rights to or options for tracker interest rates at any stage during the term of the agreements.

Therefore all tracker mortgage accounts including restructured mortgages are included within scope.

Tax Credits

Ceisteanna (61)

Niall Collins

Ceist:

61. Deputy Niall Collins asked the Minister for Finance the estimated cost to the Exchequer of a tax credit proposal over a calendar year (details supplied). [2748/18]

Freagraí scríofa

Minister for Finance

I am advised by Revenue that there are no data available within its systems on the number of employers who employ an apprentice, the salary levels of the apprentices in their employ, the employer’s ability to absorb the credit proposed, or the behavioural changes which may occur if the credit was introduced.

It is not possible, therefore, to estimate the cost to the exchequer of providing a credit as outlined by the Deputy.

Drainage Schemes Status

Ceisteanna (62)

Peter Burke

Ceist:

62. Deputy Peter Burke asked the Minister for Public Expenditure and Reform if a river (details supplied) will be cleared. [2399/18]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Office of Public Works (OPW) carries out a programme of Arterial Drainage Maintenance to a total of 11,500 km of river channel and approximately 730 km of embankments nationally. These maintenance works relate to arterial drainage schemes completed by the OPW under the Arterial Drainage Acts 1945 and 1995. The OPW has a statutory duty to maintain the completed schemes in proper repair and effective condition. The annual maintenance programme typically involves some clearance of vegetation and removal of silt build-up on an average five-yearly cycle. Each year, work is carried out to approximately 2,000 km of channel and about 200 structures around the country. Maintenance of all drainage schemes carried out under earlier Acts, known as Drainage Districts, is the responsibility of the relevant Local Authority.

The OPW is responsible for the maintenance of the Brosna Drainage Scheme, which includes the channel that flows through Kilbrennan. Maintenance of this channel is scheduled for early 2018. The blockage will be investigated and action taken as appropriate.

State Properties Data

Ceisteanna (63)

Barry Cowen

Ceist:

63. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the number of State owned properties that are estimated to be eligible for the vacant site levy; the estimated liability to be paid in 2019; and if he will make a statement on the matter. [2418/18]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

I have been advised by my officials that the Office of Public Works has been notified by two Local Authorities that three sites have been placed on a vacant sites register.

Two sites identified by Dublin City Council at St. John’s Road/Military Road, which are in effect one site. Dublin City Council has estimated the levy liability at €517,500. This case is currently under appeal to An Bord Pleanála. The site is the location for the proposed new Garda Security and Crime Operations Centre and is subject to an ongoing planning process.

Kilkenny County Council has placed the former Garda station at Castlecomer, Co.Kilkenny on their vacant site register. As the Council has not placed a value on the site to date, the calculation of the levy is not available at this time.

State Properties Data

Ceisteanna (64)

Dara Calleary

Ceist:

64. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the number of State owned properties that are unoccupied; the costs associated with the maintenance and security of same; the number of properties rented by the State from private landlords; the cost to the State of same, in tabular form; and if he will make a statement on the matter. [2419/18]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Commissioners of Public Works, on behalf of the State, manage a large and diverse property portfolio, which ranges from office accommodation to heritage properties, visitors centres, Garda stations, among others. As is typical of such large portfolios, there will always be a number of properties, at any given time, that are vacant. These are currently being retained because of their future strategic development value.

The majority of the properties currently vacant are those Garda stations closed under the 2012/2013 policing plans of An Garda Siochana. The remainder consists of properties such as customs posts, former coastguard stations and sundry other properties located throughout the country.

The information requested on unoccupied State properties in the ownership/management of the Commissioners of Public Works is as follows;

No of Unoccupied State owned properties	Security Costs (2017)	Maintenance Costs (2017)
98	€229,949.24	€661,544.29

The information requested on the number and cost of unoccupied rented properties is as follows;

No of Unoccupied rented properties	Annual rent
1	€32,505.29

Flood Relief Schemes Data

Ceisteanna (65)

Dara Calleary

Ceist:

65. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the number of flood defence projects that were initiated in 2017; the money spent on each project; the projected amount to be spent on each project; the projected timeframe for the completion of each project; the projects that have been delayed; the reason therefor; and if he will make a statement on the matter. [2488/18]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Office of Public Works (OPW) has an existing capital programme of major flood relief schemes which includes eight schemes currently at construction, eight further schemes to be advanced to construction in 2018 and 18 additional schemes at various stages of design/planning. Work is also ongoing on 10 schemes which are completed/substantially completed and operational but which have some small minor additional works to be completed or where ongoing administration issues remain to be resolved.

