Dáil Éireann

Tá
Adams, Gerry.	Boyd Barrett, Richard.
Calleary, Dara.	Collins, Joan.
Collins, Niall.	Colreavy, Michael.
Cowen, Barry.	Crowe, Seán.
Daly, Clare.	Donnelly, Stephen S.
Dooley, Timmy.	Ellis, Dessie.
Ferris, Martin.	Flanagan, Luke ‘Ming’.
Fleming, Sean.	Fleming, Tom.
Halligan, John.	Healy, Seamus.
Healy-Rae, Michael.	Higgins, Joe.
Kelleher, Billy.	Kirk, Seamus.
Kitt, Michael P.	Mac Lochlainn, Pádraig.
Martin, Micheál.	McConalogue, Charlie.
McGrath, Finian.	McGrath, Mattie.
McGuinness, John.	McLellan, Sandra.
Moynihan, Michael.	Murphy, Catherine.
Ó Caoláin, Caoimhghín.	Ó Cuív, Éamon.
Ó Fearghaíl, Seán.	Ó Snodaigh, Aengus.
O’Brien, Jonathan.	O’Sullivan, Maureen.
Pringle, Thomas.	Ross, Shane.
Smith, Brendan.	Stanley, Brian.
Tóibín, Peadar.	Troy, Robert.
Wallace, Mick.

Níl
Bannon, James.	Barry, Tom.
Breen, Pat.	Broughan, Thomas P.
Bruton, Richard.	Burton, Joan.
Butler, Ray.	Buttimer, Jerry.
Byrne, Catherine.	Byrne, Eric.
Carey, Joe.	Coffey, Paudie.
Collins, Áine.	Conaghan, Michael.
Conlan, Seán.	Connaughton, Paul J.
Conway, Ciara.	Coonan, Noel.
Corcoran Kennedy, Marcella.	Costello, Joe.
Coveney, Simon.	Creed, Michael.
Daly, Jim.	Deasy, John.
Deenihan, Jimmy.	Deering, Pat.
Doherty, Regina.	Donohoe, Paschal.
Dowds, Robert.	Doyle, Andrew.
Durkan, Bernard J.	English, Damien.
Farrell, Alan.	Feighan, Frank.
Ferris, Anne.	Fitzgerald, Frances.
Fitzpatrick, Peter.	Flanagan, Charles.
Flanagan, Terence.	Gilmore, Eamon.
Griffin, Brendan.	Hannigan, Dominic.
Harrington, Noel.	Harris, Simon.
Hayes, Brian.	Hayes, Tom.
Heydon, Martin.	Howlin, Brendan.
Humphreys, Heather.	Humphreys, Kevin.
Keating, Derek.	Keaveney, Colm.
Kehoe, Paul.	Kelly, Alan.
Kenny, Enda.	Kenny, Seán.
Kyne, Seán.	Lawlor, Anthony.
Lynch, Ciarán.	Lyons, John.
McCarthy, Michael.	McEntee, Shane.
McFadden, Nicky.	McGinley, Dinny.
McHugh, Joe.	McLoughlin, Tony.
McNamara, Michael.	Maloney, Eamonn.
Mathews, Peter.	Mitchell, Olivia.
Mitchell O’Connor, Mary.	Mulherin, Michelle.
Murphy, Dara.	Murphy, Eoghan.
Nash, Gerald.	Naughten, Denis.
Neville, Dan.	Nolan, Derek.
Nulty, Patrick.	Ó Ríordáin, Aodhán.
O’Donnell, Kieran.	O’Donovan, Patrick.
O’Mahony, John.	O’Reilly, Joe.
O’Sullivan, Jan.	Penrose, Willie.
Phelan, Ann.	Phelan, John Paul.
Quinn, Ruairí.	Rabbitte, Pat.
Reilly, James.	Ring, Michael.
Ryan, Brendan.	Shatter, Alan.
Sherlock, Sean.	Shortall, Róisín.
Spring, Arthur.	Stagg, Emmet.
Stanton, David.	Timmins, Billy.
Tuffy, Joanna.	Twomey, Liam.
Wall, Jack.	Walsh, Brian.
White, Alex.

Tellers: Tá, Deputies Catherine Murphy and Seán Ó Fearghaíl; Níl, Deputies Emmet Stagg and Paul Kehoe.

Faisnéigeadh go rabhthas tar eis diúltú don cheist.

Question declared lost.

Minister of State at the Department of the Taoiseach (Deputy Paul Kehoe): I move:

That the proposal that Dáil Éireann, noting that the Government on 1st December, 2011 nominated Mr. Simon O’Brien, Mr. Kieran Fitzgerald and Ms Carmel Foley for appointment by the President to be members of the Garda Síochána Ombudsman Commission and Mr. Simon O’Brien to be its chairperson, recommends, pursuant to section 65(1)(b) of the Garda Síochána Act 2005, that Mr. Simon O’Brien and Mr. Kieran Fitzgerald be appointed and that Ms Carmel Foley be reappointed by the President to be members, and Mr. Simon O’Brien to be chairperson, of the Commission, be referred to the Joint Committee on Justice, Defence and Equality, in accordance with Standing Order 82A(4)(j), which, not later than 9th December, 2011, shall send a message to the Dáil in the manner prescribed in Standing Order 87, and Standing Order 86(2) shall accordingly apply.

Question put and agreed to.

Minister of State at the Department of the Taoiseach (Deputy Paul Kehoe): I move:

That the proposal that Dáil Éireann approves the following Orders in draft:

(i) Double Taxation Relief (Taxes on Income and Capital) (Federal Republic of Germany) Order 2011,

(ii) Double Taxation Relief (Taxes on Income) (Kingdom of Saudi Arabia) Order 2011,

(iii) Double Taxation Relief (Taxes on Income and on Capital) (Republic of Armenia) Order 2011,

[854]

(iv) Exchange of Information relating to Tax Matters (The Republic of Vanuatu) Order 2011,

(v) Exchange of Information Relating to Tax Matters (Grenada) Order 2011, and

(vi) Double Taxation Relief (Taxes on Income and Capital Gains) (Republic of Panama) Order 2011,

copies of which were laid before Dáil Éireann on 25th November, 2011 and 30th November, 2011, be referred to the Select sub-Committee on Finance, in accordance with Standing Order 82A(3)(b) and (6)(a), which, not later than 16th December, 2011, shall send a message to the Dáil in the manner prescribed in Standing Order 87, and Standing Order 86(2) shall accordingly apply.

Question put and agreed to.

Minister for Health (Deputy James Reilly): I move:

That leave be given by the Dáil to introduce the following Supplementary Estimate for the service of the year ending on the 31st day of December, 2011:

Vote 40 — Health Service Executive (Supplementary Estimate).

Question put and agreed to.

Minister for Health (Deputy James Reilly): I move:

That, subject to leave being given to introduce the following Supplementary Estimate for the service of the year ending on 31st December, 2011, the Supplementary Estimate be referred to the Select Sub-Committee on Health, pursuant to Standing Orders 82A(3)(c) and (6)(a) and 159(3), which shall report back to the Dáil by no later than 8th December:

Vote 40 — Health Service Executive (Supplementary Estimate).”

Question put and agreed to.

Sitting suspended at 3.15 p.m. and resumed at 3.45 p.m.

Minister for Finance (Deputy Michael Noonan): Some minor amendments were made to the published draft of the speech so I will circulate a new copy to Members of the House, in the interests of being exact.

On this day 90 years ago, 6 December 1921, the Treaty was signed. The Treaty restored Ireland’s sovereignty which for so long had been lost. In the last days of the Treaty negotiations, the British conceded fiscal autonomy to Ireland. This, as Dick Mulcahy said, “Gave Ireland back her purse”.

[855]I am afraid the Fianna Fáil-Green Party Government gave the purse away again this time last year as fiscal autonomy was conceded to the IMF and the European authorities. After a decade of disastrous decisions the building bubble burst and a Government which was riven with dissension could no longer find anyone to lend money to it, so it was forced to turn to the IMF and the European authorities to provide funding.

The people of Ireland have paid a very high price for this mismanagement of the economy. Personal wealth has been destroyed, thousands of people are sinking into poverty, emigration has returned and unemployment is far too high. The task of this Government is to regain control over Ireland’s fiscal and economic policies, to grow the economy again and to get people back to work. Those that have lost their jobs and young people who cannot get jobs have suffered most. The primary purpose of this budget is to support the creation of jobs in the short term, the medium term and the long term.

On 25 February 2011, the Irish people spoke and delivered a resounding mandate to Fine Gael and Labour. The mandate is to set the economy back on the road to recovery and to get people back to work. The new Government has made a strong start. We have restored political stability and have successfully renegotiated many of the conditions of the EU-IMF programme. We have restored Ireland’s reputation abroad, a reputation which was so severely damaged by the last Government. We have restored Ireland’s international credibility and all serious international commentators now believe that Ireland’s longer term position is sustainable and that with prudent management over the next four years we will get over our difficulties.

As a small country with an open economy, the crisis in the eurozone has a profound effect on our economic prospects. We are committed to playing a full part in resolving this crisis, so that the benefit of the common currency will continue for Ireland.

In spite of uncertainty, a gradual recovery has begun to take hold. Next year, the Department of Finance is forecasting an increase of 1.3% in the volume of GDP with around a 2.5% increase in nominal GDP, which is the primary driver for revenue growth. All forecasters agree that growth will be significantly stronger in 2013 and subsequent years. This growth is driven by the exporting sector, both international and indigenous.

Promoting International Trade

Much of Ireland’s growth at present can be attributed to the attractiveness of Ireland for inward investment. The corporate tax rate of 12.5% and our place in Europe are central to this. We made a commitment in the programme for Government to maintain the 12.5% rate and we will do so.

Deputy Joe Higgins: Hit the workers instead.

Deputy Michael Noonan: The Government has successfully protected this rate even under international pressure, given our fiscal state. The Government successfully negotiated a reduction of €10 billion in the interest rate margin that was far bigger than originally offered and the Taoiseach made no concession on the corporate tax rate in the course of those negotiations.

Today, I want to say to our friends in the multinational sector who continue to invest so strongly in Ireland and Europe, there will be no change in Ireland’s 12.5% corporate tax rate.

Deputies: Hear, hear.

Deputy Michael Noonan: We promised this in the programme for Government and we will fulfil this commitment.

[856]Deputy Timmy Dooley: We will see how long that lasts.

Deputy Joe Higgins: Hit the disabled instead.

Deputy Michael Noonan: While the package of attractions for inward investment has been very successful, I believe with some adjustments more jobs can be created. As part of that strategy, I will introduce a special assignee relief programme. This will allow multinational and indigenous companies to attract key people to Ireland so as to create more jobs and to facilitate the development and expansion of businesses in Ireland.

After consultation with the Tánaiste, Deputy Eamon Gilmore, I am also introducing a foreign earnings deduction to further support our export drive by aiding companies seeking to expand into emerging markets. This targeted deduction will apply where an individual spends 60 days a year developing markets for Ireland in Brazil, Russia, India, China or South Africa, the so called, BRICS countries. I will be giving details of these and additional measures in the Finance Bill.

The international financial services industry in Ireland has been one of the great export success stories of the last 20 years. The sector employs more than 30,000 people and contributes over €1 billion in tax to the Exchequer. However, financial services are highly mobile and we must compete within a global market to ensure that the sector in Ireland continues to grow. Our commitment to the sector has been re-affirmed in the five year strategy for the industry which was launched by the Taoiseach in July this year. I intend to introduce a package of measures in the Finance Bill to support the continued success of the international funds industry, the corporate treasury sector, the international insurance industry and the aircraft leasing industry.

Indigenous Industry

Export growth from the multinational sector is not sufficient to drive the full economic recovery we are seeking. The domestic sector will be the real engine for job creation across the country. Already, indigenous companies in certain sectors are expanding and growing their operations. The Government will support and enhance their efforts through targeted measures for the SME sector.

4 o’clock

In addition to the loan guarantee fund and micro-finance fund announced by the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, I am announcing that the first €100,000 of research and development expenditure of all companies will be allowed on a volume basis for the purpose of the research and development tax credit; the outsourcing arrangements for research and development purposes will be improved in a targeted manner to allow the greater of the existing percentage arrangement or €100,000; companies will have the option to use some portion of the research and development credit to reward key employees who have been involved in the development of research and development; the corporate tax exemption for new start-up companies is being extended for the next three years and will be available for companies that commence trading in 2012, 2013 and 2014; and as already announced, smaller companies will also be able to avail of the planned foreign earnings deduction where they plan to expand their export markets into the BRICS countries. I believe that these targeted measures will provide a stimulus for SMEs as they seek to develop, grow and expand their markets.

Deputies will also be aware that the employment and investment incentive is in operation since 25 November last. This incentive assists in raising risk capital for firms operating in more sectors of the economy than was previously allowed under the business expansion scheme. Other job creation measures will also be examined with a view to their inclusion in the Finance Bill.

[857]Agrifood Industry

Active, energetic and profitable farming is fundamental to the agrifood sector. Irish food is now a world brand leader, and when milk quotas end in 2015 and as food prices are maintained or increased, we want Irish farmers to produce more to supply the emerging markets, where there is significant and growing demand for Irish food.

The food industry must be supported by efficient and progressive primary producers. I wish to encourage the transfer of farms to the next generation of farmers. Many young people from farming families were attracted off the land by the rewards of the building industry, but they are now returning to the family farm. The agricultural colleges are full and many young men and women now see their future in farming.

Later in my speech I will be announcing significant reductions in the rate of stamp duty on the transfer of commercial property. The new rate will also apply to farmland and the present relief for transfers to close relatives will continue to apply.

Deputy James Bannon: Hear, hear.

Deputy Michael Noonan: I am also modifying retirement relief from capital gains tax so that it better incentivises the timely transfers of farms and businesses before the current owners reach the age of 66. The approach is in keeping with the policy of my colleague the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, of encouraging timely transfer of farm assets and improving the age profile of farming. Full details of these measures will be in the Finance Bill.

There is a growing acceptance that greater use of the farm partnership model can not only help to increase scale, but can also help to develop the sector’s skill set through attracting more new entrants to the sector. To encourage farm partnership formation, I am introducing an enhanced 50% stock relief for all registered farm partnerships and a 100% stock relief for certain young trained farmers forming such partnerships. Subject to clearance with the European Commission under state aid rules, these reliefs will be made available until December 2015.

Tourism

The creation of a second reduced rate of VAT of 9% and halving the rate of employer’s PRSI on jobs with earnings up to €356 per week in the jobs initiative has boosted tourism and stimulated employment. The 9% rate of VAT will also apply to open farms which otherwise would be subject to a higher rate.

