Billy Kelleher
Ceist:456. Deputy Billy Kelleher asked the Minister for Employment Affairs and Social Protection the estimated cost to the Exchequer of a proposal (details supplied). [20103/18]
Amharc ar fhreagraSocial Insurance Data
Ceisteanna (456)
Freagraí scríofa
Self-employed workers who earn €5,000 or more in a contribution year, are liable for PRSI at the Class S rate of 4%, subject to a minimum annual payment of €500. This provides them with access to the following benefits: State pension (contributory) and widow’s, widower’s or surviving civil partner’s pension (contributory), guardian’s payment (contributory), maternity benefit, adoptive benefit, paternity benefit, treatment benefit (from March 2017) and invalidity pension, which was extended to the self-employed from December 2017.
This compares favourably with employees who, in general, are liable to the Class A rate of 4%. In addition their employers are liable to PRSI at the rate of 8.6% on weekly earnings up to and including €376 or at the rate of 10.85% where weekly earnings exceed €376. Accordingly the combined rate of PRSI rate paid in respect of Class A employees is 12.6% or 14.85%, depending on the level of weekly earnings. These Class A employees are entitled to the full range of social insurance benefits.
The issue of extending additional social insurance benefits to the self-employed paying Class S PRSI was considered in the Actuarial Review of the Social Insurance fund (SIF) as at 31 December, 2015, which was published on 18 October 2017.
The review found that the combined cost of introducing the invalidity, illness, jobseeker’s and carer’s benefits for Class S contributions is estimated to be €118 million in 2018, rising steadily to €223 million in 2020. By 2025 the projected cost is €413 million and, over the period of the review the cost would rise to €1.3 billion in 2071. These costs assume that the cost of extending invalidity pension to the self-employed builds up steeply for the first 10 years after introduction after which time the scheme is almost at maturity or a steady state.
For the shorter term schemes, illness and jobseeker’s benefits, it is estimated that they will reach maturity after 2 years. Projected expenditure on jobseeker’s benefit assumes the same incidence rate as prevail in the employed (PRSI Class A) population. While the review assumed that entitlement to the extended schemes would commence in January 2018, a commencement date of January 2019 would have similar results. Detailed costings of the extension of invalidity pension (entitlement was extended in December 2017) and illness, jobseeker’s and carer’s benefits are contained in the following table.
|
Year |
Invalidity Pension |
Illness Benefit |
Jobseeker’s Benefit |
Carer’s Benefit |
Total € million |
|
2019 |
30 |
40 |
45 |
2 |
118 |
|
2020 |
59 |
54 |
58 |
3 |
173 |
|
2021 |
87 |
72 |
60 |
4 |
223 |
|
2022 |
125 |
88 |
63 |
5 |
281 |
|
2023 |
152 |
94 |
67 |
5 |
317 |
I hope this clarifies the matter.
State Pensions
Ceisteanna (457)
Peter Fitzpatrick
Ceist:457. Deputy Peter Fitzpatrick asked the Minister for Employment Affairs and Social Protection if a person (details supplied) can buy voluntary contributions to make it up to 520 contributions for a State pension; and if she will make a statement on the matter. [20105/18]
Amharc ar fhreagraFreagraí scríofa
The legislation governing voluntary contributions is contained in the Social Welfare Consolidation Act 2005 and Statutory Instrument 312/1996.
The acceptance criteria for the voluntary contributions scheme currently requires applicants
- To submit an application within 60 months (5 years) of the end of the year in which they last paid, or were credited with a social insurance contribution
- To have a minimum of 520 compulsory paid contributions prior to application
According to the records of my Department, the person concerned last paid compulsory PRSI in 1980 and has a total of 491 reckonable contributions.
In the circumstances, she cannot be admitted as a Voluntary Contributor, as a considerably longer period of time has elapsed beyond the prescribed 60 month limit and she has paid less than the required 520 compulsory PRSI contributions.
I hope this clarifies the matter for the Deputy.