Flood relief schemes are advanced by the OPW or by relevant Local Authorities with OPW providing funding for the schemes while also providing technical support. Three schemes commenced construction in 2017 and the details of these are set out below.

Scheme	Expenditure to date	Overall Project Budget	Timeframe to completion
Athlone, Co Westmeath	€0.3m	Circa €6m	Anticipated completion end 2020
Bellurgan, Co Louth	€0.15m	€0.7m	To be completed in 2018
Templemore, Co Tipperary	€0.6m	€9m	Anticipated completion end 2020

OPW had hoped that construction works would commence at Blackpool (Cork), Clonakilty and the first phase of the Lower Lee Scheme at Morrison's Island in Cork in 2017 along with the Ennis South scheme in County Clare, but delays in finalising the detailed design and some procurement and contractual issues meant that it was not possible to commence these four projects in 2017. However, they will be commenced in 2018 along with projects at Douglas and Glanmire in County Cork, the Lower Morrell River Scheme in County Kildare and Sandymount in Dublin.

In addition to the major flood relief projects as above, Local Authorities would have initiated localised minor works schemes either funded from their own resources or, more usually, with funding provided by the OPW under the Minor Flood Mitigation Works and Coastal Protection Scheme. In 2017 funding was approved by the OPW under the Minor Works scheme to local authorities for 60 minor works projects throughout the country. Details of those projects are provided on the OPW website www.opw.ie. The progression of those projects is a matter for the relevant local authorities.

Departmental Expenditure

Ceisteanna (66)

Dara Calleary

Ceist:

66. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the reason for the €8 million in capital underspend in his Department as outlined in the fiscal monitor for December 2017; if this is due to flood defence projects; and if he will make a statement on the matter. [2489/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

The capital underspend for 2017 for the PER Group with a capital allocation (D/PER, Office of Public Works, National Shared Services Office, Office of Government Procurement and Public Appointment Services) is due in the main to timing/scheduling issues in relation to the National Shared Services Office's implementation of the Financial Management Shared Services Project (€6-7m).

The allocation for flood defence projects was spent in full in 2017.

Community Employment Schemes Supervisors

Ceisteanna (67)

Brendan Smith

Ceist:

67. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform the outcome of discussions at the November 2017 meeting of the community sector high level forum in relation to the introduction of pension entitlements for community employment supervisors; and if he will make a statement on the matter. [1876/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

An issue which has been under discussion by the Community Sector High Level Forum relates to community employment supervisors and assistant supervisors who have been seeking, through their union representatives, the allocation of Exchequer funding to implement a Labour Court recommendation relating to the provision of a pension scheme.

At the April meeting of the Forum, my Department outlined its intention to conduct a detailed scoping exercise in order to comprehensively examine and assess the full potential implications of the issues under consideration. In considering the particular matter referred to, regard must be had to the costs and precedent of such an arrangement were one to be created.

It continues to be the position that state organisations are not the employer of the particular employees concerned and that it is not possible for the State to provide funding for such a scheme. The employees in question are, or were, employees of private companies notwithstanding the fact that the companies concerned are, or were, reliant on State funding.

As you are aware, a meeting of the Forum took place on Thursday, 23 November 2017 where the findings of the scoping exercise were shared with members of the Forum.  A follow up meeting to deal with technical questions arising from the exercise took place on Friday, 15 December 2017.    

Weather Events Expenditure

Ceisteanna (68)

Éamon Ó Cuív

Ceist:

68. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform if assessments have been carried out by the Office of Public Works on the damage caused by recent storms and particularly Storm Eleanor to the coast of County Galway at Leenane, Oranmore, Clarinbridge, Galway city and other locations; the progress made in drawing up a list of works for funding; the locations and nature of proposed works; and if he will make a statement on the matter. [2571/18]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform (Deputy Kevin Boxer Moran)

The Department of Housing, Planning and Local Government is the lead Government Department with responsibility for co-ordinating the national emergency response for severe weather events such as Storms Ophelia and Eleanor. In discharging the Department's responsibilities in that role, the Major Emergency Management Unit of the Department co-ordinates, collates and reports on assessments of the impact of the severe weather event carried out by the relevant local authorities.

