Written Answers Nos. 84-110
84. Deputy Clare Daly asked the Taoiseach and Minister for Defence the date on which the last director medical branch conference took place; and the date on which the next conference is scheduled to take place. [17903/19]
Amharc ar fhreagraI am advised that the last Director Medical Branch conference was held on 8 November 2018, and that the next conference is currently scheduled for 18 April 2019.
85. Deputy Maurice Quinlivan asked the Taoiseach and Minister for Defence if the decision not to award a person (details supplied) pension entitlements from their recently deceased spouse will be reviewed; and if he will make a statement on the matter. [17944/19]
Amharc ar fhreagraThe position is that the late spouse of the person in question was not a member of the Defence Forces Contributory Spouses and Children’s Pension Scheme. He opted out of the Original Scheme in 1977 and did not opt to join the Revised Scheme in 1985 when given the opportunity to do so. Accordingly, it is regretted that there is no spouse’s pension payable under the Scheme and the person in question has been informed of this.
In the past, an option in relation to Scheme membership could not be changed. However, in recent years, a limited appeals process was introduced to examine individual cases and to allow appeals that meet any one of the following criteria:
(i) where there is no evidence that an option was provided to the individual public servant in the first place;
(ii) where there is medical evidence to indicate that the person making the decision not to join the scheme was of sufficiently unsound mind not to appreciate the consequences of his or her decision;
(iii) where a member of the original scheme declined to join the revised scheme in circumstances where there would have been no reasonably foreseeable adverse financial consequences for the individual (in terms only of his or her scheme contributions) had he or she instead opted to join the revised scheme.
This case has also been examined in the context of the above limited appeals process but, unfortunately, there is no evidence that it meets any of the criteria. If it is considered that there is further information which may be of relevance, this can be sent to my Department and the matter will be considered further.
86. Deputy Joan Burton asked the Taoiseach and Minister for Defence the cost of recruitment campaigns for the Defence Forces in 2018; and the number of new recruits in the Defence Forces in 2018. [18048/19]
Amharc ar fhreagraIn 2018, expenditure relating to the publicity and advertising of the various recruitment campaigns amounted to approximately €424,000.
The number of inductions to the Defence Forces in 2018 was 612, which included 492 (32F) General Service recruits.
87. Deputy Micheál Martin asked the Tánaiste and Minister for Foreign Affairs and Trade his views on the Good Friday Agreement, and in particular regarding strands 1 and 2 being suspended in their entirety; and if he has spoken with the Secretary of State for Northern Ireland on same recently. [17817/19]
Amharc ar fhreagraThe continuing absence of vital institutions of the Good Friday Agreement is a source of deep concern for the Government, as it is for the British Government. The Government will continue to do everything in its power, in accordance with its responsibilities as a co-guarantor of the Good Friday Agreement, to secure the effective operation of all of its institutions.
The devolved institutions of the Agreement are urgently needed so that the Assembly and power-sharing Executive can represent the interests of all of the people of Northern Ireland and address issues of concern. There are pressing decisions and issues across a range of areas, which require a functioning Executive and Assembly.
The North South Ministerial Council is also essential to oversee and develop North South cooperation on matters of mutual interest, as provided for under the Good Friday Agreement.
Following the most recent round of consultations by the two Governments with the parties on 15 February, I do not underestimate the way to go in achieving a resolution. However, I continue to believe that this can be achieved and there is an increasingly urgent need for talks to begin.
Unfortunately, the difficulties that have arisen in relation to the UK exit from the European Union and getting the Withdrawal Agreement ratified by the UK, has predominated in recent weeks. However, the Government has always strongly argued that the challenges raised by the UK exit must not stand in the way of getting all the institutions of the Good Friday Agreement up and working again. Indeed, the challenges raised by the UK exit from the European Union for the island of Ireland are further profound and compelling reasons for the devolved power-sharing institutions in Northern Ireland and the North South Ministerial Council to be operating on behalf of citizens, and in accordance with their respective mandates under the Good Friday Agreement.
Both Governments remain determined to find a way beyond the current impasse to get the institutions of the Agreement operating again. The legislation that was brought forward by the Secretary of State for Northern Ireland, which temporarily suspends the requirement to call an Assembly election, underlines the urgent requirement for all with responsibilities to do everything in their power to get them operating again.
I will continue to work with the Secretary of State and remain in regular contact with the leaders of each of the political parties, to get the necessary political process underway to secure an agreement for a functioning Executive and Assembly and North South Ministerial Council.
88. Deputy Mick Wallace asked the Minister for Finance if there have been discussions on VAT rates payable for legal services specifically for family law; his plans to conduct a review to examine the idea of providing a VAT exemption or reduction for legal advice for family law proceedings with a view to removing some of the financial burden placed on families experiencing marital breakdown or a change in relationship; and if he will make a statement on the matter. [11992/19]
Amharc ar fhreagraThe VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT Directive legal services are liable to VAT at the standard rate, currently 23%.