Pension Provisions
Ceisteanna (458)
Catherine Murphy
Ceist:458. Deputy Catherine Murphy asked the Minister for Employment Affairs and Social Protection if her attention has been drawn to correspondence (details supplied) regarding a pension scheme; and if she will make a statement on the matter. [20122/18]
Amharc ar fhreagraFreagraí scríofa
While it is not appropriate for me to comment on an individual pension scheme, I am aware of recent announcements regarding the Irish Life pension scheme and plans to close the scheme to future accrual. Neither I nor the Pensions Authority has the power under legislation to intervene to compel an employer to continue to make contributions to a scheme. Even where a scheme is closed to new members or to future accrual of benefits, the sponsoring employer role continues in relation to that scheme.
Almost all Irish defined benefit schemes have a rule that allows the employer to cease contributions, usually after a notice period. Currently there is no legislative obligation on the employer to make contributions and no further liability on the employer where contributions cease. Neither is there an obligation on the employer to give notice to members or to consult in advance of ceasing contributions.
However, in the case where a restructuring of benefits is proposed, the employer and the trustees of a pension scheme are required to notify scheme members, beneficiaries and the authorised trade unions. Furthermore, changes made to the Occupational Pension Schemes (Section 50 and 50B) Regulations in 2015 require trustees to also notify groups representing the interests of pensioners and deferred scheme members in a scheme in such a situation.
The Roadmap for Pensions Reform, which was published recently, details specific measures that will modernise our pension system. It sets out under Strand 4, ‘Measures to Support the Operation of Defined Benefit Schemes’, that the Government is committed to advancing the Social Welfare, Pensions and Civil Registration Bill 2017. The purpose of this Bill is to respond to the ongoing difficulties in DB schemes and to increase protections for members as well as encouraging employers to ensure that schemes are well funded and managed.
The general scheme of the Bill, which was published in May 2017, contained a number of key measures relating to DB pension schemes. These proposed provisions will ensure that an employer cannot “walk away” at short notice from the pension scheme it is supporting by providing a 12 month notification period where an employer is seeking to cease making contributions to a scheme. The amendments seek a middle road between the current position where employers can abandon DB schemes and full and immediate debt on employer provisions. The measures will act to support existing provisions in the Pensions Act and will provide for further protection for scheme members’ benefits and enhance employer responsibilities for their schemes.
The amendments also provide for more frequent monitoring of the financial position of schemes and will further provide that, where a scheme is in deficit and a funding proposal has not been put in place in a timely manner, the Pensions Authority may direct steps to be taken to ensure that the scheme meets the funding standard.
It is important to note that if this new legislation is enacted, a scheme will have to give a minimum notice period of twelve months before contributions can be stopped. However, it will not prevent a company from ceasing contributions once the minimum notice period is served provided the scheme meets the Minimum Funding Standard.
These provisions are quite technical and complex. Work to finalise them is at an advanced stage and I hope to be in position to bring forward the amendments at Committee Stage at the end of May or early June. With the cooperation of the Oireachtas, the Government intends to pass this legislation before the summer recess.
I hope this clarifies the matter for the Deputy.
Employment Support Services
Ceisteanna (459)
Joan Burton
Ceist:459. Deputy Joan Burton asked the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 122 of 1 May 2018, her plans to improve the employment progression for persons who are not active in the labour market under the guiding principle of active inclusion for the period 2018 to 2020 as set out in Pathways to Work 2016-2020; and if she will make a statement on the matter. [20159/18]
Amharc ar fhreagraFreagraí scríofa
In recent years, the social protection system has undergone significant reforms, moving away from passive income supports to an ‘active inclusion’ approach that seeks to maximise the potential of all working age adults, with appropriate supports and services. In this context, I understand that this question relates primarily to policies related to employment progression for people with disabilities.
In line with commitments under the Comprehensive Employment Strategy for people with disabilities and Pathways to Work 2016-2020, my Department has progressively expanded mainstream activation services to cater for people with disabilities. The Intreo service, the Departments integrated employment support service, is central to this process.
People with a disability may, on a voluntary basis, seek an appointment with an employment supports case officer to discuss their employment ambitions and develop a personal progression plan. Staff in Intreo offices have undertaken training to better support persons with disabilities who want to pursue further education, training or work opportunities. While the Intreo service acts as the primary gateway to employment supports, it may also refer those with more complex needs to other bodies for specialist training or employment supports.