It is interesting to note, that the latest live register figures show that 125,000 people leftthe live register to take up employment this year up to the end of October. This shows how fluid the labour market is and also the difficulty with attempting to assign the creation of new jobs to specific initiatives. However, the tourism and hospitality industry believe that the jobs initiative has been very effective in generating additional business.

The Government was disappointed earlier this year when Aer Lingus and Ryanair were unwilling to provide additional flights to Ireland in exchange for the abolition of the air travel tax. This offer is still on the table and while the Government appreciates the contribution to the Irish economy being made by the main carriers, we want them to bring additional tourists into the country and we are prepared to negotiate a new mandate.

At the Global Irish Forum held in Dublin Castle earlier this year, it was announced that 2013 would be the year of the gathering, a year long programme of festivals, events and other gatherings designed to encourage the global Irish to visit Ireland in 2013 and to increase tourist [858]numbers by 325,000. A special allocation will be made in the Revised Estimates Volume early in the New Year and it will be launched on St. Patrick’s Day.

All the measures I am announcing for the different sectors of the economy have one objective: to stimulate additional economic growth and to create additional jobs. As well as introducing policies to assist growth, we must also address the constraints on growth. The situation in the property sector at present represents a significant drag on growth throughout the country.

Restoring Property Transactions to More Normal Levels

When the development and construction bubble burst, the consequences were dire. A sector which amounted to around 20% of GDP has been reduced this year to around 5%. A massive hole was made in the Government finances through the loss of stamp duty, VAT, income tax, PRSI and capital gains tax. Even worse, the previous Government neglected the imploding construction sector, which has lost 164,000 jobs since the first half of 2007. We cannot restore all of these jobs and the industry will never go back to 20% of GDP. However, we can create the right conditions for construction employment to return to normal sustainable levels.

The absence of activity in the property market and the decline in house values are having a negative effect on the domestic economy. When the value of family homes is going down, even those with good incomes and without debt, tend to save rather than spend or invest, and consumer sentiment, albeit improving of late, will be affected by this.

All successful economies have a strong construction and development sector and a sustainable property sector. The Government has already announced a multiannual capital budget of €17 billion and I am now announcing the following measures to restore some confidence and to renew activity in the construction, development and property sectors.

The stamp duty rate for commercial property transfers will be reduced from the current top rate of 6% to a flat rate of 2% on all amounts from midnight tonight in respect of all non-residential property, including farmland as well as commercial and industrial buildings. Bringing down the cost of acquiring commercial property will have a positive effect on the property sector and indirectly on jobs in construction and related activities. The current stamp duty arrangements for residential property will continue to apply with 1% on transactions up to and including €1 million and 2% thereafter.

I am also introducing a capital gains tax incentive for property purchased between midnight tonight and the end of 2013. If a property is bought during this period and held for at least seven years, the gain attributable to that seven year holding period will be relieved from capital gains tax.

NAMA Rent Reviews

I am fully aware of the difficulties that upward only rent reviews are causing for some businesses. Despite exhaustive work in recent months by my colleague the Minister for Justice, Equality and Defence, Deputy Alan Shatter, including the preparation of draft legislation, it has not proved possible to develop a targeted scheme to tackle this issue that would not be vulnerable to legal challenge or require compensation to be paid to landlords. I do not believe the Opposition would want us to compensate landlords for any losses in their rent.

This is a matter of particular interest to NAMA which must deal with the problems caused by upward only rent reviews which apply to NAMA properties. NAMA advises me that it has a policy guidance for dealing with tenants’ difficulties arising from upward only rent reviews, which it has agreed to publish today. The NAMA policy guidance provides an opportunity for NAMA to approve rent reductions where it can be shown that rents are in excess of the current market levels and viability is threatened. The policy also provides for the appointment of an [859]independent valuation of market rent where necessary. NAMA has also advised me that where a tenant is not getting satisfaction in negotiations with his NAMA landlord, he can contact NAMA directly and it assures us that any queries will be dealt with speedily. I welcome NAMA’s realistic approach to this difficult issue. Now that NAMA has acquired €74 billion worth of property, it can be seen this arrangement will have widespread implications.

Mortgage Interest Relief

The Government is committed to helping address the problems faced by those who bought homes at the height of the property boom, between 2004 and 2008. Therefore, I am going to fulfil the commitment in the programme for Government to increase the rate of mortgage interest relief to 30% for first time buyers who took out their first mortgage in that period.

I also confirm the decision made by my predecessor that mortgage interest relief will no longer be available to house purchasers who purchase after the end of 2012 and will be fully abolished from 2018. For those who wish to buy a home in 2012, I am providing today that: first time buyers will get mortgage interest relief at a rate of 25%, rather than the 15% proposed by the previous Government; and non-first time buyers will benefit from relief at 15% rather than the reduced rate of 10% proposed by the last Government. Any young couples listening to me who are thinking of buying a home will have increased mortgage interest relief if they purchase in 2012 ——

A Deputy: Where are they going to get the money?

Deputy Billy Kelleher: They cannot get a loan.

Deputy Michael Noonan: ——but if they purchase in 2013, mortgage relief will end, arising from the decision of the previous Government.

Mortgage Arrears

Turning to those in mortgage difficulty, the Government is acutely aware of the increasing financial stress that some households are facing arising from difficulty in meeting their mortgage commitments. It was for this reason that the Government took the significant decision to establish a group to consider further necessary actions and to report within a very short time frame. The Government is now progressing with the implementation of the group’s recommendations as well as assessing other approaches as suggested by Deputies, Senators and by interest groups who made submissions. I expect to make a formal announcement on the next steps shortly.

Legacy Property Tax Reliefs

As part of this Government’s determination to develop a fairer tax code, legacy property reliefs must be reduced. My Department has undertaken an economic impact assessment of the measures proposed by the previous Government. It is quite clear that these proposals were unworkable and would have done significant and lasting damage to an already distressed property market, creating real difficulties for many ordinary people. This report is being finalised and will be published with the Finance Bill.

The report also highlights the vulnerability of small investors to insolvency if they lose these reliefs, a finding backed up by recent research from the Central Bank that shows high levels of negative equity and arrears in the buy-to-let mortgage sector. Therefore, I have decided not to proceed with the proposals put forward by the previous Government in last year’s budget. The report concludes that reliefs to small scale investors should not be restricted but that there is scope for larger investors to contribute more. The Government also believes that large scale investors in property that attracts tax reliefs can and should make more of a contribution. [860] Therefore, in the interests of fairness, a property relief surcharge of 5% will be imposed on investors with an annual gross income more than €100,000. This will apply on the amount of income sheltered by property reliefs in a given year. Reliefs in section 23 type investments will not be terminated or otherwise restricted for investors with an annual gross income under €100,000 as these are at the greatest risk of insolvency.

Investors in accelerated capital allowance schemes will no longer be able to use any capital allowance beyond the tax life of the particular scheme where that tax life ends after 1 January 2015. Where the tax life of a scheme has ended before 1 January 2015, no carry forward of allowances into 2015 will be allowed. The delayed implementation of this measure gives individuals time to adjust. Full details will be in the Finance Bill.

Role of NAMA

As NAMA has completed its loan acquisition phase and is now concentrating fully on the active management of the assets under its care, the NAMA board, with my agreement, asked Michael Geoghegan, a former CEO of HSBC, to review NAMA and report his findings to me. His report was generally positive but arising from it, I am establishing an advisory group to advise me on NAMA’s strategy and its capacity to deliver on that strategy through property disposal and the ongoing management of assets. In making appointments to the NAMA board, the advisory group will help me identify candidates with entrepreneurial and property skills. Recommendations will also be provided by the group on strategies for NAMA to attract international capital to Ireland and to provide advice in respect of lessons to be learned from asset management agencies in other countries. I will issue a direction order to NAMA under section 14 of the National Asset Management Agency Act 2009 setting out the work of the advisory group and requiring NAMA to facilitate its operation.

Banking Sector

A strong and vibrant banking sector is vital to our recovery and to any growing economy. Credit is the lifeblood of the economy and without adequate credit availability, businesses will find it difficult to maintain the jobs they have, let alone create new jobs. Also, without sufficient credit, it will not be possible for the property market to stabilise.

Since taking office, the Government has completed a large scale restructuring of the banking sector, in which the two largest institutions will function as universal pillar banks. The more problematic institutions have been ring-fenced into a single entity. These restructured and recapitalised banks must now serve the different sectors of the economy. We have set the two pillar banks ambitious SME lending targets of €3 billion each this year, €3.5 billion each next year and €4 billion each in 2013. By making this credit available we are supporting increased activity in a key sector for job creation. The banks must also make mortgage credit available to allow people to avail of the mortgage interest relief incentives announced.

Public Finances

The medium-term fiscal statement set out the Government’s policies on budgetary reform and the path to sustainable public finances, both of which are essential for the creation of jobs. In the light of the revenue and expenditure figures for November and the other information that has come to hand, my Department now estimates that the general Government deficit for this year will be 10.1% of GDP. This is lower than the 10.6% required by the EU-IMF programme. The general Government deficit target for 2012 is 8.6% of GDP. No matter what happens in the wider eurozone, Ireland needs to restore sustainability to its public finances. If the eurozone crisis recedes, we will be among the best placed to grow quickly, as evidenced by the European Commission’s growth forecasts. If the eurozone crisis persists, it is equally important for the State to reduce its dependence on borrowing.

[861]To continue to improve the sustainability of the public finances, we need €3.8 billion of additional fiscal consolidation in 2012. The Minister for Public Expenditure and Reform, Deputy Brendan Howlin, set out the €750 million capital expenditure consolidation on 10 November and yesterday set out how the €1.45 billion current expenditure consolidation would be implemented. In regard to the €1.6 billion revenue consolidation required in 2012, the full year effect of measures already introduced is €600 million, which means that I am announcing additional new tax measures today worth €1 billion approximately.

Taxation

The programme for Government states there will be no increase in income tax.

Deputy Finian McGrath: Tax the rich.

Deputy Michael Noonan: All the poor people down my way pay tax. I do not know what country the Deputy is living in if he thinks the low paid do not pay income tax.

Deputy Finian McGrath: Tax the rich.

Deputy Michael Noonan: That is the key issue for this budget. I want to make it clear that there will be no increase in income tax in this budget. In case there is any doubt, there will be no increases in rates, no narrowing of bands and no reductions in personal tax credits. Wages and salaries in January will be no lower than in December; therefore, people will continue to have discretion on how they spend their income.

Deputy Billy Kelleher: We should all go on holidays.

Deputy Michael Noonan: If one looks at the supporting documents and at the tables of income for different families and people in different family situations, one will find that we have achieved a first. If one looks across different families and partnerships, one will see the income from their wages and salaries will be exactly the same. I do not think that has ever happened before in a budget.

The Government has very carefully considered the options open to it. We must find €1 billion and there are options. There are five main sources of taxes — corporation tax, income tax, VAT, excise and capital taxes. Everybody knows that under the EU-IMF programme, expenditure has to decrease and taxes have to increase. Direct taxes such as income tax and PRSI have abiggerimpact on jobs than indirect taxes. If one taxes something, one usually gets less of it and income tax and PRSI are taxes on jobs. Indirect taxes have a lower impact on economic growth and jobs. That is why the bulk of the adjustments being made in this budget will be through increases in VAT and capital taxes.

The Opposition has already criticised this approach, but it should make clear in its replies to the budget what its alternatives are. Is it suggesting income tax should be increased or that we should welch on our commitment that the 12.5% corporation tax rate is sacrosanct?

(Interruptions).

An Ceann Comhairle: Deputies will have their turn.

Deputy Michael Noonan: If it is, it should test it out on the people in the next election, but we fundamentally disagree with that approach.

The majority of revenue adjustments to date have been achieved through increases in direct taxation. The marginal rate of taxation on income is now 52% for PAYE workers and 55% for the self-employed. The OECD has concluded that Ireland has the most progressive tax [862]system of the EU members of its organisation and revenue records show that the top 5% of income earners pay 44% of income tax. When the marginal rates of tax are very high, jobs are lost. Indirect taxes have a less adverse impact on employment. That is why in this budget indirect taxes rather than taxes on income are being increased. That does not mean that the wealthy should not carry the principal burden of tax. The minimum effective tax restriction on high earners is designed to ensure this by imposing a minimum effective income tax rate of 30% for those subject to the full restriction. In addition, they are obliged to pay 4% in PRSI and up to 10% in the universal social charge, bringing the minimum effective rate to 44%. This is a major and entirely justifiable change from the situation that prevailed a short number of years ago when a small number of them paid no income tax at all. Reports from the Revenue Commissioners indicate that the restriction is working. I will keep this restriction under review and may return to the topic in budget 2013, depending on the conclusions of a forthcoming Revenue report.

Universal Social Charge

I refer to another fairness measure we are introducing today. When the Government was planning this budget, it decided that it had to create jobs but that it had to be fair. It has two primary objectives. As a fairness measure, we have reviewed the impact of the universal social charge and I am pleased to announce that today I am proposing changes to the charge that will help the low-paid, part-time and seasonal workers in labour intensive areas such as the hospitality sector and farming. From 1 January 2012, the exemption level will be raised from €4,004 to €10,036.

(Interruptions).

An Ceann Comhairle: Please allow the Minister to continue.

Deputy Richard Boyd Barrett: Some €16 per month——

An Ceann Comhairle: I see the Deputy’s name is down; therefore, he will have his chance to speak in a few minutes.

Deputy Michael Noonan: In case the figures have been lost in the noise, the change means that 330,000 people will no longer be liable to pay the universal social charge.

The Revenue Commissioners will collect the universal social charge on a cumulative basis next year, thereby reducing the risks of over or underpayment of the charge. This will offset the costs of the very positive change made for the lower paid.

VAT

The previous Government agreed with the IMF and the European authorities to increase VAT by 2% — 1% in 2013 and 1% in 2014. In the interests of giving certainty, we are bringing these increases forward to 2012. During the lifetime of the Government we will not increase the standard rate of VAT beyond the 23% being announced today. That is another commitment in the programme for Government we intend to fulfil.

Other European countries have tended to place the burden of fiscal correction on indirect taxes rather than income tax. At this point, 20 of the 27 EU member states have increased VAT in the past four years and further increases are being considered by several member states. It should be borne in mind when people debate this sensitive issue that most food, children clothes, oral medicines and other goods and services will remain at the zero VAT rate.

Deputy Billy Kelleher: Children’s shoes also.

[863]Deputy Michael Noonan: The 9% rate introduced in the jobs initiative for certain services and the 13.5% rate that applies to home heating oil, residential housing, general repairs and maintenance works will remain the same. When the Opposition is scaremongering the elderly about not being able to fill the oil tank for central heating, it would want to remember that the rate of VAT which applies to central heating fuel is 13.5%, not 21% as certain Deputies opposite have claimed.