In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within categories of goods and services specified in the Directive, in respect of which Member States may apply a lower rate or exemption from VAT. The supply of legal services is not included in any of those categories of services and therefore there is no discretion for Ireland to adjust the VAT rate applicable on this service.
90. Deputy Brendan Griffin asked the Minister for Finance if his Department will investigate the removal of small business customers overdrafts accounts and the sale of debt by a bank (details supplied); and if he will make a statement on the matter. [17964/19]
Amharc ar fhreagraThe Deputy will be aware that a reduction in the level of non performing loans (NPLs) across European banks is a major priority for the European banking regulator, the SSM. Given this position, banking regulators have tasked each bank with developing and implementing strategies with the expectation that their ratios will be reduced towards the European average. Despite the significant number of restructures undertaken, given the sale of reduction required, it was inevitable though unfortunate, that loan sales would be required.
I should highlight for the Deputy that in my role as Minister for Finance, I cannot stop loan sales even by the banks in which the State has a shareholding. Decisions in this regard, as well as the criteria used to decide the make-up of loans to be included, are the sole responsibility of the board and management of the banks which must be run on an independent and commercial basis. The banks’ independence is protected by Relationship Frameworks which are legally binding documents that I cannot change unilaterally. These frameworks which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.
It is important to reiterate that the protections in place for all borrowers before a sale, either by way of securitisation or otherwise, remain unchanged. Under the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018, which came into effect on 21 January 2019, if a loan is transferred the holder of the legal title to the credit must now be authorised by the Central Bank as a credit servicing firm. Such credit servicing firms must act in accordance with Irish financial services law that applies to ‘regulated financial service providers’. This ensures that consumers, whose loans are sold to another firm, maintain the same regulatory protections that they had prior to the sale.
Furthermore, in terms of overdrafts being converted into a loan facility and transferred to a Retail Credit Firm, customers have the right to appeal the withdrawal of any undrawn funds (from the overdraft facility) to the Credit Review Office (CRO). The CRO is able to review cases where credit facilities up to €3m are refused, withdrawn, or offered on unreasonable conditions. Details of how to appeal to the CRO can be found on the website www.creditreview.ie.
Notwithstanding that the banks' independence in these matters is protected as previously discussed, officials from my department contacted AIB and it provided the following response:
"As is standard for a portfolio sales process, it is a requirement to withdraw overdraft facilities and convert these facilities into term loans. Please see detailed below the process and infrastructure in place to support overdraft customers as they transition to Everyday DAC:
- "Customers included in the portfolio sale, with an overdraft facility, have been issued with a letter providing notification of the withdrawal of the overdraft facility. As part of this notification, customers have been advised that they can utilise the full facility, including accessing available funds, throughout the notification period which will be 65 days. This provides customers with the option of availing of the full credit facility ahead of the withdrawal date.
- "Customers have also been advised that they can retain working current a/c’s (which must be maintained in a credit position) post closure of sale. This means customers can retain their bank a/c’s and there is no impact from an operational perspective in terms of physical movement of a/c’s, debits etc.
- "At the end of the notification period, the drawn balance will transfer with other Loans to Everyday Finance DAC. Any overdraft facilities with a €0 or credit balance will not transfer and will remain with AIB operating as a current/credit account.
- "As outlined in the notification letter, SME customers have the right to appeal the withdrawal of credit and the appeal will be heard in line with the current independent SME/Credit Review Office appeals process."
91. Deputy Bernard J. Durkan asked the Minister for Finance if he and the Central Bank continue to monitor the impact venture capital companies are likely to have on the housing market in view of their increased stake in the business and the extent to which they influence rising market prices. [18028/19]
Amharc ar fhreagraThe Department of Finance continues to monitor all aspects of the housing market, including the impact of venture capital companies and other institutional investors. In fact, in February of this year my Department published a paper tilted ‘Institutional Investment in the Housing Market’.
The paper describes how ownership of rental properties by large scale landlords - those that own more than 100 rental units - accounted for less than five per cent of all tenancies nationally. In 2017, the latest year for which data is available, the combined property purchasing activity of property funds, real estate companies and REITs accounted for a net one per cent of transactions.
The Central Statistics Office is due to publish updated data on the market activity of all non-household buyers in the summer. Publication of this data will allow further analysis of the impact of institutional investors such as venture capital companies.
The Government’s primary response to mitigating residential price inflation is to increase supply. I understand that in 2019, the vast majority of investments made by institutional investors will be via ‘forward commit’ deals i.e. the funding or forward purchasing of yet-to-be-built stock. This is a very positive development in terms of boosting supply, particularly as the focus of most institutional investors is on the construction of apartments. As the National Planning Framework sets out, Ireland needs to increase the density of its housing stock if we are to meet our sustainability goals.