For example, with a disability who are job ready and need a level of support to succeed in long-term and sustainable employment can avail of the EmployAbility Service (a nationwide service, funded by and delivered on behalf of the department). The service provides a range of career advice and employment supports to employers and people with a disability, through Job Coaches. Additionally, a new programme ‘Ability’ will commence in Q2 2018. This programme aims to bring young people (aged 15-29) with disabilities, who are not yet job-ready, closer to the labour market through a range of person-centred supports. The programme will be delivered by a range of local providers who specialise in providing supports for people with a disability.
The Make Work Pay Report, published in April 2017, contains a number of recommendations covering a range of Government departments. While the Government has decided to implement some of the recommendations, others require further consultation with disability service providers and stakeholders. These include developing and extending interdepartmental and interagency protocols to ensure that the recommendations are reviewed on a regular basis. A number of the report’s recommendations, relating to my Department, have already been implemented, namely:
- People with a long-term disability who take up employment will retain their Free Travel Pass for a period of five years
- A fast-track return to Disability Allowance in situations where the employment does not work out.
Furthermore, a number of other recommendations are the subject of on-going work, including:
- The development of a “Ready Reckoner” to calculate the net benefit of a return to work for people on a disability type payment.
- Amending legislation to dispense of the requirement that work must be of a rehabilitative nature
My Department engages regularly with employers to highlight the benefits of employing people with disabilities. It also provides a range of work related supports for employers who recruit and employ people with disabilities, including:
- The Wage Subsidy Scheme (WSS) that has been designed to increase the likelihood of people with disabilities participating in the open labour market by providing financial incentives to private sector employers;
- The Reasonable Accommodation Fund assists employers to take appropriate measures to enable a person with a disability or impairment to access employment. Available grants and supports include; the Workplace Equipment Adaptation Grant, the Personal Reader Grant, the Job Interview Interpreter Grant and an Employee Retention Grant.
- The Employer Information Pack, available on the Department’s website (www.welfare.ie), which contains information on services and supports available to people with disabilities and employers.
The Government remains committed to removing barriers to employment for people with disabilities by focusing on ability rather than disability and enhancing potential through education, training and employment.
Mental Health Services Provision
Ceisteanna (460)
Michael Healy-Rae
Ceist:460. Deputy Michael Healy-Rae asked the Minister for Employment Affairs and Social Protection if a matter (details supplied) will be addressed regarding mental health in County Kerry; and if she will make a statement on the matter. [20167/18]
Amharc ar fhreagraFreagraí scríofa
This issue is a matter for my colleague, the Minister of Health
Question No. 461 answered with Question No. 48.
Tenant Purchase Scheme
Ceisteanna (462, 494)
Darragh O'Brien
Ceist:462. Deputy Darragh O'Brien asked the Minister for Housing, Planning and Local Government when the new tenant purchase scheme will be launched; the mortgage approval process regarding same; and if he will make a statement on the matter. [20368/18]
Amharc ar fhreagra
Eamon Scanlon
Ceist:494. Deputy Eamon Scanlon asked the Minister for Housing, Planning and Local Government the position regarding the situation whereby pensioners cannot purchase their homes under the tenant purchase scheme; and if he will make a statement on the matter. [20171/18]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 462 and 494 together.
The Tenant (Incremental) Purchase Scheme came into operation on 1 January 2016. The Scheme is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the Scheme. To be eligible, tenants must meet certain criteria, including having a minimum reckonable income of €15,000 per annum and having been in receipt of social housing support for at least one year.
The minimum reckonable income for eligibility under the scheme is determined by the relevant local authority in accordance with the detailed provisions of the Ministerial Direction issued under Sections 24(3) and (4) of the 2014 Act. In the determination of the minimum reckonable income, local authorities include income from a number of different sources and classes, such as from employment, private pensions, maintenance payments and certain social welfare payments, including pensions, where the social welfare payment is secondary to employment income.