(Interruptions).

Deputy Tom Hayes: There is more good news.

Deputy Jerry Buttimer: Does Fianna Fáil miss Brian Cowen?

Deputy Michael Noonan: For the majority of the past 20 years the VAT differential between the Republic and Northern Ireland has been 3.5% and it was as high as 6.5% as recently as 2009. After the increase I am announcing, the differential will not be 3.5%, it will be 3%. On this basis, I do not expect any increase in cross-Border shopping as a result of the VAT increase.

Some opponents of the VAT change — experts in mental arithmetic — claim that the increase will cost households €500 per annum on average. I am informed that this calculation is incorrect, as they have not taken into account the fact that business contributes significantly——

Deputy Mattie McGrath: Everything does.

Deputy Michael Noonan: —— to the estimated VAT yield.

Ensuring a Fair Distribution of the Tax Burden

The programme for Government is committed to ensuring people with wealth pay their fair share.

Deputy Joe Higgins: No, it is not.

Deputy Michael Noonan: I am introducing a number of measures that will meet that objective. I am increasing the current rate of capital acquisitions tax from 25% to 30%; increasing capital gains tax from 25% to 30%; reducing the group A tax free threshold for capital acquisitions tax from €332,084 to €250,000; increasing DIRT from 27% to 30%, as we do not need to incentivise savings when the savings ratio has reached a phenomenal 14%; broadening the base for PRSI through the removal of the remaining 50% employer PRSI relief on employee pensions, therein following the example of the Government last year, which removed the first tranche; and further broadening the base for PRSI to cover rental, investment and other forms of income. I will introduce this measure, but it will not become effective until 2013, as we need some time to prepare. We are also increasing the rate of notional distribution on the highest value approved retirement funds, ARFs, and similar products to 6%. When the pension levy was introduced, many Members of the Opposition argued that this should have been done. It will be introduced via the finance Bill. We are increasing the rate of tax on the transfer of an ARF on someone’s death to a child over 21 years from 20% to 30%, which is intended to bring all capital taxes into line at the 30% rate.

I am abolishing the citizenship condition for payment of the domicile levy so as to ensure tax exiles cannot avoid it by renouncing their citizenship. I intend to keep the contentious issue of the tax treatment of tax exiles under constant review.

As a consequence of these measures, the rate of tax applying to capital, interest and earnings, through the high earners’ restriction, will all be aligned at 30%.

[864]Carbon Tax

I propose to increase the carbon tax on fossil fuels introduced in budget 2010 from the equivalent of €15 per tonne to €20 per tonne. The increase will be applied to petrol and auto diesel from midnight. However, in view of the impact this increase will have on home heating costs during the winter months, the increase on other fuels will not take effect until May 2012. This increase is half of that proposed in the previous Government’s four year plan for budget 2012. Since I am not going to apply the carbon tax to solid fuels, there will be no increases in the case of peat or coal, be it a bale of briquettes, a bag of blocks, etc.

Deputy Billy Kelleher: A bag of turf.

Deputy Frank Feighan: As I promised. Does Deputy Luke ‘Ming’ Flanagan still cut turf? He will thank me.

(Interruptions).

An Ceann Comhairle: Please allow the Minister to speak.

Deputy Michael Noonan: Consistent with our promise in the programme for Government, I am allowing farmers a double income tax deduction for increased costs arising from the change in carbon tax. Farmers will also be significant beneficiaries of the reduction in the universal social charge.

A measure that will benefit businesses is a reduction in the VAT rate on district heating from 21% to 13.5%. This will bring district heating into line with the majority of heating supplies. I am also amending the VAT refund order for farm construction to provide that farmers may claim a refund on wind turbines purchased from 1 January 2012.

Pensions

Owing to the changes in pension tax relief adopted in last year’s budget and the Finance Act 2011 and the pension fund levy required to fund the jobs initiative, the pensions sector will make a sizeable contribution of approximately €750 million to the Exchequer in 2012. Although the EU-IMF programme commits us to move to standard rate relief on pension contributions, I do not propose to do this or make changes to the existing marginal rate relief at this time. However, the incentive regime for supplementary pension provision will need to be reformed to make the system sustainable and more equitable in the long term. My Department and the Revenue Commissioners will work with the various stakeholders during the next year to develop a workable solution. This will include consultation on whether and to what degree pension funds might invest more in Ireland than abroad, as advocated by one of our leading trade unions.

Household Charge and Motor Tax

The household charge of €100 per dwelling has already been announced by the Minister for the Environment, Community and Local Government, Deputy Phil Hogan.

Deputy Mattie McGrath: Where has he gone?

Deputy Michael Noonan: To protect vulnerable groups in society, it is proposed to provide a waiver for those on mortgage interest supplement and those residing in certain categories of unfinished housing estates.

Deputy Mattie McGrath: Cá bhfuil an tAire?

[865]Deputy Michael Noonan: Provision will also be made to allow payment of the charge in instalments.

Deputy Finian McGrath: Where is Big Phil?

Deputy Mattie McGrath: He is missing.

Deputy Michael Noonan: There have been significant reductions in revenues from VRT and motor tax as a result of, among other factors, the consumer movement towards buying cleaner and cheaper cars. I am initiating a consultation process with the motor industry and other interested parties to commence in early 2012 to review options for the improvement in VRT and motor tax revenues in future years. In the meantime, however, the Minister will make provision for an increase in motor tax effective from 1 January 2012. This will generate additional income of some €47 million in 2012 to be used for Exchequer deficit reduction purposes.

Deputy Mattie McGrath: Where is the Minister?

Deputy Michael Noonan: The details are in the documents accompanying the budget.

Export Refund Scheme

I propose to have my Department engage in a consultation process with the motor industry with a view to putting in place an export refund scheme that would allow for a refund of VRT contained in a vehicle on the permanent export of the vehicle to another member state. This would restore a balance to the sector in the context of the number of imported cars. This would also be beneficial to the Exchequer and the environment through the displacement of used cars with new or less polluting cars.

Absenteeism

Absenteeism is a problem in the public and private sectors. One provision in the tax code may incentivise workers to absent themselves from work — where the employer makes up the balance of their pay, they may have more take home pay than if they were at work.

Deputy Richard Boyd Barrett: Is this the new scapegoat?

Deputy Michael Noonan: Therefore, I am removing the existing tax exemption for the first 36 days of illness benefit and occupational injury benefit in order that this incentive to absenteeism is removed. The Minister for Social Protection, Deputy Joan Burton, will in 2012 introduce proposals to deal with absenteeism in the public and private sectors. She will engage in discussions with all interested parties and invite submissions from the public with a view to introducing a range of proposals.

Deputy Finian McGrath: Here come the fags.

Deputy James Bannon: The Deputy might live longer.

Deputy Peter Mathews: He should not take it personally.

Deputy Finian McGrath: I am in trouble now.

A Deputy: The Deputy should thank us.

[866]Deputy Michael Noonan: Excise duty on a packet of 20 cigarettes is being increased by 25 cent from midnight. This increase will be applied to other tobacco products on a pro rata basis at the same time.

While the VAT increase will apply to alcohol, I am not increasing excise on alcohol. There has been much discussion on the issue of low cost alcohol products being sold in off-licences, particularly supermarkets. I am aware of the social and health consequences of the availability of very cheap alcohol leading to the abuse of alcohol, particularly by young people. The Minister of State at the Department of Health, Deputy Róisín Shortall, has developed a paper on the causes and consequences of alcohol abuse and in early 2012 will legislate to deal with the issues identified, including the low cost of alcohol sold in off-licences and supermarkets.

Deputy Joe Higgins: The Government could drive anyone to drink.

Deputy Jerry Buttimer: Back to Europe.

Deputy Michael Noonan: The next provision is one for the non-Puritan Members of the Opposition. I will introduce legislation to facilitate the extension of betting duty on remote betting and the introduction of betting intermediaries duty——

Deputy Joe Higgins: What about a tax on speculators in Europe?

Deputy Michael Noonan: ——to cover betting exchanges.

Conclusion

The core message of this Government is to get Ireland working again. It is the unifying goal of the new Fine Gael-Labour coalition Government. Last year, I said that the then Government had learned nothing and forgotten nothing. Twice in a generation, reckless spending on the back of irresponsible politics has landed our country in a fiscal crisis.

In my time in politics, I have experienced many economic downturns. In previous recessions the policy position was to get the country back to where it was before the recession began. There is no point in following that approach now. If we go back to where we were before it all began we will be back in the bubble economy when Ministers held a naïve belief that all of us could become wealthy by selling property to each other——

Deputy Joe Higgins: We did not hear too many objections from Fine Gael.

Deputy Michael Noonan: ——and in their hubris, the captains and kings of the development industry advised citizens of other countries on easy ways to get rich. If we need a role model it should be the economy of the mid to late 1990s where over 600,000 jobs were created and growth was based on competitiveness, high educational standards, a credit flow from the banks to enterprise and hard work.

Deputy Finian McGrath: The Government is cutting education.

Deputy Michael Noonan: This Government will not repeat the mistakes of the past. We are changing the way politics works to make it more transparent, more accountable and designed to secure the best outcome for the Irish people.

We are implementing our programme for Government commitments to improve the terms of the EU-IMF programme. This is a work in progress but our results to date include a reduction in the penal interest rate margin on the bailout package, which is worth a reduction of €10 billion in the burden of debt; the creation of jobs through the introduction of the jobs initiative——

[867]Deputy Mattie McGrath: And the Taoiseach’s PR man.

Deputy Michael Noonan: ——a refocus on fairness through the restoration of the cut in the national minimum wage; and an additional year to bring the deficit below 3% of GDP.

Deputy Billy Kelleher: And the Government will need it.

Deputy Michael Noonan: The budget changes the economic strategy of the previous Government to put a much greater focus on growth and employment. It balances the need to restore confidence in Ireland’s fiscal position with the key objective of supporting economic growth that delivers jobs.

In conclusion, I would like to associate myself with the comments made by my colleague the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, yesterday about the late Brian Lenihan. Brian Lenihan had, as Minister for Finance, a most difficult task, which he fulfilled with great courage and dignity. Go ndéanfaidh Dia trócaire ar a anam. I commend this budget to the House.

Deputy Billy Kelleher: Deputy Noonan got a bigger clap than Deputy Howlin.

Deputy Michael McGrath: I thank the Minister for Finance for his comments about our late colleague, Brian Lenihan, and I want to honour the memory of my predecessor as Fianna Fáil finance spokesperson, former deputy leader of our party and the man who, as Minister for Finance, introduced the last budget one year ago tomorrow. We can all agree that Brian’s patriotism and courage in the face of the greatest possible adversity remains an inspiration to all of us as we confront together the country’s enormous difficulties.

Today is not about the Government versus the Opposition. All of us have the privilege of being elected Members of Dáil Éireann and it is our duty to put the Irish people ahead of any narrow party political interests. I have no doubt we share the same fundamental objectives for this country — to bring about economic recovery, to improve the quality of life of our citizens and to give them hope during this dark economic period. It is our common purpose to make this country the best it can possibly be.

Today is the day Fine Gael and Labour accept the responsibility that comes with being in power. The Government can no longer hide behind the actions or decisions of the previous Government. When this Government came into office in March, the budget for the year had already been passed for them despite their trenchant opposition to it. Fine Gael and Labour had no major budgetary decisions to make until this week. From now on, they will be judged on the actions of the Government, their political choices and the result they bring for our people. Over the past two days, the Government has made known its political choices. Let us be clear that, difficult as the circumstances were, the Government had choices. It was working within the framework of the EU-IMF deal but, in the words of the Minister for Finance, Deputy Michael Noonan, speaking at the end of the last quarterly review by the troika in October, “the troika made it clear that they had no difficulty in substituting one fiscal measure for another with an equal value”. Let there be no equivocation on this point. The decisions laid before this House yesterday and today are the decisions of Fine Gael and Labour and nobody else. The EU and IMF did not tell this Government to cut child benefit for third and subsequent children, the EU and IMF did not tell this Government to increase the drug payments scheme threshold to €132 per month for hard-pressed working families, the EU and IMF did not tell this Government to cut the fuel allowance to vulnerable, elderly people by six weeks——

Deputy Arthur Spring: They told us Deputy McGrath’s party broke the country.

[868]Deputy Michael McGrath: ——and the EU and IMF did not tell the Government to breach its self-imposed pay cap for special advisers to the tune of €35,000. These were political choices made by Fine Gael and the Labour Party. Fianna Fáil has committed itself to a positive approach to opposition. We will not oppose measures for the sake of it, nor have we done so. If we agree with what the Government is doing, we will support it. If we disagree, we will oppose it and put forward what we believe is a credible and realistic alternative. I regret that this was not the approach of Fine Gael and the Labour Party in opposition. Their approach was utterly cynical. Measures that were obviously necessary for this country were opposed tooth and nail by Fine Gael in opposition. Much of the Opposition rhetoric, not to mention reckless election promises, are now coming home to roost. While in opposition and during the election, Fine Gael and Labour gave the Irish people the distinct impression that there would be an easier and softer way of tackling our problems. Now that those parties have shown their hand, the Irish people have been left bitterly disappointed.

Deputy Mattie McGrath: They are found out.

Deputy Michael McGrath: Various people who now sit around the Cabinet table have described this country as being banjaxed, as an economic corpse and as a country in a pawn shop. As a true republican party, we will not adopt such a negative, self-serving, corrosive style of opposition.

Deputy Tom Hayes: What will Deputy Pearse Doherty do about that?

Deputy Dinny McGinley: He is stealing Sinn Féin’s clothes.

Deputy Michael McGrath: I know that Government Deputies would rather there were no Opposition Members in this House but there is an Opposition. We may be small in number but we will make our voices heard, increasingly so from now on. We will call it as we see it but we will never portray this country in a light that is unfair or that will undermine the efforts to improve life for our people. This is a great country going through an extraordinarily difficult period in its economic history but come through it, I have no doubt, we will. The Irish people have endured a great deal over the past three years. Successive budgets have forced more and more sacrifice on them and many people are struggling to get by on a day-to-day basis. People are worried about providing for their children today and what the future will bring those children tomorrow. High levels of unemployment and forced emigration have re-emerged as an unwelcome feature in every community across the country. Many families will spend this Christmas without loved ones, with young Irish men and women working as far away as Australia, the US and Canada. Their absence and their aspiration for a future here must be given expression in this House today.

Deputy Paul J. Connaughton: Fianna Fáil drove them away.