In relation to prices, the increased presence of institutional investors has coincided with a significant deceleration in home price inflation. As of February 2019, annual residential price inflation was 4.3 per cent, substantially down from 12.5 per cent in the same month last year.
92. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he directly, or through the Central Bank, continues to monitor the levels of repossessions by lending institutions in respect of family homes in which the borrower continues to make realistic repayments in circumstances in which the lender decided to claim repossession nonetheless; and if he will make a statement on the matter. [18029/19]
Amharc ar fhreagra93. Deputy Bernard J. Durkan asked the Minister for Finance the number of family homes or rental properties repossessed by each of the lending institutions, their agents or successors in the past five years; the number of families forced onto the local authority housing waiting list as a result; the extent to which offers were made to the lenders to continue meeting repayments which were subsequently rejected by the lenders; and if he will make a statement on the matter. [18030/19]
Amharc ar fhreagraI propose to take Questions Nos. 92 and 93 together.
I have been advised by the Central Bank of Ireland that their quarterly mortgage arrears, restructures and repossession statistics provides data on the number of property repossessions in a given quarter across all institutions. The reporting template is collected on an aggregate basis and the following tables summarises the number of Principal Dwelling Houses/Buy-to-Let repossessions on an annual basis over the past 5 years.
In relation to the extent to which offers were made to lenders to continue meeting repayments which were subsequently rejected by the lenders, the Central Bank has no data in relation to individual borrowers repayments or proposed repayments.
Finally, local authority waiting lists are a matter for my colleague the Minister for Housing, Planning and Local Government.
PDH Property Repossessions
|
2014 |
2015 |
2016 |
2017 |
2018 |
|
|
Repossessions: properties repossessed on foot of an order |
315 |
726 |
492 |
526 |
244 |
|
Repossessions: properties voluntarily surrendered/abandoned |
996 |
809 |
1,201 |
891 |
633 |
|
Total |
1,311 |
1,535 |
1,693 |
1,417 |
877 |
BTL Property Repossessions
|
2014 |
2015 |
2016 |
2017 |
2018 |
|
|
Repossessions: properties repossessed on foot of an order |
170 |
562 |
571 |
310 |
100 |
|
Repossessions: properties voluntarily surrendered/abandoned |
290 |
279 |
584 |
1,686 |
327 |
|
Total |
460 |
841 |
1,155 |
1,996 |
427 |
94. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which working capital is being provided by the various lending institutions for the farming and business sectors with particular reference to the need to ensure the ability of productive sectors to have ready access to competitively priced credit; and if he will make a statement on the matter. [18031/19]
Amharc ar fhreagra102. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which each of the main banks have facilitated the borrowing requirements of the construction sector in the past 12 months; if each are performing adequately in this regard; and if he will make a statement on the matter. [18041/19]
Amharc ar fhreagraI propose to take Questions Nos. 94 and 102 together.
As the Minister for Finance I have no function in the commercial decisions of banks, however it is Government policy to ensure there is an adequate supply of credit, including working capital, to all viable SMEs and Farms.
The Central Bank of Ireland collects data on bank lending by NACE sector, and collects gross new lending drawdown data for SME lending by NACE sector. Lending for farming is captured in the ‘primary industries’ sector.
The following table shows the outstanding stock of lending at end Q4 2018 to enterprises of all sizes (SME and Large enterprises) engaged in the primary industries, construction, and business and administration sectors, as well as for all the remaining non-financial sectors, and the total non-financial lending amount. The outstanding stock of lending to SMEs only engaged in these five sectors is also shown in the second column. The final column contains data on total gross new lending to SMEs for these five sectors during all of 2018.
|
|
Total enterprise (SME & Large) lending outstanding stock (€m) |
SME lending outstanding stock (€m) |
SME gross new lending drawdowns during 2018 (€m) |
|
Primary industries |
3,990 |
3,449 |
824 |
|
Business and administration |
4,037 |
1,164 |
343 |
|
Construction |
683 |
442 |
199 |
|
Other Sectors (Ex-FI) |
34,166 |
18,330 |
3,947 |
|
Total (Ex-FI) |
42,875 |
23,385 |
5,313 |
The source of this data are table A.14 (SME & large enterprise) and A14.1 (SME) located on the Central Bank of Ireland Statistics page.
To continue to monitor levels of working capital available to SMEs, my Department conducts biannual surveys looking at demand for credit by SMEs. The most recent Department of Finance SME Credit Demand Survey, covering the period April to September 2018, shows that, when pending applications are excluded, 88% of credit applications to banks were approved or partially approved.
Of the 20% of SMEs that applied for credit in the 6 months to September 2018, 38% cited working capital/cash flow requirements as the main reason they were applying for bank finance. When asked about sources of finance for working capital, internal funds/retained earnings were the main finance source of working capital with 85% of working capital coming from this source, up 4% since September 2017.