In determining reckonable income, the income of all tenants of the house, including adult children that are joint tenants, is included, as is the income of the spouse, civil partner or other partner/co-habitant of a tenant who lives in the house with them, thus ensuring the appropriate level of discount is applied to the purchase price.
The minimum income criterion was introduced in order to ensure the sustainability of the scheme. Applicants must demonstrate that they have an income that is long-term and sustainable in nature. This ensures that the tenant purchasing the house is in a financial position, as the owner, to maintain and insure the property for the duration of the charged period, in compliance with the conditions of the order transferring the ownership of, and responsibility for, the house from the local authority to the tenant.
The financing of any house sold under the Tenant (Incremental) Purchase Scheme is a separate matter from the eligibility criteria for the scheme. If the tenant is deemed eligible under the scheme, he or she may fund the purchase of a house from one, or a combination, of his/her own resources or a mortgage provided by a financial institution or a local authority house purchase loan.
In line with the commitment given in Rebuilding Ireland, a review of the first 12 months of the Tenant Purchase Scheme’s operation has been undertaken. The review has incorporated analysis of comprehensive data received from local authorities regarding the operation of the scheme during 2016 and a wide-ranging public consultation process which took place in 2017 and saw submissions received from individuals, elected representatives and organisations.
The review is now complete and a full report has been prepared setting out findings and recommendations. In finalising the report some further consultation was necessary and due consideration had to be given to possible implementation arrangements.
These matters are now almost completed and I expect to be in a position to publish the outcome of the review shortly.
Housing Adaptation Grant
Ceisteanna (463)
Michael Healy-Rae
Ceist:463. Deputy Michael Healy-Rae asked the Minister for Housing, Planning and Local Government if he will address a matter regarding a housing adaption grant in the case of a person (details supplied); and if he will make a statement on the matter. [19641/18]
Amharc ar fhreagraFreagraí scríofa
The Housing Adaptation Grant for People with a Disability assists people with a disability in private houses to have necessary adaptations, repairs or improvement works carried out in order to make their accommodation more suitable for their needs. While my Department provides funding to local authorities for the suite of Housing Adaptation Grants for Older People and People with a Disability, the detailed administration of the schemes, including the assessment, approval and payment of individual grants to applicants and the assessment of eligible works, is the responsibility of the relevant local authority. I understand in the case referred to, the Council has been in recent contact with the applicant in order to assess the project and the likely funding that would apply.
Local Authority Housing Data
Ceisteanna (464)
Róisín Shortall
Ceist:464. Deputy Róisín Shortall asked the Minister for Housing, Planning and Local Government the estimated value of a site (details supplied) in Dublin 9; the way in which it is proposed that Dublin City Council will realise the full value of this site in a transaction to develop housing at the location; and if he will make a statement on the matter. [19642/18]
Amharc ar fhreagraFreagraí scríofa
The site at Oscar Traynor Road is one of three significant sites being brought forward by Dublin City Council under its Housing Land Initiative (HLI), the aim of which is to ensure the delivery of mixed-tenure homes in the City Council functional area. All three sites under the HLI are identified as Strategic Development and Regeneration Areas (SDRA) within the Dublin City Development Plan 2016-2022.
Mixed-tenure developments are an important policy objective in Rebuilding Ireland and uphold the principle of sustainable mixed communities, where housing needs are not subject to rigid segregation, based on income levels. They also provide an opportunity to see major sites developed more quickly, and integrated into existing communities and areas.
Oscar Traynor Road is a 17 hectare greenfield site with the potential to yield 640 mixed-tenure homes and the elected members of the City Council have determined that the homes will be provided on the basis of a 30% social, 20% affordable, and 50% private tenure-mix. This mix will help to ensure that the full value of the site will be realised.
The land is being brought to market on a competitive tendering basis, with a view to leveraging its value to deliver the optimal number of units. The Council is seeking to identify the best qualified economic operator to work in collaboration with the Council to identify the optimal solution for the site, in accordance with the City Development Plan 2016 - 2022; the Oscar Traynor Road Feasibility Study, which has been approved by the elected members; and any other Council requirements; and to deliver it as efficiently as possible.
