Written Answers Nos. 231-245
232. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he can encourage the existing Irish banks to assist mortgage holders who may have had to resort to fund operators in respect of mortgages; and if he will make a statement on the matter. [21782/23]
View answer233. Deputy Bernard J. Durkan asked the Minister for Finance if he will outline the prospects for mortgage relief to mortgage holders who are in debt to fund operators; if any study has been carried out as to the possibility of reducing mortgage repayments; and if he will make a statement on the matter. [21783/23]
View answerI propose to take Questions Nos. 232 and 233 together.
The formulation and implementation of monetary policy is an independent matter for the European Central Bank (ECB). As the Deputy is aware, the ECB has increased official interest rates over recent months as it attempts to combat inflation.
The level of official interest rates will influence the overall level of interest rates throughout the economy. However, the setting of retail lending rates by individual lenders is a commercial matter for that lender and I have no function or role in such decision making matters by financial institutions.
Research has indicated that there is potential for existing mortgage holders to make mortgage savings by switching their mortgage. This is a particularly important consideration at a time of rising interest rates.
I have met with the CEOs of the retail banks and a number of non-bank lenders where I emphasised that they should take a consumer focused approach to encourage switching where possible. I have also asked the Banking and Payments Federation to develop a campaign to ensure consumers are aware of the supports available. The Competition and Consumer Protection Commission (CCPC) and Money Advice and Budgeting Service (MABS) also play an important role in informing consumers about the options available to them.
It is a priority for me to ensure that the regulatory framework supports borrowers in the mortgage switching process. In the context of the review of the Consumer Protection Code, I have indicated that the Central Bank should review the existing regulatory provisions and consider whether more dedicated mortgage switching resources, such as a standalone mortgage switching code, could better encourage and facilitate switching in the mortgage market.
In that context and the rise in the cost of living more generally, the Central Bank wrote to all regulated firms last November to set out its expectations on how regulated firms should support their customers.
The Central Bank is scrutinizing the switching and lending activity of the retail banks to ensure there is no discrimination based on who a borrower's current creditor is and it has confirmed that the work identified no evidence to date of such discrimination.
With respect to mortgages, the Central Bank indicated that it is especially focused at this time on ensuring that firms:• have the resources and arrangements in place to assess applications from existing and new or switching borrowers in a manner that is timely and based on prudent lending standards applied consistently across all applicants;
• have fit-for-purpose arrangements in place to anticipate and deal with customers in or facing arrears; and
• proactively assess the risks and consumer impact that commercial decisions, including rising interest rates, may pose to borrowers and have an action plan in place to mitigate such risks. Last month the Central Bank published a note on the ongoing work to ensure regulated firms meet the expectations on protecting consumers in a changing economic landscape, relating to mortgages secured on a borrower’s primary residence.
The Central Bank has indicated that firms have responded with additional supports for borrowers and increased operational capacity. This has included proactive contact with vulnerable borrowers including those at greatest risk of default, and continued provision of supports, including alternative repayment arrangements, to borrowers at risk of arrears. The Central Bank will continue to engage with firms on areas where consumers can be better supported at this difficult time.
In relation to mortgage relief, I do not believe that the reintroduction of mortgage interest relief at this time is the appropriate course of action and in the best interests of all mortgage holders and the State in general given the potential Exchequer implications and the current high inflationary environment.
234. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which this country's economy continues to compete with all others within and outside the eurozone; and if he will make a statement on the matter. [21784/23]
View answer235. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which this country's economy remains competitive with other traders throughout Europe, the eurozone and globally; and if he will make a statement on the matter. [21785/23]
View answerI propose to take Questions Nos. 234 and 235 together.
International data suggests that the outlook for the global economy may not be as pessimistic as had been thought at the end of last year. Resilient labour markets, an earlier than anticipated easing in headline inflation and effective government supports for firms and households have mitigated against some of the worst effects of multi-decade high inflation seen across most advanced economies. Nonetheless, it is clear that we are not out of the woods yet. Significant risks remain around geopolitical tensions and the stability of the financial sector, which my Department will continue to monitor.