Supporting the availability of finance for SMEs, including smaller enterprises, is a cornerstone element of Government policy in our efforts to strengthen the economy and create jobs. Government is focused on ensuring that all viable SMEs, operating in all sectors, including construction, have access to an appropriate supply of credit from a diverse range of bank and non-bank sources.
95. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied regarding the preparations undertaken by his and other Departments for Brexit notwithstanding the ongoing delays; and if he will make a statement on the matter. [18032/19]
Amharc ar fhreagraThe Government welcomed the decision of the recent European Council to an extension of the Article 50 process until 31 October 2019. The extension includes giving the UK flexibility to leave before that date should the Withdrawal Agreement be ratified.
The European Council decision made clear that the Withdrawal Agreement, including the backstop, cannot be re-negotiated and that any unilateral commitments by the UK Government should be compatible with the letter and the spirit of the Withdrawal Agreement. We welcome these important assertions.
If the UK stays in the EU beyond 22 May and holds EP elections, it will continue to be a full EU Member State. We welcome the UK’s commitment to act in a responsible and constructive way during the extension. This is important to safeguard the effective functioning of the EU as we make decisions on our future and for our citizens, and the EU27 can therefore discuss matters related to long term decisions without the UK.
The European Council also agreed that should the UK’s position on the EU-UK future relationship evolve, the EU is prepared to reconsider the political declaration on the future relationship.
The Government remains focused on the ratification of the Withdrawal Agreement as the best way to ensure an orderly withdrawal of the UK from the EU and to fully protect the Good Friday Agreement. The decision of the European Council provides the UK with more time, until 31 October, to ensure an orderly withdrawal, however while it means that the immediate risk of a no deal Brexit has receded it has not been fully averted. The preparations, that have been taking place since before the Brexit referendum took place for all possible scenarios are therefore continuing. Brexit in all scenarios will have negative consequences and as a Government we are determined to be as ready as we can be.
The Government’s Contingency Action Plan, published on 19 December 2018, sets out comprehensive, cross-Government preparations that have been taking place since even before the referendum. The Government has been taking key decisions to advance the implementation of our Brexit preparations.
This includes the preparation of Brexit related legislation, the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act, which has completed all Oireachtas stages and was signed into law by the President on 17 March.
The Act complements legal measures at EU level and focuses on measures protecting our citizens and supporting the economy, enterprise and jobs, particularly in key economic sectors. It makes provisions for continued access to healthcare, social security protection, student support and justice and security measures. The Act is primarily intended for a no deal scenario, and most of the Act will not be commenced should the Withdrawal agreement be ratified.
The legislation which I proposed in the areas of Taxation and Financial Services is an important part of the whole of Government response to Brexit, as it will ensure continuity of access for business and citizens in relation to certain taxation reliefs and allowances, as well as enabling insurance undertakings to continue to fulfil contractual obligations to their Irish customers, in a no deal scenario.
The Government has also taken important steps to prepare our economy, including through dedicated measures announced in Budgets 2017, 2018 and 2019, supported by long-term planning through the National Development Plan and the National Planning Framework which will provide significant investment in Ireland’s public capital infrastructure.
As Minister for Finance, my objective is to protect the economic and financial interests of the State and to support the work of the Revenue Commissioners so as to minimise the Brexit disruption to trade, to the greatest extent possible. I am satisfied that my Department and its relevant agencies will continue to work to ensure that they are as prepared as possible to limit the inevitable disruption to consumers and trade, post Brexit.
As a Government we will continue to strongly encourage businesses and citizens to do the same. For instance businesses that trade with the UK should apply now to the Revenue Commission for their customs number (EORI). The Government website gov.ie/brexit is an important resource in this regard and contains information on a range of Brexit supports and advice, as well as an overview of the institutions offering financial assistance to businesses such as the SBCI, microfinance Ireland, Intertrade Ireland and Enterprise Ireland.
96. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects to be in a position to defend the 12.5% corporation tax and dispel the misinformation propagated by certain persons; and if he will make a statement on the matter. [18033/19]
Amharc ar fhreagraIreland’s corporation tax regime is a core part of our economic policy mix and is a longstanding anchor of our offering on foreign direct investment (‘FDI’).
At 12.5%, Ireland has one of the most competitive headline corporate tax rates in the OECD. This rate is applied to a broad base with limited deductions – a policy which is endorsed by the likes of the OECD as it is good for growth in our economy.
Our competitive corporation tax regime has been an important part of our industrial policy since the 1950s and has attracted real and substantive operations to Ireland since then, bringing real jobs and investment into Ireland.
The value of a stable and consistent approach to corporation tax policy, both for the business community and for the Exchequer, has long been recognised. The cornerstone of this policy is the long-term and continuing commitment to the 12.5% corporation tax rate.