Deputy Michael McGrath: Over the coming days, people will come to terms with the detail of the cuts and taxation measures announced yesterday and today. They will find many unpleasant surprises buried in the detail of the announcements that have been made, including social welfare rate cuts. For example, for pensioners with less than an average of 48 weeks’ contributions per year — basically anyone who left the workforce for any period of time, including mothers who spent time at home to mind children — will now be deprived of a pension, as was made clear in the statement yesterday. Disgracefully, for widows, the Minister is increasing the number of years contributions——

Deputy Emmet Stagg: Not true.

[869](Interruptions).

Deputy Micheál Martin: Let people speak.

(Interruptions).

Deputy Mattie McGrath: Éistigí.

Deputy Michael McGrath: The Government is increasing the number of years contributions required to qualify for a widow’s pension from three years to ten years. One-parent family payment is also being cut by bringing the qualifying age of a child to seven. These are rate cuts; they can be dressed up whatever way the Government wants but they are what they are and the people will know it when they get their welfare payments.

Deputy Mattie McGrath: They are mean.

Deputy Michael McGrath: The Government pretends that rates are being maintained but for many welfare claimants, weekly income will be substantially cut. In the cold light of day, and I hope the Minister reflects on this, there are some measures that should be reconsidered. The cuts the Minister is imposing on young people with disabilities are deeply unfair.

Deputy Finian McGrath: Hear, hear. They are disgraceful.

Deputy Michael McGrath: It is a heartless and cruel cut. Cutting up to €88 per week from young people going on disability allowance, some of whom have severe and profound disabilities, is totally unnecessary and should be reversed.

Deputy Finian McGrath: It is shameful.

Deputy Michael McGrath: Young people with disabilities look forward to having an income of their own. They look forward to the independence it gives them and the quality of life it brings with it.

Last year the Minister rounded on Fianna Fáil and the Green Party in Government for imposing a cut on the blind pension and I believe he was right; it was the wrong thing to do.

Deputy Bernard J. Durkan: He admits it a year later.

Deputy Finian McGrath: Stand up and be counted, Deputy.

Deputy Michael McGrath: What the Minister proposes today on cutting the disability allowance for young people up to the age of 24 is also the wrong thing to do and it should be reversed.

Deputy Mattie McGrath: Good man, Michael.

Deputy James Bannon: Deputy Mattie McGrath is doing better with the €40,000.

Deputy Michael McGrath: The Minister certainly has the backbenchers to drown us out, he has the numbers to bulldoze through whatever measures he wants; he does not need the support of Fianna Fáil or anyone else in Opposition but for the sake of the €7 million saved with this cut, he should have a second look.

In education, the changes announced will effectively mean some schools will no longer provide guidance counselling services for students. If they do, they will see an increase in the pupil-teacher ratio. At a time when young people are under huge pressure to perform in school [870]and to conform with their peers, often the school guidance counsellor is the safety net that prevents a personal problem from escalating even further. With youth mental health and suicide a growing problem for our young people, this is a cut that could come at a high personal price for many.

Education is a core value of our party. As a country, given the direction our economy is heading, having a postgraduate qualification is becoming increasingly necessary for our graduates. The cuts planned in postgraduate education are socially regressive and economically counterproductive. These changes will mean in a great many cases that a son or daughter of a widow, a carer or someone from a low income family will no longer have the option of pursuing postgraduate education. This is not right. Education is a gateway to a better future, for individuals and for the country.

Deputy Pat Rabbitte: The Deputy is speaking to yesterday’s statements.

Deputy Michael McGrath: This cut, along with the further cut to student grants and the 20% cut to the fund for students with disabilities at third level——

Deputy James Bannon: Is this Deputy Seán Fleming’s speech from yesterday?

Deputy Michael McGrath: ——will save a miserly €15 million. Postgraduate education should not be the preserve of the wealthy and if the Minister goes ahead with these cuts, that is exactly what the outcome will be. When that information is placed alongside the report in today’s The Irish Times that there are 200 people in the third level sector earning €150,000 and more, with 100 of them earning more than €200,000, where is the fairness?

Deputy John Paul Phelan: Who oversaw that?

Deputy Michael McGrath: On coming into office nine months ago, this Government asked to be judged on its success in tackling the jobs crisis. If it succeeds, I and my party will be the first to congratulate it. The retention of existing jobs and the creation of new jobs must be the number one priority for all of us. We can all accept that making inroads into Ireland’s unemployment rate will help to solve so many other problems, as the Tánaiste so regularly pointed out in opposition. It would reduce our social welfare bill, improve our income tax take and increase the disposable income households have. It would be the most painless way of reducing our budget deficit and getting our economy back on track.

On entering office, the Taoiseach promised a jobs budget within 100 days in Government. He delivered a jobs initiative in May that was funded by a raid on private pension savings. I regret that the initiative has so far failed to deliver.

Deputy Mattie McGrath: With the exception of the Taoiseach’s office.

Deputy Michael McGrath: The truth is that the number of people on the live register is 448,600 people, 7,300 more than the day the Government entered office.

The Government pointed to increased tourism numbers in 2011. There is evidence of that and we welcome it. That increase is compared to the exceptionally low base in 2010 and the signs of recovery in tourism were evident before the VAT reduction took effect in July.

Today’s budget fails to give any meaningful hope to those looking for a job. The Minister outlined some measures to give a boost to job creation, and we welcome those in so far as they go, particularly the changes for research and development. We included those in our budget submission. The Minister announced again the loan guarantee fund and the microfinance fund, [871]along with some measures to companies that wish to export to the emerging economies. Those measures are welcome but they are limited. I expected enterprise, job creation and targeted initiatives would be at the centre of the budget and such measures are sadly lacking. There are no targets and there is no timetable for delivery and long gone is the talk of 100,000 new jobs. When I look at the detail of the document put before us today in the stability and growth update, net employment is expected to fall slightly next year by 0.2% with unemployment averaging 14.1% in 2012. The Government is effectively saying there will be no discernible improvement in the employment situation in 2012. That will be a major disappointment for many people looking for a job.

I am glad the Minister read our budget proposals on the universal social charge and the changes being introduced to exempt many part-time, casual and seasonal workers. That is a step in the right direction. I am sure Government backbenchers will agree that it is a modest change to a charge Fine Gael and Labour railed against from the Opposition benches last year. I am sure he will not seek to spin this change out of all proportion because the truth is that for anyone working full-time, it makes no difference, while for those earning less than €10,000 there can be a saving of up to €4 per week but that saving has been more than wiped out for anyone relying on any welfare benefit by the changes announced yesterday.

Deputy Michael Creed: The Deputy has some neck.

Deputy Michael McGrath: If we look at the combined effect of the changes announced yesterday and today, when we examine the figures closely, the people who will be hardest hit are working families with children and families dependent on welfare. If we take two examples we can see this. A working family with four children over the course of a year will lose €432 child benefit and while we can quibble about the exact amount, they will lose about €300 to €400 in VAT at least. On the drugs payment scheme they will pay an extra €144 and an extra €100 for the household charge. For motor tax, excise duty and carbon tax they will lose at a minimum another €100. If they are fortunate enough to have private health insurance, the VHI has said there will be a 50% increase in the premium arising from the measures announced yesterday. For a family of six people, a typical One Plus plan is about €2,000 so we can add another €1,000 for that. For such a working family irrespective of its income, the total cost of these budget measures is approximately €2,176. Let us take a second example of a family with three children aged three, eight and 14, where the parents paid income tax for years but where the principal earner lost his or her job at the start of the recession——

Deputy James Reilly: When Fianna Fáil was in power.

Deputy Michael McGrath: ——and the family now relies on mortgage interest supplement to heat the family home. They will lose €228 on child benefit. They will lose €120 on fuel allowance. For the youngest child they will lose €200 on the back to school allowance and for the two older children they will lose €105 between them. With much less disposable income the VAT increase will cost them approximately €250 — I am sure the Department of Finance officials will not disagree with that. Motor taxation, carbon tax and excise duty increases will cost them a minimum of €100, which is a very conservative figure. Critically in their case, as a family relying on mortgage interest supplement, the Government imposed a savage cut yesterday, reducing the budget for mortgage interest supplement by approximately a third and increasing the minimum contribution from €24 per week to €35 per week. That will cost that family €572 in a year. That is €1,575 for a family entirely dependent on welfare. That is the net effect of the budget introduced yesterday and today. These are just two examples of families already hard hit by the recession.

[872]It would be unrealistic for me or anyone else on this side of the House to think that those people and other families would be unaffected by the budget — we are not that naïve. The major flaw in this budget is that its impact is not progressive — in fact it is a highly regressive budget. It is also socially regressive because of the choices the Minister has made. The token 5% surcharge on income that is sheltered by the reliefs is a pretty poor compromise for the Labour Party to make given the way it made hay when sitting on the Opposition benches and calling for the immediate abolition of all the property-related tax reliefs. If that is all it managed to negotiate in government, it does not say much for its clout in government.

Deputy Emmet Stagg: We are trying to fix the mess Fianna Fáil left behind.

Deputy Michael McGrath: It is all very well to tell people it is not——

(Interruptions).

An Ceann Comhairle: Deputies.

Deputy Michael McGrath: It is all very well to tell people the Government is not increasing their income tax and not cutting their basic welfare rates, but that is cold comfort to families already struggling to get by and they realise the impact the budget will have on them. These families will certainly not take the advice of the Minister for Transport, Tourism and Sport, Deputy Varadkar, and book a holiday any time soon on the back of this budget.

Deputy Tom Hayes: The Deputy did not listen to what he said.

Deputy Michael McGrath: The Government is not asking the very high earners in the economy to make any contribution bar a token gesture of 5% for those who are sheltering income with tax relief.

On the broader economic picture, the detail of today’s document again reveals that the Government has downgraded its growth forecast for 2012. It has only been approximately three weeks since it came out with the medium-term fiscal statement proclaiming that growth in the economy would be 1.6%. The Minister’s speech and the accompanying detailed document now state that growth is forecast to be 1.3%, which does not inspire much confidence. Three weeks after coming out with the much heralded four-year plan, the medium-term fiscal statement, the Government has already downgraded the growth forecast for 2012 to 1.3%. It is correct that 1.6% was almost certainly too optimistic and I sincerely hope the 1.3% growth it has now forecast is achieved and exceeded.

With each passing day since that announcement in November the Government’s forecast for growth looked increasingly optimistic and out of line with the views of a range of independent commentators. We all know that consumption in the domestic economy continues to contract — the Government’s stability and growth update forecasts that to continue in 2012. Consumer sentiment is weak and the extra money the budget will take out of people’s pockets will make matters worse. While we hope the ECB will further reduce interest rates later this week — which the Government should demand be passed on to personal and business customers — on all other fronts the omens for consumer confidence have deteriorated in recent months and 2012 will, at best, be another fragile year for the domestic economy.

Our exports reached record levels this year and have the potential to bring us back to significant economic growth. Multinational companies operating in Ireland and many Irish businesses have performed remarkably well in the export sector. However, the risks we face are stark. Our ambitions for an export-led recovery are now under serious threat from the ongoing euro[873]zone debt and financial crisis and its impact across the globe. Our main trading partner, the UK, has dramatically downgraded its growth forecast for 2012 from 2.5% of GDP to 0.7%. The European Commission has downgraded its forecast for the eurozone economy for next year from 1.8% to 0.5%. Others predict that the eurozone could slip back into recession. In simple terms, if there is less demand among our main trading partners for the goods and services we produce, our exports will suffer and it will act as a drag on economic growth.

In its quarterly economic commentary, published last week the ESRI downgraded Ireland’s growth forecast to just 0.9% for next year and forecast a contraction in GNP. The OECD took a similar outlook at just 1%. I am glad the Minister has come to the realisation that 1.6% was an outlier and has come back into line somewhat with other forecasts for the Irish economy for 2012. It may still prove to be too optimistic, but I hope it does not.

5 o’clock

The 9% increase in income tax receipts the Minister forecast for 2012 before he even stood up in the House today appears ambitious even taking into account the carry-over effect from last year’s budget on which he relies. As the Minister is well aware, the last three months’ Exchequer returns have shown a significant deterioration in tax receipts. In November alone those receipts were €337 million off target and the White Paper on expenditure and receipt shows that the full-year tax take is estimated to be €700 million below target. This is even after it is flattered by the mid-year raid on private pensions yielding approximately €460 million. The Minister has pointed out many times that for every 1% of economic growth that is not achieved, the impact on the Exchequer is approximately €800 million. If 1% is taken off the growth for next year, the impact on the Exchequer finances and the targets in this budget will be very clear indeed.

When the political commitments made by Fine Gael and Labour, and the 2012 budget strategy outlined yesterday and today are taken into account, it is clear the Government has left itself very little room for manoeuvre for its remaining four years in office. On the main four income headings, it has used all its headroom in VAT in the first year by front-loading the 2% increase and capping the rate at 23%. It has committed to no income tax increases over the lifetime of the Government, although I note that is somewhat diluted in the text of the Minister’s speech in which he commits to no income tax increases in 2012. However, we can only take him at his word that there will be no income tax increases over the lifetime of the Government. We all agree that the corporation tax rate should not be increased and we can also agree that there is a limit to the amount of excise that can be put on a litre of petrol or a pint of beer.

On the expenditure side, the Government has ruled out any reductions in welfare rates in the next four years’ budgets as well as yesterday’s even though it has slipped in a few by the backdoor. It appears to be committed to the Croke Park Agreement to 2014. Therefore it has left very little room on either the revenue or expenditure side should its growth forecasts prove to be too optimistic. Without question it has made the easier political choices in this budget. However, I am not so sure it will have the same luxury in the coming years. The sobering news for all the Government backbenchers is that far from this being the hardest budget the Government will need to introduce, it may well prove to have been the easiest.

Deputy Eric Byrne: It just goes to show the task Fianna Fáil set us to regain our sovereignty.

Deputy Michael McGrath: Since coming to power the Government’s strategy has been to look for easy targets to raise tax revenue — ideally once it believes people will not notice. It raided private pensions for €460 million, but because people do not see it coming out of their disposable income the Government felt it would get away with it. It is now focusing on VAT, hoping people will not notice that either. The Minister may be trying to pass this off as simply [874]an increase in tax on luxury items, but many everyday items on which families rely will increase in price as a result of this VAT increase, including such basic items as mobile and land line phone calls, adult clothing and footwear, car park charges, detergents, petrol, diesel, oil, prams, shampoo, soap and toothpaste, which are hardly luxury items.

A Deputy: Remember Jim Kemmy.

Deputy Michael McGrath: When news of the VAT increase leaked in the German Bundestag the Minister was quick to put out his analysis that it would have a greater impact on the better off. However, the distribution effects of VAT in Ireland were examined by the ESRI in a paper published as recently as July. The results were unambiguous.

They showed that those hardest hit by a VAT increase are households in the lowest 10% income bracket, households in rural areas and one-parent families.

The Minister said a few months ago that what we need is for people to start buying again. I would have expected Government policy to underpin that objective. The Government has instead done the opposite.