The Office of Public Works therefore has not undertaken an assessment of the damage caused by the recent storms as this would be a matter for the local authorities in the first instance who would report the results of those assessments to the lead co-ordinating Department of Housing, Planning and Local Government.

Public Expenditure Policy

Ceisteanna (69, 71, 72, 80)

Bernard Durkan

Ceist:

69. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which he expects his Department to be in a position to positively influence economic growth while retaining prudent policy measures; and if he will make a statement on the matter. [2594/18]

Bernard Durkan

Ceist:

71. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the measures he plans to discourage dependency by Revenue in the future on one sector in the economy having particular regard to the lessons learned previously; and if he will make a statement on the matter. [2596/18]

Bernard Durkan

Ceist:

72. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which he remains satisfied that each Department continues to effectively operate best practice in the context of public expenditure and reform with a view to ensuring long lasting benefits for the population and the economy; and if he will make a statement on the matter. [2597/18]

Bernard Durkan

Ceist:

80. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which each Department continues to maintain good practice in terms of expenditure in keeping with both the effects of the economic recession and the growing demands of the recovery; and if he will make a statement on the matter. [2605/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 69, 71, 72 and 80 together.

Supporting growth in our economy is an important priority for the Government, and sound and sustainable public finances are an essential element of achieving that goal. Public expenditure is of particular importance in this regard, in terms of protecting growth through investment in our social and economic priorities by way of efficient and effective spending.

Effective management of the delivery of public services within budgetary allocations is a key responsibility of each Minister and their Departments. The Department of Public Expenditure and Reform is in regular contact during the year with all other Government Departments and Offices to ensure that expenditure is being managed within the overall fiscal parameters. Information in relation to gross and net voted expenditure is published monthly in the Department of Finance’s Fiscal Monitor.

In recent years, the Government has managed spending in a sustainable and prudent manner, with growth in public expenditure increasing at a lower rate than growth in the economy overall. The reforms put in place since the economic crisis, such as the implementation of the medium-term expenditure framework, the performance budgeting initiative, the Spending Review process, etc. have all played a part in putting our public finances on the stable footing they are on today. Steady, incremental progress in public expenditure, alongside a continuing focus on value for money, will help to keep us on a sustainable path, thereby ensuring long lasting benefits for the people and the economy. 

Public capital investment is a key component of supporting balanced regional growth in all sectors of our economy and increasing the capacity of our economy in the long-term. The review of the Capital Plan, carried out in 2017, reflects where sectoral gaps exist. The review sought to assess how enhancing investment in public infrastructure can support resilience in the economy, particularly in the context of Brexit, climate change and the potential for overheating as our economy approaches full capacity. This review is based on robust analysis and has provided a useful evidence base to support planning going forward.

Turning to revenue, the Department of Finance last week published its Annual Taxation Report. The Report notes that taxation receipts have recovered from their post-crisis nadir and, at the end of last year, the level of receipts was the highest on record. Against this backdrop, the report examines taxation trends since the beginning of the last decade to deepen the understanding of developments and to monitor and highlight key issues, including the emergence of any imbalances.

Public Service Reform Plan Measures

Ceisteanna (70)

Bernard Durkan

Ceist:

70. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects reform to continue to play a positive role in Ireland's progress in the future; and if he will make a statement on the matter. [2595/18]

Freagraí scríofa

Minister for Public Expenditure and Reform

Public Service reform will continue to play a positive role in the country's progress in the future. As the Deputy will be aware, a new phase for public service reform was set out in the framework Our Public Service 2020 published in December.

Our Public Service 2020 aims to deliver better outcomes for the public, to support innovation and collaboration and to build public service organisations that are resilient and agile. Implementation of the 18 actions in Our Public Service 2020 will have an ongoing positive impact on economic performance in the future.

In addition to the actions set out in the framework, reform is taking place independent of the framework whether whole-of-government or Department/Sector led reforms. To illustrate the breadth of reform across the public service the publication includes a chapter outlining key reform strategies from the main sectors namely Health, Justice and Equality, Education, Local Government, Defence and the Civil Service. It also includes material on Government and legislative reform.