Against the backdrop of a marginally improved global outlook combined with a resilient domestic economy, my Department revised upwards its growth forecasts for this year in the spring forecasts published in the Stability Programme Update last month. Indeed, the resilience of the domestic economy can be seen in an unemployment rate of just 3.9 per cent in April, with almost 2.6 million in employment - a record high. The easing of domestic headline inflation from 9.6 per cent in June to 6.3 per cent in April will act to boost consumption and investment, though core inflation (excluding energy) is projected to remain elevated at 4.4 over the course of the year.
My Department is now forecasting modified domestic demand (MDD) growth of 2.1 per cent for this year, an upward revision from 1.2 per cent forecast at the time of the autumn forecasts. MDD growth of 2½ per cent is projected for 2024. This level of growth compares relatively favourably to our European and global peers. In the recently published World Economic Outlook, the IMF forecast economic growth of 0.8 and 1.4 per cent for the Euro area for this year and next, with a projected contraction in the UK economy of -0.3 per cent this year, before returning to positive growth of 1 per cent next year. The US economy is projected to grow by 1.6 per cent this year and by 1.1 per cent in 2024.
236. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he can continue to support sectors currently making a major contribution to the economy, such as the agrifood business, given the urgent need to ensure continuity of supply in the future and economic independence; and if he will make a statement on the matter. [21786/23]
View answerSmall and medium size businesses (SMEs) play a pivotal role in our domestic economy supporting thousands of jobs each year. Labour intensive sectors, such as the agri-food sector, have helped drive down the unemployment rate to just 3.9 per cent in April, the lowest monthly unemployment rate since 2001.
Over the past year, Ireland along with almost all other advanced economies, has had to grapple with the effects of multi-decade high inflation. What started as an energy price shock, quickly spread to non-energy goods and services, creating broad based inflationary pressure. This has raised the everyday cost of doing business for many SMEs at a time when many businesses have had to contend with tightening financing conditions. Since last summer, the ECB has increased interest rates by 3¾ percentage points. Although necessary to avoid inflationary pressures becoming entrenched, this has raised debt service costs for both households and SMEs.
In recognition of the need to support our SMEs during these challenging times, Budget 2023 introduced a Temporary Business Energy Support Scheme (TBESS) to assist businesses with their energy costs. In February, a further package of cost of living supports was announced, which included an expansion of the eligibility criteria and application period for the TBESS scheme. In addition the Government announced an extension of the reduced rate of VAT on tourism and hospitality to end-August. By providing these supports the Government is ensuring that we can maintain a vibrant and sustainable SME sector in Ireland.
My Department will continue to closely monitor inflationary developments over the coming months and will ensure that the correct steps are taken to manage the ever-evolving situation.
237. Deputy Sorca Clarke asked the Minister for Finance the measures his Department will take to support struggling mortgage holders, considering the ECB increased its interest rates again on 4 May 2023; and if he will make a statement on the matter. [21871/23]
View answerThe formulation and implementation of monetary policy is an independent matter for the European Central Bank (ECB). As the Deputy is aware, the ECB has increased official interest rates over recent months as it attempts to combat inflation. The level of official interest rates influences the overall level of interest rates throughout the economy. However, the setting of retail lending rates by individual lenders is a commercial matter for that lender and I have no function or role in such decision making matters by financial institutions.
In line with the changing interest rate environment and other relevant factors, individual lenders are considering and adjusting their new lending rates. Nevertheless, it is worth noting that, on an overall level, the increase in weighted average interest rate on new Irish mortgage agreements has not been as large as it has been in some other countries. At end-February 2023 the average rate on new mortgages was 2.92% and it is now among the lowest in the euro area.
Also it should be noted that the structure of the Irish mortgage market is changing and that there is an increase in the take up of fixed rate mortgages - in February 2023 for example 93% of new mortgages were at a fixed interest rate - and this protects borrowers from interest rate changes for the period that the interest rate is fixed. As regulator, last November the Central Bank wrote to to all regulated firms to set its expectations on how firms should support their customers in the face of current cost of living challenges. With respect to mortgages, the Bank indicated that it is especially focused at this time on ensuring that firms:
• have the resources and arrangements in place to assess applications from existing and new or switching borrowers in a manner that is timely and based on prudent lending standards applied consistently across all applicants;• have fit-for-purpose arrangements in place to anticipate and deal with customers in or facing arrears; and• proactively assess the risks and consumer impact that commercial decisions, including rising interest rates, may pose to borrowers and have an action plan in place to mitigate such risks. Last month the Central Bank published a note on the ongoing work to ensure regulated firms meet the expectations on protecting consumers in a changing economic landscape, relating to mortgages secured on a borrower’s primary residence.