Deputy Mattie McGrath: It is closing small businesses.

Deputy Michael McGrath: A 2% increase in VAT is a mistake at this time. I accept it is included in the EU-IMF deal for 2013 and 2014 but the Government has chosen to front-load it at a time when the domestic economy is at its weakest. At a time when exports are facing a challenging environment, there was a need for positive emphasis on the domestic economy but the Government decided to do the opposite.

The Minister for Finance, in a reply to me last week, stated that the VAT increase would yield €670 million. I note that figure is again confirmed in the budget document.

Deputy Michael Noonan: In a full year.

Deputy Michael McGrath: Yes. The Minister also confirmed in that reply that such a projection takes no account whatsoever of any reduction in demand brought about by an increase in VAT. The Minister has many economists at his disposal in the Department of Finance. Surely one of them told him that if he increased prices, demand would reduce. A basic economic principle is price elasticity of demand. I am not going to exaggerate and say that this will result in a negative yield. Of course it will not. However, I do not believe this 2% increase in VAT will result in an additional €670 million to the Exchequer. I am shocked that the Department of Finance has allowed that to get through.

Deputy Mattie McGrath: And Deputy Mathews. Deputy Mathews gives free advice.

Deputy Bernard J. Durkan: And former Fianna Fáil Deputy, Mattie McGrath.

Deputy Mattie McGrath: He was not given a job.

(Interruptions).

Deputy Finian McGrath: I hope everyone will buy his new CD.

An Leas-Cheann Comhairle: Order, please.

(Interruptions).

[875]Deputy Michael McGrath: A little light relief is no harm on days such as this. We all welcome that.

Let us take one example. Car sales have gone into decline since the end of the scrappage scheme in June. Figures released on Friday by the motor industry show that car sales in November were down 50% on those for the same month last year. The 2% VAT increase will add €300 to the cost of an average family car. The State collects considerable revenue from car sales in terms of VAT and VRT. The Minister may find that not alone will VAT returns be depressed but other forms of tax such as VRT may suffer a knock-on effect as people adjust their spending patterns on the basis of this VAT increase.

We need to consider what will be the impact of the VAT change on customers in the Border region. I am not prone to exaggeration and will not suggest, as did many of the Minister’s colleagues when on this side of the House, that increasing VAT will send everyone over the Border to shop. However, I do listen to those close to the ground. For example, the Derry Chamber of Commerce is celebrating the Government’s decision to increase our VAT by 2%. It is adamant that this will result in more people going across the Border to shop. The Dundalk Chamber of Commerce also makes the same point. It believes its businesses will be hammered because of the VAT increase here. Where borderline decisions are to be made on purchases, people will go over the Border. Not alone will they purchase that particular item but they will do other shopping too, resulting in a loss to the Exchequer.

The Minister has often made the point that the euro-sterling exchange rate is also an influence on cross-Border shopping, which I accept. While that exchange rate may be favourable now, a weakness in the pattern of the exchange rate on the sterling side will have a major impact on us. A combination of the VAT increase and an adverse movement in the exchange rate could exacerbate the problem. The Minister is aware that VAT is way under profile. The latest Exchequer returns put it at €464 million compared with profile, which is not fully explained by the reduction in VAT announced in the jobs initiative.

The difference between what was said by Members of the Government parties when in opposition and now when they are in government is incredible. The Minister for Jobs, Enterprise and Innovation, Deputy Bruton, for whom I have great respect, said in opposition, in response to a 0.5% increase in VAT by the late Brian Lenihan: “The Minister has made decisions today that will threaten to turn a recession into a depression.” The Minister for Social Protection, Deputy Burton, who I regret is prone to exaggeration said: “the Minister is proposing to increase VAT by 0.5% to an astronomical 21.5% ... one of the highest rates in Europe”, which she said would send “shoppers scurrying over the Border to queue in ASDA in Enniskillen and Sainsburys in Newry.” I would love to know what she thinks about increasing VAT to 23%.

Deputy Michael Healy-Rae: Where is the Minister?

Deputy Mattie McGrath: She is gone.

Deputy Billy Kelleher: She is on her way to Enniskillen.

An Leas-Cheann Comhairle: Order, please.

Deputy Michael McGrath: We believe the Government’s decision to impose a levy on private pension funds was deeply unfair. The Government is in effect raiding the private savings of Irish citizens. This measure runs contrary to the long-established principle of all Governments to encourage people to save prudently for their retirement. It was a sneaky levy. The Minister said it is a levy on the industry yet the Government voted down an amendment put forward [876]by this side of the House which would have forced the industry to absorb the levy and not pass it on to pensioners by way of reduced benefits or to workers by way of increased contributions. The Government voted down that amendment.

Deputy Barry Cowen: Hear, hear.

Deputy Michael McGrath: The levy is being passed on to pensioners by way of benefit cuts. We have all heard the Tara Mines story. Many others will emerge in the weeks and months ahead. Existing workers are being asked to pay additional contributions to make up the shortfall. We know by way of freedom of information that this decision was made against the advice of the Pensions Board and officials and that the Minister for Social Protection wrote to the Minister advising against doing it.

I am highly sceptical of the Government’s promise to end the levy in four years time. I hope it sticks to its promise. We all know what happens to levies like this, namely, they become embedded in the system. The Exchequer becomes dependent on the revenue and the link which was so clear at the beginning between this levy and the funding of the jobs initiative will become blurred with the levy remaining in perpetuity. I hope I am wrong. Let us wait and see.

Fianna Fáil proposes that instead of imposing this levy the Government should put in place an investment stimulus of at least €5.6 billion over the next four years. The Government’s pension fund levy should be ended and replaced with a mandatory investment by pension funds of 4% over four years in the strategic investment fund announced by the Government in September.

Deputy Barry Cowen: Hear, hear.

Deputy Michael McGrath: This would be an investment of €700 million per annum and could be supplemented with an equivalent annual investment from the remaining discretionary portfolio in the National Pensions Reserve Fund. This would offer a long-term cashflow benefit to private pensions funds while stimulating economic activity and developing the infrastructure capacity of the State. Such a fund could also be open to regular savers, as in the case of the national solidarity bond.

Deputy Barry Cowen: Hear, hear.

Deputy Michael McGrath: I expected the Government to put enterprise and jobs at the centre of the budget announcements made yesterday and today. Sadly, I was disappointed. We must ensure that enterprise is at the heart of every Government decision. While we must continue to attract foreign direct investment, small and medium-sized Irish businesses will lead recovery in the Irish economy. We need to give them every possible assistance. We need an appeals mechanism based on economic circumstances to limit the burden of local authority rates. We need a significant enhancement of supports for small businesses. Fianna Fáil proposed in its pre-budget document a doubling of the modest budget available to city and county enterprise boards.

I believe that the Government should convene an economic advisory council to complement the work of the fiscal council. The economic advisory council should comprise a broad range of representatives from the private sector to advise Government on enterprise and wider economic policy. Membership of such a council could be drawn from key sectors of the economy, including SMEs, financial services and the export sector such as the agrifood industry. The steps taken since 2008 have resulted in a marked improvement in our competitiveness. The [877]European Commission forecasts that by 2012 Ireland’s competitiveness will have improved by 14%, the largest in the European Union. This progress must be continued.

We need as a country to encourage and reward rather than penalise people who take the risk of becoming self employed. As a means of encouraging entrepreneurship, the State should consider the introduction of a voluntary PRSI scheme for the self-employed so that, similar to other PAYE workers, when they lose their jobs they can claim jobseeker’s benefit and other welfare benefits. The current system is a deterrent to anyone thinking of starting a new business. The Minister has finally brought clarity to the issue of upward-only rent reviews, although not the clarity expected or promised to retailers. When upward-only rent reviews were ended for new leases, both the Labour Party and Fine Gael were absolutely adamant that there would be no problem with doing the same for existing leases. For nine months Members have been told the Minister for Justice and Equality is consulting the Attorney General. I had intended to ask how long did it take for the Attorney General to tell the Government whether a measure was constitutional.

Deputy Bernard J. Durkan: How did they come about?

Deputy Michael McGrath: Presumably, that answer has been given. Today the Government has raised the white flag on the issue of upward-only rent reviews. The uncertainty it allowed to develop in the past nine months created a vacuum in the commercial property sector.

Deputy Bernard J. Durkan: How long is it since they were introduced?

Deputy Michael McGrath: Retailers did not know where they stood and investors were not able to make investment decisions because they had no solid basis for calculating a rental yield. This was the legacy of the Government’s decision on this measure for nine months——

Deputy Brendan Griffin: The Deputy should be ashamed to talk about legacies after what happened in the last 15 years.

Deputy Michael McGrath: ——while failing to come up with a decision.

Deputy Brendan Griffin: The Deputy should be ashamed of himself.

An Leas-Cheann Comhairle: Please, Deputy.

Deputy Michael McGrath: I am glad the Government has finally made a decision because that is what I had intended to ask the Minister to do today.

Deputy Billy Kelleher: Is the Deputy still on the minimum wage?

(Interruptions).

Deputy Bernard J. Durkan: Not even Deputy Mattie McGrath could come up with that one. That was an appalling suggestion.

An Leas-Cheann Comhairle: Can we have some order, please? One voice, please.

Deputy Michael McGrath: I had intended to ask the Minister to end the uncertainty and draw a line under the issue one way or another because this is what retailers and those who invest in property have been seeking for months. The line has been drawn under it, but it also has been drawn firmly under another broken promise by Fine Gael and the Labour Party.

Deputy Barry Cowen: It was not a red line anyway.

[878]Deputy Michael McGrath: On the €100 household charge, the Bill has been published by the Minister for the Environment, Community and Local Government, Deputy Phil Hogan. However, it raises more questions than answers. In the detail of the document accompanying the Minister for Finance’s statement today, I note the site valuation-based tax is now not proposed to come into effect until 2014. Consequently, it appears as though a flat rate tax will be levied on households for at least two years and the Government’s capacity to deliver on this measure within that period remains to be seen. People really want to know where this charge is headed. Does the Government plan to increase it next year? I am sure the Taoiseach will agree that it is not fair or equitable to have in place a flat rate tax over a prolonged period, whereby someone living on Ailesbury Road will pay the same charge as someone living in a two bedroom apartment in Dublin city centre who is in negative equity of €200,000. The level of exemptions and waivers set out in the aforementioned legislation is miserly. The Government is also asking widows, carers, the disabled, pensioners, those in mortgage arrears and negative equity to pay this household charge.

Deputy Barry Cowen: That is right.

Deputy Michael McGrath: Amendments will be tabled and Members will find out how the Government reacts to them.

How much time remains?

An Leas-Cheann Comhairle: The Deputy’s time has almost concluded.

Deputy Micheál Martin: The Deputy needs a further minute, given all the heckling.

Deputy Michael McGrath: I have a lot more to say.

An Leas-Cheann Comhairle: I am afraid the Chair is independent.

Deputy Michael McGrath: I will be brief.

Deputy Tom Hayes: The Deputy wants to conclude.

Deputy James Bannon: Let him repeat himself.

Deputy Timmy Dooley: The Deputy is used to that.

Deputy Michael McGrath: This is a socially regressive budget. Its impact will be felt hardest by low and middle income families with children, young people with disabilities, vulnerable elderly people and students trying to chart a better future. The Government had the option of closing loopholes, a measure that was promised, and targeting higher income earners. Instead, it has played its trump card by increasing VAT in the first year of its five year life. This is despite the clear evidence of the weakness of the domestic economy. The tens of thousands of families in mortgage arrears will find nothing in today’s announcement that will help them. People outside medical card guidelines who take out medical insurance will be hit with massive premium increases. The 448,600 people on the live register are being told that unemployment will increase.

The real flaw in this budget is its inherent lack of fairness. The people know cuts must be made and that taxes must be increased and are willing to accept them if they are fair. Unfortunately, as the measures announced today and yesterday are rolled out in the weeks ahead, that basic test of fairness will not be achieved. The real measure of this budget and the Govern[879]ment’s economic strategy will be whether real inroads are made in the months ahead in reducing unemployment. I am sure all Deputies, despite their differences, can agree on that much.

An Leas-Cheann Comhairle: I now call Deputy Pearse Doherty.

Deputy Pearse Doherty: While, obviously, the Minister is taking telephone calls from the Bundestag to seek opinions on his announcement, I would like to have the attention of the Taoiseach.

Deputy Bernard J. Durkan: The Deputy should take it easy.

An Leas-Cheann Comhairle: Sorry, may we, please, have order for each speaker?

Deputy John Paul Phelan: I imagine that had been rehearsed for a long while.

Deputy Bernard J. Durkan: From whom has the Deputy been taking calls?

An Leas-Cheann Comhairle: Deputy Durkan, please.

Deputy Pearse Doherty: Last February a huge majority of the electorate voted for change. They voted for an end to the failed policies of Fianna Fáil and the politics of the Green Party. They voted for a new approach to the economy, unemployment, the banks, public services and political reform. Moreover, they voted for an end to political cronyism. They wanted change, fairness and equality. Most of all, they want hope tomorrow will be better than yesterday.

In the nine months since Fine Gael and the Labour Party took office, they have broken promise after promise. They have slowly but steadily dashed the hopes of the people who put their faith in them. Across the State, despite the litany of broken promises, people were still holding out for good news. They still were yearning for hope the Government’s budget announcements this week would make tomorrow better than yesterday. While I have no desire to come to the Chamber and criticise, having listened to the Taoiseach’s ministerial colleague, Deputy Brendan Howlin, yesterday and the speech today of the Minister for Finance, Deputy Michael Noonan, I am left with no other option. People want solutions. They do not want shouting from the sidelines. They want a plan. A few weeks ago my party submitted to the Department of Finance a costed pre-budget submission. It was a document full of choices, which set out a route to recovery. The Government took some of our advice and backed down on some cuts. In addition, it went after the public health budget subsidising private health care. However, it did not go far enough.

History will judge the Government badly, as it has made all the wrong choices. Never has a Government promised so much and delivered so little. After this budget, the Taoiseach cannot stand up in the Chamber and claim it is all Fianna Fáil’s fault. He cannot wring his hands and say there was no option and that the Government was obliged to do this. This is its budget and these are its choices.

The Taoiseach: Yes, we accept responsibility for it.

Deputy Pearse Doherty: While Fianna Fáil caused this mess——

Deputy Micheál Martin: Actually, we did not.

Deputy Pearse Doherty: ——today the Government has added to it.