Ireland has been criticised for the way in which our tax system has been used by multinationals in their aggressive tax planning structures to exploit mismatches between the tax systems of various countries and gaps in the international tax framework. In defending our domestic tax system I recognise the importance of ensuring effective taxation of multinational companies and the need for internationally agreed solutions to counter aggressive tax planning. For this reason Ireland has been, and continues to be, fully engaged with international efforts to counter aggressive tax planning, through both the OECD’s BEPS (Base Erosion and Profit Shifting) project and the co-ordinated action at EU level.
In September 2018, I published Ireland’s Corporation Tax Roadmap, marking another milestone in Ireland’s ongoing work on corporation tax reform. It lays out the next steps in implementing the various commitments we have made through the EU Anti-Tax Avoidance Directives, the BEPS reports and the recommendations set out in the Coffey Review of Ireland’s Corporation Tax Code.
Ireland continues to engage in the OECD on ongoing international tax reform and recognises that further change to the international tax framework is necessary. I am supportive of the further examination of proposals currently being discussed via the OECD Inclusive Framework and the aim of reaching a global consensus. In these discussions it is Ireland’s view that any changes must not disproportionately prejudice small open economies and any agreed outcome must be long-term, sustainable and above all fair.
In all of this we will continue to foster economic activity in Ireland, the EU and beyond by adapting and evolving our corporate tax regime, while maintaining our key 12.5% rate, and ensuring that we continue to have a regime that is transparent, sustainable and legitimate.
97. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he has identified particular or specific threats to the stability of the economy pre or post-Brexit, with particular reference to changing training conditions; and if he will make a statement on the matter. [18034/19]
Amharc ar fhreagraAs published in the Stability Programme Update for 2019, my Department provides a discussion of the risks to economy over the coming years. These are numerous and primarily external in nature.
First and foremost is the ongoing uncertainty around Brexit. Joint research by the ESRI and my Department has shown the impact that a disorderly Brexit could have for the economy. Secondly, given Ireland’s position as a small open economy with a high degree of integration in global value chains, any further disruption to trade or a slowdown in global growth would have a disproportionate impact on the Irish economy, and a stylised model based assessment of the impact of a shock to world growth is provided in the Stability Programme.
On the domestic front, the principal risks relate to potential overheating as the economy approaches full-employment, and the concentrated nature of Ireland's production base.
The best way that we can mitigate against these risks however is through prudent budgetary policy, careful management of the public finances and by focusing on competitiveness-oriented policies, and this is what this Government continues to do.
99. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he continues to monitor activities in the insurance industry with particular reference to arresting the upward spiral of premiums; and if he will make a statement on the matter. [18036/19]
Amharc ar fhreagraI am very conscious of the difficulties that increased insurance costs generally are having on many consumers, voluntary organisation and small businesses in this country. That is why the completion of the Cost of Insurance Working Group’s (CIWG) work remains very important in order to fully achieve its objectives of delivering fairer premiums for consumers and businesses, and a more stable and competitive insurance market.
In this regard, I believe that significant progress has been made on the motor side which is reflected in the fact that the most recent Central Statistics Office data indicates that the cost of motor insurance has fallen by 23.8% since July 2016. Consequently the average consumer should be seeing reductions when renewing their motor insurance.
In relation to the Report on the Cost of Employer and Public Liability Insurance, the CIWG’s most recent quarterly Progress Update on the implementation of its recommendations indicated that 24 out of the total of 26 action points which were due for completion during 2018 overall have been accomplished. This Progress Update also included an additional section providing the up-to-date status in respect of relevant recommendations from the two reports issued by the Personal Injuries Commission (PIC).
The Deputy will be aware that the PIC reported in September 2018 and concluded that soft tissue injuries are significantly higher here than in England and Wales (4.4 times) and recommended that action be taken to address this disparity through the establishment of the Judicial Council. The PIC recommended that this body would become responsible for preparing the guidelines on personal injury award levels, and would replace the Book of Quantum.
While the Working Group will continue to focus on implementing all of its recommendations, I consider that bringing the levels of damages awarded in this country more in line with those awarded in other jurisdictions is undoubtedly the single most essential challenge which must be overcome if there is to be a sustainable reduction in insurance costs. The current position with the Judicial Council Bill is that the Minister for Justice and Equality has indicated that he hopes that the Bill will be enacted by the summer. In this regard, it recently completed Committee Stage in the Seanad. Alongside this, the Law Reform Commission has included the subject of capping damages in personal injuries litigation in its draft 5th Programme of Law Reform and this work will begin shortly.