The Feasibility Study indicates that the full value of the land will be retrieved from the proposed new development. In terms of the publicly funded elements, as with all such construction projects, the development of this site must comply with the Government’s Capital Works Management Framework and procurement rules, to ensure greater cost certainty, best value for money and financial accountability.
This is a priority project for the City Council and it is progressing through procurement with the Prior Information Notice (PIN) published in June 2017 and the Pre-Qualification Questionnaire (PQQ) issued on 9 February 2018. My Department and I remain committed to working with Dublin City Council to ensure that the necessary resources are in place to deliver the mixed-tenure homes planned on what is a key site for the sustainable development of Dublin City.
Question No. 465 answered with Question No. 72.
Planning Issues
Ceisteanna (466)
Noel Grealish
Ceist:466. Deputy Noel Grealish asked the Minister for Housing, Planning and Local Government the status of plans to reform the planning laws to have developments such as data centres regarded as strategic infrastructure allowing them to get through the planning process quickly; and if he will make a statement on the matter. [19685/18]
Amharc ar fhreagraFreagraí scríofa
I am proposing to introduce the necessary legislative steps in the coming weeks to amend the Planning and Development Act 2000, as amended, in order to classify data centres above a certain size threshold as strategic infrastructure developments. This change will mean that applications for planning permission for data centres that meet the scale requirements will be made directly to An Bord Pleanála, thereby streamlining the planning decision-making process for such developments.
I will be tabling the necessary legislative amendment at Seanad Report Stage of the Planning and Development (Amendment) Bill 2016, which is presently progressing through the Oireachtas and which recently completed Seanad Committee Stage.
Home Loan Scheme
Ceisteanna (467, 468, 473)
Michael McGrath
Ceist:467. Deputy Michael McGrath asked the Minister for Housing, Planning and Local Government if it is a condition that borrowers must have accumulated a deposit of 3% by way of savings as part of the Rebuilding Ireland home loan scheme; if a record of paying rent is taken into account in this regard; and if he will make a statement on the matter. [19686/18]
Amharc ar fhreagraMichael McGrath
Ceist:468. Deputy Michael McGrath asked the Minister for Housing, Planning and Local Government if the 10% deposit requirement can be met by a combination of the help-to-buy scheme and a gift from parents or another family member as part of the Rebuilding Ireland home loan scheme provided all other scheme conditions are satisfied; and if he will make a statement on the matter. [19687/18]
Amharc ar fhreagra
Brendan Smith
Ceist:473. Deputy Brendan Smith asked the Minister for Housing, Planning and Local Government his plans to reduce the 10% requirement for the new local authority house loan in view of the difficulties facing potential applicants that have been paying high rents and find it difficult to accumulate the required deposit; and if he will make a statement on the matter. [19873/18]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 467, 468 and 473 together.
The new Rebuilding Ireland Home Loan Scheme is designed to enable credit worthy first-time buyers to access sustainable mortgage lending to purchase new or second-hand properties. The low rate of fixed interest associated with the Rebuilding Ireland Home Loan provides first-time buyers with access to mortgage finance that they may not otherwise have been able to afford at a higher interest rate.
To support prudential lending and consistency of treatment for borrowers, a Loan to Value ratio of 90% applies to the Rebuilding Ireland Home Loan as per the Central Bank's prudential lending guidelines. Therefore, in order to avail of the loan, applicants must have a deposit equivalent to 10% of the market value of the property.
Applicants must provide bank or similar statements (such as post office, credit union etc.) for a 12-month period immediately prior to making an application, clearly showing a credible and consistent track record of savings. The cash savings should be no less than 3% of the market value of the property. Gifts are permissible up to 7% of the market value of the property, where their source is verified.
Exceptions to the above can be made where an applicant/applicants can clearly demonstrate a consistent and credible record of savings or rent payment through their bank account which at a minimum is equal to -
- In the case of a fixed rate loan, the proposed monthly loan repayment or
- In the case of a variable rate loan, the proposed stress tested monthly loan repayment.