The Central Bank has indicated that firms have responded with additional supports for borrowers and increased operational capacity. This has included proactive contact with vulnerable borrowers including those at greatest risk of default, and continued provision of supports, including alternative repayment arrangements, to borrowers at risk of arrears.
The Central Bank will continue to engage with firms on areas where consumers can be better supported at this difficult time.
There are also a number of important consumer protections for variable rate mortgage holders to highlight. Firstly the Consumer Protection Code requires lenders to explain to borrowers how their non tracker variable interest rates have been set and to clearly identify the factors which may result in changes to variable interest rates.
Secondly, it also increases the level of information lenders are required to provide their customers including where there is a possibility for the borrower to move to a lower ‘loan to value’ interest rate band and signpost the borrower to the Competition and Consumer Protection Commission's mortgage switching tool.
However, it is the case that some borrowers will experience repayment difficulty on a mortgage secured on a primary residence and the Code of Conduct on Mortgage Arrears (CCMA) was introduced to ensure that regulated entities have fair and transparent processes in place for dealing with such cases.
The CCMA sets out the process that entities must follow when a borrower is in or facing difficulties with their mortgage payments and it states that all arrears cases must be handled sympathetically and positively by the regulated entity, with the objective at all times of assisting the borrower to meet his or her mortgage obligations.
There is an obligation on regulated entities to explore all of the options for alternative repayment arrangements (ARAs) offered by that entity, in order to determine which ARA, if any, is appropriate and sustainable for the borrower’s individual circumstances.
I would also encourage borrowers to engage with their lender to discuss any difficulty that may be arising in relation to a mortgage. Early and on-going engagement has been shown to yield positive results for both borrowers and lenders in addressing a repayment difficulty.
Finally, as the Deputy is aware, the Government has responded swiftly and decisively, multiple times, to help to offset the most severe impacts of inflation, with a particular focus on protecting the most vulnerable.
Overall, €12 billion in direct relief has been made available to counter the effects of inflation, with the policy response designed to avoid generating second round effects that could lead to an inflationary spiral.
238. Deputy Patrick Costello asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide an update on the Magazine Fort, Phoenix Park; and if he will make a statement on the matter. [21068/23]
View answerThe Office of Public Works has developed plans for the restoration of the Magazine Fort, Phoenix Park, and has received the necessary planning permission from Dublin City Council in 2022.
The Office of Public Works has already tendered for Phase 1 of the restoration works i.e. the Structural Stabilisation and Repair Works to the rampart walls, along with some other buildings which have been prioritised for conservation attention. This process will conclude shortly. It is anticipated that The Office of Public Works will appoint a main contractor in the coming weeks and and that works will commence on site during the summer months.
239. Deputy Mary Lou McDonald asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when the HIV and AIDS national monument will be installed in the People's Park. [21069/23]
View answerThe Office of Public Works (OPW) is managing the HIV and AIDS national monument project on behalf of the Department of the Taoiseach, which chairs the Oversight Committee. The OPW project team is currently working on development and delivery of the project with artists Anaisa Franco and Michael R. DiCarlo, whose proposal ‘Embraced Loop’, was selected following a two-stage open competition. It is planned that the monument will be installed this year.
240. Deputy Ciarán Cannon asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if officials from his Department are using an application (details supplied) to conduct business; if his Department has had official meetings regarding the use of the application by officials; if his Department has assessed the risk of using the application by Department officials and the input of Government-related data into the application; if his Department is using or is considering using other forms of artificial intelligence; if his Department is considering banning the use of the application by Department officials; and if he will make a statement on the matter. [21092/23]
View answerOfficials from my Department do not currently use the application to conduct official business. If/when the application’s use is being considered it will be discussed and a risk assessment conducted as appropriate. The Department has employed AI powered security tools as part of its overall security posture. The use of AI, as with all enabling technologies, will be considered on a solution by solution basis. The restrictions on the use of applications are considered as instructions/recommendations are made by appropriate responsible bodies of the State.
241. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when the environmental assessments will be completed in relation to the River Deel flood relief scheme; when he will confirm the scheme; and if he will make a statement on the matter. [21140/23]
View answerDetails of the environmental impact assessments carried out by the OPW in relation to the River Deel Flood Relief Scheme can be found on the floodinfo.ie website. The scheme has been submitted to my Department seeking consent for these works under the provisions of the Arterial Drainage Acts 1945 to 1995 as amended. An initial round of public consultation was held beginning on the 1st December 2020 and concluding on the 11th January 2021. Following this period of public consultation, my Department sought additional information regarding the scheme from the Office of Public Works. The OPW provided this information to my Department in July 2021. A further period of public consultation was then required and this took place over the period from the 6th May 2022 to the 1st July 2022. My Department has retained independent environmental consultants to review the submissions received during the consultation and to carry out any necessary environmental assessments as required by EU Directives 2011/92 and 2014/52. Section 7E(4) of the regulations provides that I have access to sufficient expertise to examine an environmental impact assessment report submitted by OPW. In light of this requirement, independent consultants have been appointed to provide this expertise. My Department has been advised by the independent consultants that this work is due to be completed in the coming weeks. On completion, I expect to receive a recommendation on whether to confirm the scheme in accordance with Section 7E(1) of the Regulations. It is my expectation that I will receive this recommendation in Q2 of this year. Under Section 7E(1) of the Regulations it is open to me to: (a) make an order confirming the scheme, (b) refuse to confirm the scheme, or (c) refer the scheme back to the Commissioners of Public Works for revision in specified respects.
Any decision made under Section 7E(1) will be published on the Department's website as required under Section 7F(1)(a) of the Regulations.
242. Deputy Catherine Murphy asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide a schedule, by Garda station and-or Garda premises. to include the amount derived, in respect of the licences issued to mobile network operators to install telecommunications equipment on telecoms masts; and if he will provide a breakdown by mobile telephone company and amount in each of the years 2019 to date in 2023. [21164/23]
View answerThe Commissioners of Public Works in Ireland (CPW) have issued licences to install telecommunications equipment on masts at Garda Stations to the following companies, all of which are licensed by ComReg to provide services in Ireland.
• Three Ireland (Hutchison) Ltd.
• Three Ireland Services (Hutchison) Ltd. (formerly O2 Ireland Ltd)
• Vodafone Ireland Ltd.
• Meteor Mobile Communications Ltd. (now known as Eir)
• Lighthouse Networks Limited
• Imagine Network Services Limited
• E-Nasc Eireann Teoranta (E-Net)
• Tetra Ireland Ltd - These licences are for the provision of digital radio services to An Garda Síochána and other emergency services and as a result of this a licence fee is not payable.
The attached tables show both the gross income (excluding VAT) received by the State under licences granted by the CPW in respect of mobile telecommunications equipment on Garda Masts for each of the years from 2019 to date in 2023. Table 1 details the licences fees by Garda Station while Table 2 details the total amount paid by each Mobile Network Operator (MNO) for each of the years.
243. Deputy Carol Nolan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will list all reviews of Acts carried out by his Department in line with the provisions of the Act in question from 2000 to date; if a summary will be provided of any substantive amendments of the Act in question that occurred on foot of each review and the amending legislation, if any, in each case; and if he will make a statement on the matter. [21189/23]
View answerThe information requested by the Deputy in respect of reviews of Acts which have been carried out by my Department in line with the provisions of that Act since the Department was established in 2011 is set out in the table below.