Tá daoine ina suí sa bhaile a thug tacaíocht do bhur gcuid páirtithe. Tá siad ag éisteacht leis an gcáinfhaisnéis seo. D’éist siad leis an méid a bhí le rá ag an Aire, an Teachta Howlin, inné. [880] Tá siad ag iarraidh a fháil amach cén difríocht a rinne an toghchán i Mí Feabhra seo caite. Is cinnte gur tháinig athrú ar na páirtithe sa Rialtas, ach níor tháinig athrú ar bith ar pholasaithe an Rialtais. Nuair a chuaigh na céadta míle daoine chuig na botháin vótaíochta, ní hamháin go raibh siad ag iarraidh deireadh a chur le ré Fhianna Fáil, ach bhí siad ag iarraidh deireadh a chur leis na polasaithe lochtacha a bhíá chur i bhfeidhm ag Fianna Fáil freisin. Cad a chuala siad inniu agus inné? Chuala siad Fine Gael agus an Lucht Oibre ag cur na polasaithe lochtacha sin i bhfeidhm go huile is go hiomlán.

People who watched the Budget Statement will be numbed by its effect as they add up the total loss of income from the Minister’s stealth charges and spending cuts. They have had two days of bad news of cuts and taxes mounted on top of one another with no regard as to how they are meant to pay for any of it. Ordinary families have been crying out for fairness. The Taoiseach and the Minister told Members repeatedly that, if anything, this budget would be fair. In his State broadcast last Sunday night the Taoiseach told the people they had not caused the crisis. Today, however, the Government is making every single person pay for it. Is this the fairness the Minister had in mind? I refer to a fairness that gives Anglo Irish Bank €3.1 billion of taxpayers’ money every year while 500,000 people cry out for investment in jobs. This is a fairness that allows the Taoiseach, the Tánaiste and the Minister for Finance to earn €200,000, €184,000 and €169,000, respectively, per year, while ordinary working families are struggling to make ends meet. Of course, the Government is not going after the high earners in this budget. Last year the Minister for Finance was in receipt of a ministerial pension on top of his Dáil salary. The Taoiseach is aware of this because last year, when he still was an Opposition Deputy on this side of the House, he was in receipt of a ministerial pension. Although the Government now talks about how it will change everything, its members engaged in such practises in opposition only 12 months ago.

A Deputy: There have been big changes.

Deputy Pearse Doherty: Had Sinn Féin not put these payments on the agenda, sitting Deputies would still be in receipt of them. The Taoiseach did not go after the high earners in this budget because he and his colleagues are the high earners. Times are tough but they are not tough for the Government or its political cronies.

(Interruptions).

Deputy Pearse Doherty: Tell me, Taoiseach, riddle me this——

The Taoiseach: I can hear the Deputy. He should keep it down.

Deputy Pearse Doherty: ——what happened to those who caused the crisis? What does the budget say to them — the bankers, the developers and the politicians who were there at the time of the crash? Where is the fairness in the budget for them? We know that 22 of the top 50 Anglo Irish executives who were there at the time of the collapse are still in their positions. Nineteen of them earn more than €175,000 a year, paid for from the public purse. We know that the former taoisigh, Bertie Ahern and Brian Cowen, are on pensions, after the Government’s reduction in them, of €147,000 per year.

Deputy Arthur Spring: That is bad maths.

Deputy Pearse Doherty: While the Government is increasing taxes on ordinary working families, Ministers, junior Ministers and officeholders are still able to claim an unvouched tax write-down of up to €3,500 to have their laundry done when they stay in Dublin hotels.

[881]Deputy Paul Kehoe: The Deputy is wrong about that.

Deputy Pearse Doherty: That is the type of fairness the Government wants to introduce in this budget. If this is the Taoiseach’s and the Minister’s idea of fairness, it is a very skewed sense of fairness.

What was fair about the cuts yesterday?

Deputy Paul Kehoe: What about claiming expenses when you do not turn up?

Deputy Pearse Doherty: They were of the most vicious nature. The Government went after children, the disabled, lone parents, widows and carers. These were its five target groups. It spun a line about protecting social welfare payments — about not cutting the basic unemployment rate. All the while the Government was cutting the extra child benefit rates, multiple birth grants, abolishing disability benefits for those under 18 years of age and slashing it almost in half for young people. It attacked lone parents on multiple fronts, going after widow and widower pensions, cutting the back to education allowance, slashing the fuel allowance and going after carers. That is just one small element of what the Government did in one Department. The Government deceived the Irish people in its cuts savings. It claimed, for example, that social welfare cuts would amount to €475 million, but that is just for 2012. In a full year social welfare cuts will amount to €811 million, the education cuts will amount to €316 million and health cuts will amount to €837 million. I note that the Minister is nodding his head, but this book says that the full year effect of the health cuts will be €797 million. At least I know now what to buy the Taoiseach and the Minister for Finance for Christmas because they cannot do the sums. They are €40 million out in their sums in this book and the book that was presented yesterday.

Deputy Caoimhghín Ó Caoláin: Hear, hear.

Deputy Pearse Doherty: We demand that €40 million back. We will give them a calculator at Christmas or maybe they are just continuing with the Kevin Cardiff school of economics with €3.6 billion here and €40 million in health cuts there; sure what the hell; it does not make a difference.

The Taoiseach: €30 million in the Northern Bank.

Deputy Pearse Doherty: There are cuts of €1.9 billion across these three areas and these were the front-line services the Government was supposed to protect.

Tá gach páirtí istigh anseo ag rá go bhfuil siad i bhfabhar na Gaeltachta agus na Gaeilge. Ní leor briathra breátha agus caint gan ghníomh. Tá sé ríshoiléir anois nach bhfuil ar siúl ag an Rialtas ach cur i gcéill agus bréaga. Tá gearradh siar de 10% déanta ar bhuiséad na Gaeltachta. Tá an Ghaeltacht faoi ionsaí, tá Oifig an Choimisinéara Teanga le dúnadh ag an Rialtas, níl sé chun cead a thabhairt toghchán a reáchtáil fá choinne bhord Údarás na Gaeltachta úr a thoghadh agus táísliú céime tugtha don Údarás. Níl go leor maoiniúá chur ar fáil chun poist a chruthú agus a chaomhnú sa Ghaeltacht agus tá an straitéis 20 bliain caite ar leataobh ag an Rialtas. Beidh na impleachtaí marfacha seo uilig ag titim ar mhuintir na Gaeltachta agus todhchaí na Gaeilge sa tír seo go hiomlán. Ní leor sin ar chor ar bith.

The biggest cut yesterday was in people’s expectations because there is no hope offered in this budget to the growing numbers of working poor, to the struggling middle income families or to the most vulnerable in society. There is no vision for business, no economic thinking that adds up. This is not what people signed up for; it is not what they wanted when they voted for change. Today, people who are already struggling are being told they will have to pay more [882]stealth taxes, a household charge and higher VAT, motor taxes, fuel and excise costs. Rural dwellers are being discriminated against. They are being told that they will have to pay septic tank charges and we know that water charges and property taxes are on the way for all.

The Minister, Deputy Noonan, announced €1 billion in new taxes today and there was some applause for going after wealth. I am glad about some of the measures that were introduced and I will deal with them in more specific detail later. However, let us deal with the four main stealth charges. They are motor tax, the full year effect of which will yield €46 million, the household charge which will yield €160 million, the increase in VAT which will yield €670 million and the carbon tax which will yield €109 million, which together add up to €985 million. Those are the measures from which the Government will get €1 billion in new taxes — stealth taxes that affect the most vulnerable in the most indiscriminate way. However, people are also being told that none of these taxes will go towards public services. Health, education and welfare will all suffer under this Government. The Taoiseach is increasing taxes to continue the failed banking policy of Fianna Fáil.

Yesterday we heard the Government cut €2.2 billion from public spending. Next year our debt servicing costs will increase by €2.6 billion. The Taoiseach should be honest with the people and tell them where their money is going. He should also be honest and explain that all the Government’s cuts and taxes will not work. The Exchequer deficit remains large because instead of directing our resources into creating jobs and growing the economy, the Government has nearly spent it all on bailing out the banks and it is continuing along that failed path. Let us be clear about the position because the Government cannot blame it all on Fianna Fáil. Since Fine Gael and the Labour Party took office in March of this year, the Government has pumped a staggering €20.7 billion of our money into the banks, including €3.1 billion into Anglo Irish Bank, and it will make a further such payment on 31 March next year, the year after and each year after that up until 2025.

Deputy Bernard J. Durkan: That is a commitment that was already entered into.

Deputy Pearse Doherty: The reckless economic policies pursued by Fianna Fáil during the boom created the economic crisis. The years of austerity and bank bailouts that it followed deepened the crisis. Now the continuation of these same policies by Fine Gael and the Labour Party will only serve to make matters worse.

Across the country people will have watched the Minister deliver his budget speech today and they will be growing increasingly despondent. They will feel angry, hurt and badly let down. I appeal directly to every one of them — the people who want change and voted for it last February, and to every person who feels we deserve better — and I want every person contemplating emigration, or who is at his or her lowest, or feels there is no light at the end of this tunnel to know that real change is still possible and that there are people in this State who believe in, and have a vision of, a better, fairer Ireland and, with their help, can make this a better country.

There are better choices despite the fact that Fine Gael and the Labour Party decided not to take them in this budget. Sinn Féin has championed the alternative. It has argued that the priority in this budget should have been investment in jobs. We argued against spending cuts and pointed out that the tax system needed to be overhauled and the wealthy had to pay their fair share. I advise the Taoiseach and the Minister that no wealthy person ever died from having to pay more taxes. However, the cuts the Minister inflicted on health services and social welfare payments yesterday will mean the difference between life and death. Some 5,000 people die prematurely every year in this State because of inequality in areas such as health. Up to [883]2,000 people die each winter due to the cold. How many more people will die from fuel poverty or inadequate access to health care following the Government’s cuts? As if the cuts were not bad enough, today it heaped more pain on people with its stealth taxes — the VAT rise, the carbon tax and the household charge.

Undoubtedly, Ireland needs to stabilise its finances. We need to return to the bond markets as soon as possible and Sinn Féin is of the opinion that the sooner the better we get out of this mess so that we can get back our sovereignty, but where we differ with this and the previous Government is over the best and fastest way to do that. I am firmly of the view that continuing with Fianna Fáil’s failed banking policy will not help our chances of recovery. I am joined in this view by economists of the left, centre and right. It is hard to find somebody bar Fine Gael, the Labour Party, Fianna Fáil, the ECB and banks who think it is unjustifiable to put €3.1 billion into Anglo Irish Bank or to continue to repay the unguaranteed bondholders in full but that is what the Government is doing. It has already fully recapitalised the banks while the rest of Europe waits to see if the EFSF or ECB will pick up the tab for them. Bailing out banks and bondholders while asking the sick, the elderly and children to pick up the tab is shameful. Leaving aside the banking crisis, we have a structural deficit that must be reduced. In our pre-budget submission we set out a package of measures that would close the deficit, starting with a figure of €3.5 billion in new measures in 2012. This would bring the deficit to 8.3% of GDP when implemented alongside our proposed €7 billion stimulus package. We propose this stimulus package could be funded from what remains of the National Pension Reserve Fund and by partial investment from the European Investment Bank.

Deputy Bernard J. Durkan: Another easy option.

Deputy Pearse Doherty: This would create a minimum of 60,000 jobs and potentially save up to 100,000 others.

Our approach to economic recovery is far more comprehensive than the Government’s deficit focus strategy. The Government believes it can cut its way out of the recession, but this was tried by Fianna Fáil and it completely and utterly failed; €20.6 billion of unfair taxes and cuts later, has the Government not learned the lesson? If cuts and flat taxes worked, the deficit would have closed by now.

The fact that the budget is predicated on a set of growth figures for next year which have already been reviewed downwards by observers means the budgetary adjustment will not have its desired effect. I am sure the Minister is blushing at the fact that after huge anticipation a few days ago about what the growth rates would be in 2012 he came to the Chamber today and downgraded the rates by 0.3%. Is the Government making this up as it goes along?

Deputy Bernard J. Durkan: What is the Deputy’s prediction?

Deputy Pearse Doherty: Our measures are fair, would be non-deflationary and the most likely to work.

Deputy Bernard J. Durkan: They are calculated to appeal to everybody. They are populist.

Deputy Micheál Martin: The Taoiseach stated they would be 1.6% two weeks ago.

Deputy Pearse Doherty: The domestic economy is on its knees. People’s spending power has been demolished and today the Government has added to the mess by cutting it more. Less money in people’s pockets means less money in tills, and less money in tills means fewer jobs. It is a vicious cycle, which is why we proposed measures such as a wealth tax, a third rate of income tax on earned income over €100,000 and abolishing the universal social charge.

[884]The Government has set itself numerical targets which cannot be reached because it does not factor in the effects its bad policy has on economic activity. I want to deal with some of the specifics of these bad policy measures. I do not know whether I am the only person in the State who remembers the five point plan. Does the Taoiseach remember it?

The Taoiseach: I do.

Deputy Pearse Doherty: I will remind him.

Deputy Damien English: It was also a five year plan.

Deputy Pearse Doherty: Point 1 was a €7 billion stimulus package to create 100,000 jobs. The Labour Party had a similar plan.

The Taoiseach: Sinn Féin had another one.

Deputy Pearse Doherty: Today 444,000 people are on the live register, which is 9,500 more than when the Government took office. We cannot count all the people who have emigrated or those who are not eligible for welfare assistance such as the self-employed, for whom no safety net is provided.

The Taoiseach: As the Minister stated in his opening address.

Deputy Pearse Doherty: The Taoiseach seems to think emigration is a safety valve for unemployment. I know it is hard to take——

Deputy Bernard J. Durkan: It is.

Deputy Pearse Doherty: ——but if he listens, he might learn something. A total of 54,000 have emigrated since he took office. I want to tell him what emigration is really like. Emigration will mean empty chairs at the dinner table this Christmas; it means grandparents never seeing their grandchildren and families and communities being devastated. Has the Taoiseach walked through any of our third level campuses recently?

The Taoiseach: All of them.

Deputy Pearse Doherty: Has he? Has he found a student who believes emigration is not part of his or her future? He will be hard-pressed to find a student who does not believe this.

Deputy Bernard J. Durkan: If they keep listening to the Deputy, they will leave.

Deputy Pearse Doherty: How does the Taoiseach tell the parents of these children the reason he is driving them out of the State and he has prioritised private bank bondholders over the future of Irish schoolchildren?

Tá a fhios ag an Taoiseach nach dtiocfaidh cuid mhór de na daoine seo ar ais go dtí an tír seo choíche. Ní bheidh an deis sin acu. Tá daoine inniu sna Stáit Aontaithe, san Astráil agus i dtíortha eile agus ní thiocfaidh siad ar ais go dtí an tír seo go deo. Ní scéal úr é seo. Tharla sé roimhe seo. Chonaic muid an rud céanna sna 1950í agus 1960í, agus arís sna 1980í.