Finally, I expect that insurers’ pricing of premiums in general will take account of the measures which have been, and are being, implemented as a result of the CIWG recommendations more broadly and I believe that insurers themselves recognise this. In this regard, I would recall that Justice Nicholas Kearns, the Chairperson of the Personal Injuries Commission (PIC), noted in the foreword of its second report that insurance industry representatives on the PIC repeatedly stated that, as award levels and associated costs account for the bulk of the cost of insurance, if claims costs come down and are maintained at a consistent and predictable level, then premiums will also reduce accordingly. A further public statement by insurers to this effect would assist in efforts to continue the necessary reform.
100. Deputy Bernard J. Durkan asked the Minister for Finance if reference can be made to comparisons with other jurisdictions throughout Europe in respect of insurance costs here with a view to ensuring the competitiveness of the economy; and if he will make a statement on the matter. [18037/19]
Amharc ar fhreagraAt the outset, I recognise that insurance costs are important in the context of ensuring the competitiveness of the economy and I am very conscious of the difficulties being faced by certain small businesses in obtaining insurance and that a number of such businesses have had to close or are facing closure if they are unable to get cover. The Deputy will be aware that neither I, as Minister for Finance, nor the Central Bank can interfere in the provision or pricing of insurance products. However it was recognised that the State could play a role in improving the environment within which insurers operate, thus explaining why the Cost of Insurance Working Group (CIWG) was established in July 2016.
I understand from my officials that it is difficult to obtain reliable data to accurately compare the cost of insurance here to that in other jurisdictions throughout Europe. I am informed that international organisations, such as the OECD and Eurostat, do not publish comparative data on the cost of insurance between countries. Eurostat publishes Harmonised Index of Consumer Prices (HICP) data with regard to insurance, but this only provides a comparison of the level of inflation for different types of insurance such as motor and travel insurance. However, it is not possible to compare the underlying cost of each of the types of insurance. In addition, this does not include a comparative index for the price of insurance to businesses. Indeed, the CSO noted in its recent report to the CIWG on the feasibility of producing an index to measure the cost of insurance to businesses that there is little international precedent for such an index.
In any event, any international comparisons on the basis of price alone would not take into account factors such as the various regulatory environments and liability systems in place in different jurisdictions. However, increasing the availability of data in Ireland in relation to insurance and understanding the factors that influence or drive the cost of it are important. This was recognised by the CIWG and both of its Reports on the Cost of Motor Insurance (2017) and the Cost of Employer and Public Liability Insurance (2018) recommended a number of actions to improve transparency. In this regard, I believe the Central Bank (National Claims Information Database) Act, 2018 will be a major help from a transparency perspective. As the Deputy will be aware, the relevant legislation to establish the database was commenced in late January, and the Central Bank expects to produce its first report in the second half of this year. While its initial focus will be on the cost of motor insurance, I look forward to the Central Bank’s analysis by the end of this year on the feasibility and merit of extending the Database to employer and public liability insurance. If such a move is feasible, this is something I think will have a positive impact on understanding in more detail the recent trends in the cost of insurance to businesses.
Increasing transparency is not a solution by itself, I believe that the issue of the rising cost of insurance and in some cases its unavailability is linked to high award levels particularly for soft tissue injuries, as well as what appears to be an increase in fraudulent and exaggerated claims. In that regard, a key recommendation of the CIWG was the establishment of the Personal Injuries Commission (PIC) which was asked to examine amongst other things award levels in this country compared with elsewhere. The PIC reported in September 2018 and concluded that soft tissue injuries are significantly higher here than in England and Wales (4.4 times) and recommended that action be taken to address this disparity through the establishment of the Judicial Council. The PIC recommended that this body would become responsible for preparing the guidelines on personal injury award levels, and would replace the Book of Quantum.
The current position with the Judicial Council Bill is that the Minister for Justice and Equality has indicated that he hopes to have the legislation enacted by the summer. In this regard, it recently completed Committee Stage in the Seanad. Alongside this, the Law Reform Commission has included the subject of capping damages in personal injuries litigation in its draft 5th Programme of Law Reform and this work will begin shortly.
Finally, I expect that insurers’ pricing of premiums in general will take account of the measures which have been, and are being, implemented as a result of the CIWG recommendations more broadly and I believe that insurers themselves recognise this. In this regard, I would recall that Justice Nicholas Kearns, the Chairperson of the Personal Injuries Commission (PIC), noted in the foreword of its second report that insurance industry representatives on the PIC repeatedly stated that, as award levels and associated costs account for the bulk of the cost of insurance, if claims costs come down and are maintained at a consistent and predictable level, then premiums will also reduce accordingly. A further public statement by insurers to this effect would assist in efforts to continue the necessary reform.
101. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which his Department can forecast economic prospects over the next five years in view of the variety of potential challenges globally; and if he will make a statement on the matter. [18039/19]
Amharc ar fhreagraThe Irish economy continues to grow at a robust pace, with annual GDP growth of 6.7 per cent in 2018. However, over the last number of months uncertainty in the external environment has increased substantially. The pace of growth has slowed in Ireland's key export markets, with a loss of momentum particularly evident in both the euro area and the UK. Accordingly the Department of Finance has revised down its forecast, relative to Budget 2019, for GDP by a quarter of a percentage point this year and next.