For prospective purchasers of newly-built properties, the availability, through the Revenue Commissioners, of the Help to Buy Initiative for first-time buyers may provide additional assistance to prospective applicants for the Rebuilding Ireland Home Loan.
Further information, including a Frequently Asked Questions section, is available on the Rebuilding Ireland Home Loan website at http://rebuildingirelandhomeloan.ie.
Register of Electors Administration
Ceisteanna (469)
Ruth Coppinger
Ceist:469. Deputy Ruth Coppinger asked the Minister for Housing, Planning and Local Government his views on expanding the number of persons that can sign applications for the supplementary register of electors in order to increase access to the register; and if he will make a statement on the matter. [19704/18]
Amharc ar fhreagraFreagraí scríofa
Electoral law provides that an application for inclusion in the supplement to the Register of Electors must be signed by the applicant in the presence of a member of An Garda Síochána from the applicant's local Garda station who must first be satisfied to the person's identity before signing, dating and stamping the form. The Garda may request photographic or other identification. Where the applicant establishes in writing that he/she is unable to progress the application in this way, the form can be signed by the applicant in the presence of an official of the registration authority who is satisfied as to his or her identity. Again, photographic or other identification may be required. If neither option is viable due to physical illness or physical disability, the application form must be accompanied by a medical certificate. While electoral law is subject to ongoing review, I have no immediate proposals to extend the current arrangements.
Homeless Persons Data
Ceisteanna (470)
Eoin Ó Broin
Ceist:470. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government if he will address issues (details supplied) regarding the miscategorisation of persons in local authority homeless figures. [19742/18]
Amharc ar fhreagraFreagraí scríofa
I refer to the reply to Questions Numbers 24 and 25 on today's Order Paper which sets out the position in this matter.
Local Infrastructure Housing Activation Fund
Ceisteanna (471)
James Lawless
Ceist:471. Deputy James Lawless asked the Minister for Housing, Planning and Local Government if funding for the proposed ring road is dependent on a particular route being selected as part of the Part 8 process; and if he will make a statement on the matter. [19743/18]
Amharc ar fhreagraFreagraí scríofa
The purpose of the Local Infrastructure Housing Activation Fund (LIHAF) is to relieve critical infrastructural blockages for key sites to activate housing delivery. Funding awarded under LIHAF is done on a matched funding basis, where a grant is given for 75% of the costs of the infrastructure and the local authority match funds that grant for the remaining 25%.
In October 2016, Kildare County Council submitted a proposal for funding for enabling infrastructure in Naas. Following a detailed assessment period, a grant agreement was signed in October 2017 and I approved €6m funding for the project consisting of €4.5 million in Exchequer funding and €1.5 million in matched funding from the Local Authority.
The grant agreement specifies the value of the grant to be awarded for the funding of public infrastructure, that it must be spent on a relief road to enable housing delivery, and that there is an associated housing activation target that must be met by the end of 2021.
The exact route of the proposed road is a matter for Kildare County Council and the Part 8 process to determine. As such processes are the reserved function of local authorities, this is not a matter in which I have a role.
However, I note that should a particular route prove more costly than initially estimated, it is not possible to increase the grant that has been awarded, and any extra cost would need to be met by the Council. Similarly, the timelines set for the completion of the infrastructure and for housing activation must continue to be capable of being met. It is a key requirement under LIHAF that this infrastructure must activate housing supply by 2021 at the latest.
Electoral Register
Ceisteanna (472)
Seamus Healy
Ceist:472. Deputy Seamus Healy asked the Minister for Housing, Planning and Local Government his plans to allow British citizens living here to vote in referenda and presidential elections; and if he will make a statement on the matter. [19749/18]
Amharc ar fhreagraFreagraí scríofa
The Constitution (Article 47.3 and Article 12.2.2) provides that Irish citizens who have the right to vote at Dáil Elections shall have the right to vote at a referendum and at an election for President.
British citizens, who are ordinarily resident in the State and are 18 years or older, may vote at Dáil, European Parliament and local elections if they are entered in the register of electors.
I have no plans to seek to amend the Constitution to give the right to vote in referendums or Presidential elections to non-Irish citizens.