The Taoiseach: Bhí mise ann.

Deputy Pearse Doherty: Bhí ar m’athair agus mo mháthair an tír seo a fhágáil agus imeacht go hAlbain, an áit ina rugadh mé fhéin, mo dheartháireacha agus mo dheirfiúracha. Bhí an t-[885]ádh linn go raibh deis againn teacht abhaile go hÉirinn i ndiaidh 20 bliain thar lear. Ní raibh an deis chéanna ag go leor daoine eile. Níor éirigh go maith le go leor daoine nuair a d’fhág siad an tír seo. D’obair said go dícheallach, chuir siad airgead i leataobh le haghaidh a gcuid teaghlaigh agus chuidigh siad leis an tír. Nuair a tháinig amanna crua, chaill siad a gcuid post agus a lóistín agus bhí orthu cónaí ar na sráideanna. Tá a fhios ag an Taoiseach go bhfuil siad fós le feiceáil ar fud na bailte móra i Sasana. Is mór an náire é don Taoiseach gur fhógair an Rialtas inné go bhfuil €1.3 milliún le baint as na daoine a d’fhág an tír sna 1950í agus 1960í, agus atá ar an ngannchuid i Londain inniu. Is mór an náire é daoibh.

The Taoiseach gives a good talk on jobs, but strip away the rhetoric and take it down to the bone and there is nothing there. He might have got away with this in the first few days and weeks of government, but now it is wearing thin. Yesterday he cut the capital budget by €750 million.

Deputy Arthur Spring: Sinn Féin cut it in the North.

Deputy Pearse Doherty: Enterprise Ireland’s budget was cut and the Government went after disposable income. Today the VAT rate and fuel prices have been raised. Taoiseach, you are actively trying to cut jobs.

An Leas-Cheann Comhairle: I ask the Deputy to make his remarks through the Chair.

Deputy Pearse Doherty: The 2% hike in VAT will see more businesses put under strain from diminishing consumer spending and more of them will go to the wall. The vicious cycle began by Fianna Fáil and the Green Party of relying on indirect taxation is being continued under the watch of the Government. Not only will this measure be tough for business and jobs, it will disproportionately affect lower income earners who pay more of their income in VAT. The €670 million it is stated this figure will bring in is less than what Sinn Féin proposes to bring in through a wealth tax. We propose to bring in €800 million.

The Government talks about tough choices, but it is not tough to go after a spending tax. It is tough to go after wealth, the vested interests and change the status quo. France has the luxury of wealthy individuals appealing to the government to tax them more, just to be patriotic. In Ireland the wealthiest in society stand behind the Government and ask for the most vulnerable to be taxed more and the Government acquiesces.

Deputy Bernard J. Durkan: That is reminiscent of what was going on here for the past ten years. This was the richest country in the world

Deputy Pearse Doherty: One cannot squeeze any more blood from the stone; it is dry.

The VAT rate rise announced today is a mistake. The Minister knows this because it is the argument he made in opposition. This is not to mention the impact the VAT rate rise will have on already struggling Border towns, including in my home county of Donegal. Increasing VAT in the hope it will generate enough cash to reduce the deficit is absolute nonsense. By its nature, it will have a diminishing effect on returns as people spend less. We can already see this happening as VAT returns have collapsed this year. What the Government is doing is attempting to run just to stand still.

I listened to Fianna Fáil speak about the unjustifiable nature of increasing VAT, but let us be clear: the only difference between Fianna Fáil’s VAT plans and those of the Government is 12 months. Fianna Fáil also saw VAT as an easy option. It also drove hard-pressed retailers in Border counties to the wall. It pushed up the cost of living for ordinary people and is no more interested in saving jobs than the Government.

[886]Deputy Bernard J. Durkan: The problem with the Deputy’s plan is that it will not work.

Deputy Pearse Doherty: The Government’s attacks on education will do little to help the knowledge economy. The State cannot come out of the crisis without the tools to do so. These tools include a well trained and well educated workforce. By making education the preserve of the elite and allowing an opportunity only for those who can afford it, the Government is not ensuring a workforce for the future. This is what it has done through cuts to capitation grants and in funding for higher education bodies. It has also increased fees by €250, about which I am sure the students are delighted——

Deputy Dominic Hannigan: Sinn Féin is closing schools in the North.

Deputy Pearse Doherty: It is also abolishing maintenance grants for postgraduate students. The Government is pulling down the shutters on the futures of thousands of young men and women not lucky enough to be born into a wealthy family. In this day and age, in a First World country, I do not know how anyone can stand over this. This is a mantra that is meant to distract people while the Government is holding them upside down and shaking the spare coins out of their pockets with its VAT increases, household charges, water charges and other stealth taxes.

Keeping rates and bands the same means keeping them the same for everyone. Therefore that means that those on €20,000 are treated the same as those on €200,000. That is nothing to be proud of.

We have proposed the abolition of the universal social charge, to be replaced with the income levy, with the lower rate reduced to 1%, while reintroducing the health levy. This would mean that everyone earning under €75,000 would be better off under Sinn Féin’s direct taxation proposals. The Government has failed to do that today. It would also mean 500,000 people being taken out of the tax net.

The Government has claimed that people will come out of this budget with the same take home pay. What it does not say, however, is that when they get home with their pay packets, they will be fleeced by higher bills, charges, stealth taxes and a range of other measures aimed at reducing their disposable income.

The Minister for Finance has announced a tinkering with the universal social charge. I welcome the fact that he has ensured that those earning less than €193 per week will be exempt from the universal social charge. However, does the Taoiseach think it is fair that people earning €193 or €194 a week are still paying this unjust charge? There were 514,000 more people brought into the tax net as a result of the universal social charge. The measures announced today will leave 184,000 of them still in the tax net. These people are paying a regressive charge that is not only damaging their quality of life, but also economic activity in terms of consumption.

To have lifted everyone earning under €15,000 out of the universal social charge would have cost €120 million. Taking everyone out from under the minimum wage would have cost €170 million. Sinn Féin would have abolished it, but even this measure would have been fairer than what the Government has done today.

We look at tax in a different way. We go after wealth, tax breaks and loopholes. Reducing the pension ceiling and capping or standardising pension reliefs would bring in €550 million alone. Halving mortgage interest for landlords would bring in €400 million. The changes that we proposed to capital acquisitions tax and capital gains tax would bring in €360 million. This is a strategy that increases revenue without damaging the wider economy.

[887]Flat rate taxes are regressive. The Labour Party seems to have mixed up the definitions of “regressive” and “progressive” since its election manifesto, so I will simplify it for the party. Regressive taxes are unfair and not as productive. If they look it up in the dictionary, they will find it beside property taxes.

Nowhere is the Minister for Finance’s political choice to go after the socially and economically vulnerable more stark than in his decision to levy a flat rate regressive tax on households. A household charge is a stealth tax. The way he has levied it will hit those struggling the hardest. Regardless of income or property size, everyone will pay €100. A family with three children, a mortgage of €1,000 a month, and mounting energy and food bills will pay €100. A wealthy individual, however, who is living in a valuable home with no mortgage, will also pay €100. Perhaps the Taoiseach can tell me how this measure is fair.

Some government party Members will say it is only €100. They will say that because they have simply no idea what €100 means for a family that is already on the breadline. Add that €100 to increased bills, increase travel costs and cuts in income, as announced yesterday, and we will see what it starts to mean and how it adds up. It is only €100 this year but we know from the programme for Government and the memorandum of understanding that Fianna Fáil negotiated that it is to increase year on year.

What is more distressing is that the Minister for Finance is levying this charge on people, many of whom are in mortgage distress. These people took out huge mortgages, at high interest rates in some cases, and paid massive sums in stamp duty just to own a home. The Minister has done little or nothing for the 100,000 households in mortgage distress. Today he has said he expects them to pay the Government a €100 household charge on top of their bills. It is neither right nor fair.

The Minister has lined up stealth taxes in this budget but I wonder if he has given any thought to their effects. Take motor tax, for example. I know from my own county of Donegal — and it is the same right across rural Ireland, including the west — that people are dependent on cars for transport. We do not have trains in Donegal or public transport networks like other regions. People need their cars to get to work, drop their children to school, take care of relatives and go to the shops. They need their cars to get from A to B. That is thanks to the legacy of bad transport planning by previous governments, which ignored the west. None the less, the Minister has increased motor tax and, in addition, fuel is going to go up. We also know that there is a proposal to examine VRT, resulting more motor taxes when the report comes back next year. Therefore, the driver of a mid-range car can expect a €46 increase in motor tax, and people are angry about it. People in County Donegal will ask whether they are expected to pay €46 more given the roads on which they are travelling, but they already pay €46 nearly every second week to have their shock absorbers fixed due to the potholes. Incidentally, these potholes will not be repaired because the Minister has cut €750 million from the capital budget.

The changes to capital acquisitions tax and capital gains tax do not go far enough. Yesterday, the Government attacked child benefit to save €70 million in a full year. When I heard about these cuts I was reminded that last year, Deputy Joan Burton told this House when Fianna Fáil cut child benefit that it was a reflection of how few women were in government and how little power women had. As she is now in government, the Minister for Social Protection, Deputy Burton, could have gone to her Cabinet and explained that an increase in capital gains tax to 40% would have raised €195 million. In addition, reducing all the capital acquisitions tax thresholds by 25%, while increasing the rate to 35%, would have raised €165 million. In today’s Budget Statement, however, the Minister for Finance has allowed capital gains tax exemptions. If the Minister for Social Protection had been able to convince the Cabinet of the [888]need for these measures, she would have saved the cut to child benefit. She could then have rightly declared that she, as a woman, had wielded considerable political power.

The Minister for Finance has failed to deal with the legacy of Fianna Fáil property reliefs which drove the bubble. He has extended a capital gains holiday for people who choose, once again, to speculate in the property market. He has cut stamp duty for non-residential property from 6% to 2% from midnight. His attitude to property should be compared with his attitude yesterday to young, severely disabled people, whom he told he valued half as much as the day before. He is the same as Fianna Fáil Ministers he condemned last year. He will protect high earners whom he fears will become insolvent, but he will go after the most vulnerable and tell them that he has no choice. He is trying to create speculation in the property market yet again but will not deal with upward-only rent reviews which are destroying businesses and killing jobs. Not dealing with upward-only rent reviews means the State will pay €10 million in rent. The State rents properties that are locked in to upward-only rent reviews totalling €58 million. As late as this morning, the Taoiseach told us that matter was under review. Did the Minister for Finance not give him a copy of his script before the Taoiseach took the Order of Business?

The Taoiseach: I said to wait for the statement.

Deputy Pearse Doherty: The Taoiseach talks about jobs. I got a message from someone in my own constituency who said he was closing up and jobs would be lost because of upward-only rent reviews. The Taoiseach will probably say that there is nothing he can do about it, but does he know that the Department of Agriculture, Food and the Marine is applying the upward-only rent review? That Department is putting that person and others out of a job. Regardless of any legal advice, this State has individuals and businesses tied into upward-only rent reviews. I have a full list of them in my office and will pass them on to the Taoiseach if he wants.

The Taoiseach: Go raibh maith agat.

Deputy Pearse Doherty: That is something the Taoiseach can deal with straight away, here and now.

There are 100,000 families in serious mortgage distress, but where is the fairness for them in this budget? Almost 70 families are falling into serious mortgage distress every single day. While repossession rates have been low in comparison with other countries, that will not last forever. Some 1,048 families have lost their homes in the last two years, which is 1,048 repossessions too many. Without Government action this number will increase.

The Fine Gael-Labour programme for Government included clear promises on mortgage distress. They promised to direct mortgage providers in receipt of State support to cut their costs, yet today mortgages are more costly than when the Government took office. They promised to make greater use of mortgage interest supplement to support families who cannot meet their mortgage payments. Yesterday, however, the Minister for Public Expenditure and Reform, Deputy Howlin, announced a cut of €22.5 million to this benefit and increased the personal contribution for struggling home owners by up to €572 per year. Despite all the promises made during the election and in the programme for Government, Fine Gael and Labour are now taking the same minimalist approach that was taken by Fianna Fáil. Across the State, thousands of families face sleepless nights wondering how they will pay their mortgage bill next month. They will be faced with choosing between falling into mortgage arrears or buying their children presents for Christmas. They will have watched the budget speech, searching for something that would give them hope, and they will have been bitterly disap[889]pointed. They will ask a simple question: if the Government could find €20.7 billion for the banks since taking office, why could it not find anything for them? If it is so easy to bail out the banks comprehensively, why can the Government not provide any support to families at risk of losing their homes?

As it did following the publication of the Keane report in October, the Government has left struggling home owners at the mercy of the banks and saddled tens of thousands of home owners with decades of unsustainable debt. It could have chosen a different course and looked to prioritise maintaining the family home. It could have sought appropriate alternatives to ensure debt sustainability and found a way to ensure that the burden of mortgage distress is shared fairly between the borrowers and lenders.

The approach of the Minister for Finance, Deputy Noonan, in increasing mortgage interest relief to 30% for first-time buyers who purchased homes between 2004 and 2008 demonstrates that he does not understand the magnitude of the problem. This is the wrong approach as it will assist some but leave many others in continued distress. It is arbitrary, discriminatory and not enough. What about the family which bought a home before 2004, the family which needed to upgrade because of an increase in family size and the family which relocated in search of work? Does this measure assist these struggling mortgage holders? No, it does not.

I am very conscious that the Government has produced the budget we are debating against a backdrop of an intensifying European crisis that could have far-reaching implications for the future of Ireland and for the eurozone. My party leader and I have asked the Government on numerous occasions whether there is a contingency plan in place for dealing with any eventualities arising from the euro crisis. We know other Governments, including the French and Germans, have been developing such plans. Even investment firms in this city are developing such plans and have passed them on to their customers. Nevertheless, each time we raise this issue in the House the Taoiseach tells us he has every confidence in European partners and their ability to stabilise the crisis.

The Taoiseach: I thought the French and Germans have made things clear.

Deputy Pearse Doherty: Nobody believes the Taoiseach; not the public, the markets nor this House. I urge the Taoiseach to bring the Opposition parties into Government Buildings to discuss this issue, in confidence if required.

Deputy Arthur Spring: Sinn Féin has walked out on the issue before.

Deputy Pearse Doherty: The Government must urgently reassure the public that it is taking this crisis seriously and preparing for all scenarios. The events unfolding in Europe are frightening people. Agreements are being reached between powerful EU member states and Ireland is not even represented at the table. Last week the Taoiseach said clearly he was against further treaty change but this morning, the Tánaiste, Deputy Eamon Gilmore, stated that the Government was open to negotiation on treaty change. Where does the Government stand on the issue? Does it support enshrining austerity and recession-inducing budgetary policy into EU treaty law? Does it support giving the European Court of Justice a say in policing member state budgets? Does it support the transfer of fiscal powers from this House to the EU institutions?