As published in the Stability Programme Update for 2019, my Department is forecasting GDP growth of 3.9 per cent this year and 3.3 per cent next year. Over the medium term, GDP is expected to at around 2 1/2 per cent, with positive contributions from both net exports and domestic demand.
As regards Brexit, the Department’s projections assume that a transition period will be agreed that extends or replicates existing frameworks until end-2020, i.e. the UK is assumed to remain in the single market and customs union during this period. From 2021 onwards, the baseline forecasts assume that the EU and UK conclude a trade agreement. This form of agreement results in any lower level of GDP over the 2021-2023 period relative to a hypothetical no-Brexit baseline scenario.
Despite the relatively positive outlook for our economy, the risks over the coming years are numerous and primarily external in nature. First and foremost is the ongoing uncertainty around Brexit. Secondly, given Ireland’s position as a small open economy with a high degree of integration in global value chains, any further disruption to trade or a slowdown in global growth would have a disproportionate impact on the Irish economy. Over the medium term, the principal risks relate to potential overheating as the economy approaches full-employment.
The best way we can mitigate against these risks is through prudent budgetary policy, careful management of the public finances and by focusing on competitiveness-oriented policies.
103. Deputy Lisa Chambers asked the Minister for Public Expenditure and Reform his plans for a site (details supplied); when it will be operational; and if he will make a statement on the matter. [17904/19]
Amharc ar fhreagraBunadober Mill (also known as Moran's Mill) is a National Monument in State care since 1996 and responsibility for its maintenance and protection falls to the Office of Public Works. The Mill is a surviving example of vernacular rural industrial heritage which contains a particularly notable horizontal mill wheel and other historically-important mill machinery.
The strategic aim is to conserve and protect the mill complex in its current form and to allow for the future presentation of the site to the visiting public. To this end, the OPW has been undertaking a careful conservation project at the site to address a number of issues sequentially:
- To ensure that the fabric of the building is secure and structurally sound;
- To carry out a wildlife assessment (Bat Survey);
- To record all surviving elements of the Mill structure and its loose and fixed contents (both in traditional record and laser survey), to carry out an inventory of them and to take these elements into safe storage if possible;
- To carry out essential works to the horizontal wheel to rectify the effects of a significant earlier structural collapse, to assess the condition of various working elements and to repair them;
- To develop a strategy for managed public access and presentation of the Mill Complex;
- To rehabilitate the Mill pond
Following the completion of the first major phase of work in the period leading up to 2014/15, the buildings and contents are now secure. In 2015, OPW commissioned an external conservation expert to complete an agreed Conservation and Management Plan for the site which will inform the next steps to be taken towards the ultimate presentation of the site to visitors. Remaining elements of this work will be addressed on a progressive basis as and when resources permit. It is not possible at this time to say exactly when the site will be open to the public.
104. Deputy Niamh Smyth asked the Minister for Public Expenditure and Reform the number of the buildings in which Garda stations were formally located in counties Cavan and Monaghan which have been sold; and if he will make a statement on the matter. [17945/19]
Amharc ar fhreagraI have been advised by the Commissioners of Public Works that two former Garda Station buildings in County Cavan have been sold. These are Finea and Tullyvin.
No former Garda stations in County Monaghan have been sold.
The former Garda station at Shantonagh, Co. Monaghan was a leased property and this lease was surrendered following the closure of the station.
The following table sets out the position with the remaining former Garda stations that remain in State ownership.
|
Former Garda Station |
County |
Closed |
Status |
|
Bawnboy |
Cavan |
2013 |
Reopening as part of the Programme for a Partnership Government |
|
Redmills |
Cavan |
2013 |
Future use under consideration |
|
Stradone (New) * |
Cavan |
2013 |
Refurbished and extended. Currently in use by An Garda Síochána. |
|
Clontibret |
Monaghan |
2012 |
Future use under consideration |
|
Corrinshigagh |
Monaghan |
2013 |
Future use under consideration |
|
Newbliss |
Monaghan |
2013 |
Future use under consideration |
|
Smithborough |
Monaghan |
2012 |
Future use under consideration |
* The old Garda station at Stradone, Co. Cavan closed in 2002. This property is surplus to requirements and is being prepared for disposal.