|
Reviews of Acts carried out in line with the provisions of the Act since 2011 |
Summary of any substantive amendments of the Act that occurred on foot of each review |
Amending legislation, if applicable |
|
Statutory Review of the Protected Disclosures Act 2014 (published 2018) |
Expansion of material scope of the Act to add volunteers, board members, shareholders and job applicants. Obligation on all private sector organisations with 50 or more employees to establish formal whistleblowing channels (this obligation already existed in the public sector). Requirement on all internal and external recipients of protected disclosures to acknowledge and follow-up on all disclosures and give feedback to the reporting person. Establishment of the Office of the Protected Disclosures Commissioner to act as external recipient of last resort and to handle disclosures made to Ministers of the Government. Reversal of the burden of proof in civil claims of victimisation for having made a protected disclosure and expansion of the interim reliefs available. |
Protected Disclosures (Amendment) Act 2022. |
|
June 2011 - Annual review of the operation and effectiveness of the Financial Emergency Measures in Public Interest Act 2009 under section 13 of the Act. |
n/a |
n/a |
|
June 2011 - Annual review of the operation and effectiveness of the Financial Emergency Measures in Public Interest (No. 2 Act) 2009 under section 7 of the Act. |
n/a |
n/a |
|
June 2012 - Annual Review of the operation and effectiveness of the Financial Emergency Measures in the Public Interest (No. 2) Act under section 7 of the Act. |
n/a |
n/a |
|
June 2012 - Annual review of the operation and effectiveness Financial Emergency Measures in Public Interest Act 2009 under section 13 of the Act. |
n/a |
n/a |
|
June 2012 - Annual Review of the operation and effectiveness of the Financial Emergency Measures in the Public Interest (FEMPI) legislation under section 10 of the 2010 Act. |
n/a |
n/a |
|
June 2013 to 2022 inclusive - Annual Reviews of the operation and effectiveness of the Financial Emergency Measures in the Public Interest legislation under section 12 of the 2013 Act. |
n/a |
n/a |
The Freedom of Information Act 2014 and the Ombudsman Acts 1980 to 2012 do not mandate periodic reviews. The Deputy may be aware that a review of the FOI legislation is currently in progress. However, this is undertaken pursuant to section 10(1)(d) of the Ministers and Secretaries Act 2011, rather than under the terms of the 2014 Act itself. No other reviews have been undertaken by the Department in relation to these two provisions since the commencement of the 2014 Act and the amendment to the Ombudsman Act in 2012.
244. Deputy Jim O'Callaghan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide an update on the status of the Civil Service Regulation (Amendment) Bill 2018. [21225/23]
View answerAs the Deputy may be aware, on 11 April 2018 the Government agreed the General Scheme and Heads of Bill to amend the Civil Service Regulation Acts 1956-2005 and the Public Service Management Act, 1997. Pre-legislative scrutiny was held on 28 June 2018. The policy intention of this Bill remains as was approved in 2018.
The main purpose is to amend the Civil Service Regulation Acts 1956–2005 and the Public Service Management Act, 1997 to provide that disciplinary action up to and including dismissal in the Civil Service can be assigned below the level of the head of the organisation (known as the Appropriate Authority) and other miscellaneous amendments to modernise the legislation based on the General Scheme of the Bill. The legislative amendments are intended to be enabling rather than prescriptive in relation to the assignment of the disciplinary function.
The drafting of the legislation is significantly advanced. My officials continue to work on the detailed policy considerations associated with the drafting, and these must be worked through before the draft Bill can be approved. The Bill is on the list of priority legislation for publication in the current session.
245. Deputy Cian O'Callaghan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when payment arrears arising from the implementation of the 3% pay increase awarded from 2 February 2022 under the revised Building Momentum pay deal will be paid to staff members who retired in the second half of 2022 (details supplied); and if he will make a statement on the matter. [21259/23]
View answerI refer to the Deputy’s question regarding pension increases in relation to retired civil servants outstanding under the Building Momentum Agreement. I am advised by the NSSO that it is currently working to deliver the pension increases for our pensioners.
This task is complex due to the period of retrospection applying and the broad range of categories where arrears are due. Certain elements of the work process have been completed. However, prior to making any payments the NSSO is carrying out a comprehensive validation of the arrears values to ensure that the arrears paid to individuals are correct. Unfortunately, this means that the timeline for making these payments will be beyond end of quarter one, 2023. While it is not feasible to provide specific dates at this point, we can assure you that every effort is being made to process these payments as soon as possible.