105. Deputy Billy Kelleher asked the Minister for Public Expenditure and Reform the annual cost in 2017 and 2018 of hosting a website (details supplied); and the breakdown of all associated information and communications technology and staff costs in tabular form. [17972/19]
Amharc ar fhreagraMy Department has developed the gov.ie website which is a key tenant of the Public Service ICT strategy under Digital First. The objective of gov.ie is the creation of a shared website for all Departments, presenting content in an accessible manner for ease of online interaction for citizens and businesses. It will provide easy-to-find information about government services and will improve on separate department websites which have different designs, navigation, writing styles and isolated services. It will involve a significant improvement in how Government delivers access to its information and services online, focusing more on the user of the services rather than the providers of those services. Development of the site started in 2017 and activity increased in 2018 as the Public Consultations portal was incorporated. Three departmental websites have been added in 2019 so far. The gov.ie site was originally hosted exclusively by a company called Linode but we now also use Amazon Web Services (AWS). The cost associated with hosting gov.ie in 2017, including VAT, was €588.96. In 2018, as activity was substantially increased and considerably more resilience and services added, the cost was €5,414.97, also including VAT.
|
Company |
2017 |
2018 |
|
Amazon AWS |
€0 |
€3,749.14 |
|
Linode |
€588.96 |
€1,665.83 |
|
Total |
€588.96 |
€5,414.97 |
106. Deputy Kevin O'Keeffe asked the Minister for Public Expenditure and Reform if a survey undertaken by the Office of Public Works in County Cork in October 2018 will be provided to a person (details supplied). [18012/19]
Amharc ar fhreagraThe site inspection carried out by the Office of Public Works (OPW) in conjunction with Cork County Council at the home of the person named by the Deputy is part of the application process under the Voluntary Homeowners Relocation Scheme. The Relocation Committee has considered the site inspection report of the homeowner in question.
The Commissioners of Public Works in Ireland are expected to make a decision on a number of applications under the Scheme in the coming weeks, following which the Commissioners will make contact with the person named.
107. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the updated position on the restorative elements of FEMPI; and if he will make a statement on the matter. [18038/19]
Amharc ar fhreagra109. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which public sector pay restoration has been achieved and or is pending; and if he will make a statement on the matter. [18275/19]
Amharc ar fhreagraI propose to take Questions Nos. 107 and 109 together.
I refer the Deputy to my reply to PQ 6225 of 7 February 2019. The position remains unchanged.
The process of dismantling the Financial Emergency legislation commenced under the Lansdowne Road Agreement 2016-2018 and will be completed under the Public Service Stability Agreement 2018-2020 (PSSA).
The PSSA, which was negotiated in 2017, and the provisions of which were statutorily provided for under the terms of the Public Service Pay and Pensions Act 2017, allows for a continued, controlled unwinding of the financial emergency (FEMPI) legislation. The unwinding process is progressively weighted towards those at the lower levels of pay (who will see their salaries increase relative to 2008), and is implemented on a phased basis.
By end 2019 salary rates up to €50,000 will be fully restored. By end 2020 salary rates up to €70,000 (over 90% of the public service) will be fully restored.
For public servants who have not achieved full restoration of the FEMPI cuts by October 2020 (i.e. the date of the last PSSA increase), restoration of the amount must be completed by way of Ministerial order. This order must be made on the following dates:
For those with a post-PSSA salary of under €150,000:
- Covered public servants: a date after 1 October 2020 but before 1 July 2021.
- Non-covered public servants: on 1 July 2021.
For those with a post-PSSA salary in excess of €150,000:
- Covered public servants: a date after 1 October 2020 but before 1 July 2022.
- Non-covered public servants: a date after 1 July 2021 but before 1 July 2022.
108. Deputy Caoimhghín Ó Caoláin asked the Minister for Public Expenditure and Reform the progress towards the reopening of the Garda station in Bawnboy, County Cavan; the works involved; the projected cost; the timeframe to completion; and if he will make a statement on the matter. [17958/19]
Amharc ar fhreagraThe Office of Public Works has been requested by An Garda Síochána to progress the reopening of six former Garda Stations including the Station at Bawnboy, Co. Cavan. A brief of requirements for this Station was obtained from An Garda Síochána and a full technical assessment completed. The deliberative process between An Garda Síochána and OPW to finalise proposals for the re-opening is continuing. Upon final 'sign-off' by An Garda Síochána, OPW will submit the necessary Part 9 planning application and progress the procurement of works required to re-open the Station which, it is expected, will take place this year.
110. Deputy Lisa Chambers asked the Minister for Public Expenditure and Reform the amount spent on a site (details supplied) in tabular form; and if he will make a statement on the matter. [17908/19]
Amharc ar fhreagraBunnadobber (Moran's Mill) is a National Monument in the care of the Office of Public Works. The following table gives details of expenditure for the last three years. The bulk of this expenditure relates to pest control, electricity and pay costs. General maintenance at the site is undertaken by the OPW direct labour force working from the Athenry National Monuments Depot.
Bunnadober Morans Mill
|
Year End 2019 |
2018 |
2017 |
2016 |
|
Total |
12,669 |
10,487 |
27,297 |