Deputy Arthur Spring: Sinn Féin did that by supporting the bank guarantee.

Deputy Pearse Doherty: Does it support ruling out any private sector involvement in burden sharing in dealing with the currency crisis? I ask these questions because these are the key elements of the proposals that Nicolas Sarkozy and Angela Merkel will bring to the EU crisis [890]summit on Friday. These are the demands they will be making. More importantly, these are proposals that will consign this State and its people to a decade of crippling austerity. If agreed this weekend, they will have negative consequences for employment, debt and reducing the deficit. In short, they will undermine everything the Government is claiming to have achieved with this week’s disastrous budget.

What will be the Government’s bottom line in the crisis summit this weekend and does it even have one? What price is the Government willing to accept in exchange for wearing the economic straitjacket being proposed by Sarkozy and Merkel? Will the Taoiseach return from the summit like Albert Reynolds did in 1992 with a bag full of euro gold, hoping the electorate will be bedazzled into accepting treaty changes with long-term and damaging consequences for Ireland and the eurozone? Will this Government agree to changes in the hope of avoiding a referendum, using technical legal arguments to avoid giving the people their say? Some 90 years ago today, one of the Minister for Finance’s predecessors signed a treaty that had far-reaching and negative consequences for the Irish people. Let us hope the Taoiseach does not come back to Ireland after this summit having made the same mistake.

The Government has been softening up the Irish people for months, telling them it had to deliver this budget and it had no other choices. It raised the spectre of the troika and the memorandum of understanding, which the Government indicated it would renegotiate, on every occasion to defend its own economic agenda.

An Leas-Cheann Comhairle: The Deputy will have to conclude his remarks.

Deputy Pearse Doherty: There were choices to be made this week and my party’s pre-budget submission set them out. Our submission chose not to go after ordinary families but to invest in growth and jobs. It chose to cut the high earners in the public sector and tax those who could afford it. The Government claims it could not have implemented such choices but that is untrue. Members of my party have met representatives of the troika and they told us they would accept such choices as long as the main budgetary targets are met.

All of these choices damage the economy and will damage people’s families. Last night a homeless man was found dead in Dublin and it is suspected he died from hypothermia. Does that move the Taoiseach? He is a member of a Government that allows people to die of cold on the streets. Every year after the budget, since I have been elected to the Seanad and Dáil, I leave Leinster House by the Kildare Street entrance. Every Deputy and Senator will know there are two places where homeless people sleep that are within sight of the plinth. I walk past those homeless people and wonder if the budget has changed their life in any way. The answer is always “No”.

The Taoiseach: Does the Deputy speak to those people?

Deputy Pearse Doherty: With this budget the Taoiseach and his Government are exposed. The Irish people sat in judgment of Fianna Fáil and I promise the Taoiseach they will judge Fine Gael and Labour the same way.

The Taoiseach: That is a speech of despair.

Deputy Mick Wallace: I wish to share time with Deputies Richard Boyd Barrett and Shane Ross.

Acting Chairman (Deputy Joe Costello): Is that agreed? Agreed.

[891]Deputy Mick Wallace: I am not sure what people expected from the budget of today and yesterday, but there was a mixture of hope and fear. There is much anger out there and people are not very happy about how things are. It is very difficult for many people, and those people have many reasons to be angry. The recession is getting deeper for many and unemployment is at a very high level, especially for young people. Many parents are demoralised because it is impossible for children to get jobs. People are also still angry about the excesses of bankers and the manner in which the banking crisis became a crisis for everybody, including those people who may not be let in the front door of a bank.

What makes people most angry is that the level of inequality in our society has not been challenged. This is hard to take for many people. Poverty is relative and when making comparisons, we would look at what others have against what we have or our kids have. People think there cannot be poor in a country where most people have mobile phones and televisions. However, it is not like that. I would rather be poor in La Paz in Bolivia than poor in Dublin.

Europe plays a big part in all our dealings. Ms. Merkel and Mr. Sarkozy seem to be calling the shots more and more. They are now talking about a compromise not a solution. Some people want the ECB to be a lender of last resort while others want European sovereign bonds, neither of which the Germans want. What the Germans want appears to be lifelong austerity for us. They would like us all to be Germans now. That would involve a very different life for us. We will probably never get our economy back on an even footing but then we would not have to make anything because we could buy everything from the Germans anyway because they make many things. They are the second largest exporters in the world after China.

6 o’clock

There has been a huge transfer of power. This country joined the EU with the belief that it was joining a family of nations and that we would be treated well in the group. We expected fairness. The principle was that the strong would help the weaker. The truth is that for many years money came into this country that provided a huge boost. Admittedly, we had to give away our most valuable asset in the fishing industry. It was one of the main things we gave up. A great deal of money came in that helped to drive this country into the 21st century but more and more the benefits have disappeared. Not only are we now facing a situation where the financial markets seem to be making the decisions, but we also have a serious democratic deficit. Decisions are being made for us and we have no say in the matter. Italy and Greece are governed by people who were not elected. Spain is being governed by a party that got fewer votes than the number of abstentions and spoiled votes, so great is the anger in Spain. We no longer expect a democratic right from the great rulers of Europe.

If anyone thinks that the financial markets will act in the interests of the common good then he or she should think again because that is not the way they work. They are very good at organising the movement of goods and the transfer and exchange of goods across Europe and the world but they are not quite as good at training workers, creating infrastructure, protecting the environment, and regulating themselves. They would not be good at looking after the most vulnerable in society. We should not depend on them so much. I am not fond of what Europe is offering and I am less fond of what it seems to be about to offer in the near future. Finance should be a servant to society not the master of it.

I refer to an article by Larry Elliott of The Guardian to whom I have referred a few times as I find him particularly good. He says:

The European Union has always had problems with democracy, a messy process that can interfere with the grand designs of people at the top who know best. When Ireland voted no to the Nice Treaty, it was told to come up with the right result in a second ballot. [Likewise, with the Lisbon treaty.] The European Central Bank wields immense power, but nobody [892]knows how the unelected members of its governing council vote because no minutes of meetings are published. That said, the latest phase of Europe’s sovereign debt crisis has exposed the quite flagrant contempt for voters, the people who are going to bear the full weight of the austerity programmes being cooked up by the political elites.

Here’s how things work. The real decisions in Europe are now taken by the Frankfurt Group, an unelected cabal made of up eight people: Lagarde; Merkel; Sarkozy; Mario Draghi, José Manuel Barroso; Jean-Claude Juncker; Herman van Rompuy; and Olli Rehn... This group, which is accountable to no one, calls the shots in Europe. What matters to this group is what the financial markets think not what voters might want [or need].

I voted “No” to the Nice treaty and I voted “No” to the Lisbon treaty, even though I am very pro-European. I would never describe myself as a Nationalist; I describe myself as a European, even though I would also say I am Irish. One of the things that frightened me about the Nice and Lisbon treaties was the inroads they allowed for large corporations to seriously affect how we run our country. The driving philosophy is neoliberalism and at its core is to put the maximum power one can into the hands of the fewest people who control wealth. They like to control resources, production and services. They function best in so-called democratic countries where elections are held on a regular basis. Sadly, politicians are influenced by people in power and people with money. The elected politicians elect the legislature and it makes the decisions. A good example from the past 20 years is when Mr. Tony Blair got elected in 1997 in London. Murdoch’s newspapers came out on the morning of the election and called on people to vote Labour. The first measure Labour brought into parliament was one which allowed Murdoch a €50 million reduction in his tax bill that year in Britain. One must pay for favours. That is nothing new to any of us.

Unfortunately, the people who most need our help do not have much influence with the powers that make decisions. If one comes from Darndale, one would probably find it difficult to get a meeting with a Deputy, let alone have a decision made in one’s favour. The people of Darndale probably need our help more than most. I am concerned about where we are going. Part of the EU agenda with its neoliberal slant is for our postal service to be opened to competition that can be cherry-picked by private organisations and for that reason we are closing post offices around the country. We are closing Army barracks and forcing people to drive further to work. We are starting to close Garda stations. Small pubs in rural areas are closing. Now we are going to close nursing homes. One could ask what it will be like to live in this country in ten years’ time if we keep going this way.

I know there are no easy answers to how one runs a country. I do not like all the different ways the Government sought to find the required €3.8 billion. It must be difficult for old people to hear their fuel allowance is being cut. Parents who are trying to get their children to school are being told that back to school allowances are being cut. We have seen what is happening in health and education. There is huge undermining of the real values in society.

Acting Chairman (Deputy Joe Costello): Deputy Wallace has one minute remaining.

Deputy Mick Wallace: Mr. Albert Einstein, the philosopher and mathematician, said the human being is both solitary and social. As a solitary being he looks after his best interests, himself and his nearest of kin, and tries to develop his innate abilities and survive the best way he can. As a social being he develops a caring approach to other people. He develops an interest in his neighbour and cares about how his neighbour is. If his neighbour feels pain he feels pain too.

[893]A human being realises his fulfilment only when he engages in society and cares about his fellow man. This budget does not tackle the inequalities that are rampant in our society. It does not show care. We must change.

The people expect much of Members of the Oireachtas. They do not want the banks to make decisions for them. They would not like the Europeans to make their decisions for them either. They would like us to run this country, to represent them, to behave in an ethical manner and to give a damn.

Deputy Richard Boyd Barrett: As is traditional in the worst of Irish politics, the Government tried to be clever with the budget. There may have been a few smug smiles as the Minister announced tokens to make the budget look as if it was fairer, but they were just tokens, or tricks of the eye.

The budget, as announced yesterday and today, is cruel and stupid. The Government made a cold and calculated decision to attack the poor, the young, the vulnerable and struggling families to protect bankers and the super-wealthy. It is as simple and as obscene as that.

It is immoral that any Government would choose to attack children, schools, young people, students, lone parents, the disabled and families dependent on rent allowance. If one were to put together a comprehensive list of the most vulnerable sectors of society to attack them, one could not do a more shameful and vindictive job than the Government has done in this budget.

To hit the allowances of young disabled people is obscene. To hit the elderly and the poor who depend on the fuel allowance will mean the difference between life and death for some of those people this winter. That is not rhetoric, as the Minister knows. There were nearly 2,000 winter-related deaths among the elderly last year. The cut in the fuel allowance means more people will die. To cut the capitation grant for schools by 6% between now and 2015 is shameful when we hear pious words about children being our future and investing in education. To hit lone parents, when every study shows that lone parents in our society suffer disproportionately from poverty, is shameful. The change in the income disregard makes a mockery of the Government’s claim to want to incentivise work. It is a direct disincentive to lone parents to work and another measure which will drive children into poverty, when child poverty is rising.

To hit rent allowance is a headline social welfare cut, despite all the Government assertions that it is not hitting headline social welfare payments. For 96,000 people in receipt of rent allowance, most of whom have lost their jobs through no fault of their own, that is a nasty regressive cut which will drive more people into poverty. To hit students with higher registration fees and to cut grants makes a mockery of all the talk about a knowledge economy. Hundreds, if not thousands, of students from less well-off and struggling families will be forced out of third level education as a result of that. To hit back-to-school clothing and footwear allowances and back-to-education allowances means hitting the poor and the vulnerable.

Let us not forget about the slaughter of jobs. The Government slogan was “jobs and fairness”, but one of the few concrete measures in the jobs area is to ratchet up the massacre of public sector jobs. Fianna Fáil said 17,000 jobs would go in the public sector. That was bad enough. The programme for Government promised that 25,000 jobs would be cut. Another trick has been played, the two figures have been added together and the figure will now be 37,000. That will mean a collapse of vital services. Already, 6,000 people have gone from the health services and another 7,000 will go by 2015. It is dishonest for a Government to pretend there is not a direct relationship between the agenda of cutting jobs and the closure of accident and emergency units, public nursing homes and local hospital services.

[894]It is outrageous but not surprising that Fine Gael would mount such an attack on the poor, the vulnerable, working people and public services, but it is beyond belief that the Labour Party would put its name to such cruel and senseless measures as these. Out of a total of €1.4 billion in spending cuts announced by the Minister for Public Expenditure and Reform yesterday, €811 million were directed at the poor and the vulnerable. Do Labour Party Deputies, and the Labour Party Minister who is in the Chamber, believe they would have been elected and be sitting here now if they had told the people before the election that they were contemplating such vicious measures directed at the disabled, the young, lone parents and poor families? They know they would not. They posed as champions of the less well-off, got their votes on that basis and, in double quick time, stabbed the people who voted for them in the backs. They should be ashamed of themselves.

Having savaged the poor and vulnerable with cuts yesterday, we moved today to another round of unjust and senseless attacks in the form of regressive taxes and charges. The bulk of what the Government proposed today, notwithstanding a few tokens, are taxes on ordinary working people which will further hit their incomes. The household charge will raise €160 million, VAT increases of €500 million and excise duties of €178 million. The bulk of this revenue will come from ordinary families.

The household charge, a poll tax, is a regressive stealth charge. It is shameful and more of the same stuff. Our taxation system is one that says it is acceptable for people on low and middle incomes to pay the same as multimillionaires. Is that right, is it just or is it about equality? It is not. It is part of an agenda that will lead to the increase of those charges and the introduction of water charges in the coming years.

The increases in VAT are stupid and regressive. They will depress demand further and put more pressure on the tens of thousands of small businesses who are hanging on for dear life and trying to stay in business. The increased VAT will further depress demand and mean that poor families with limited and declining incomes will buy less in the shops. Not only is it unfair and unjust, it probably will not raise one single cent. The Government can increase VAT and hope to raise extra revenue when an economy is growing, but when it is declining and incomes are contracting, people spend less. Therefore, the Government will get nothing back from this measure which will just hit at the poor.

The proposed changes in motor tax make a mockery of all previous assertions about incentivising people in seeking to have a low carbon economy. They increase motor tax for people who accepted the word of previous Governments that they were serious about moving to a low carbon economy. The Government is now ratcheting up these taxes again. The increase in the carbon tax means increases in the price of oil and gas for home heating for the poor and less well-off, which following the fuel allowance cuts will lead to more winter deaths and greater suffering for the elderly, the least well-off and the vulnerable in society. It is pathetic that the Government has tried to gloss over this by saying this will not happen until May next year; therefore, we will not have more deaths this winter but will have more at the end of 2012 and 2013.

When the Government is faced with such criticism from this side of the House, it wrings its hands and states it does not like this any more than we do and that it wishes it did not have to do it. It states it hurts it as much as it hurts us, but that it has no choice and that there is no alternative. Of course, there are alternatives. There are choices, as the Government knows well. Next year and for the following ten years some €3 billion will be paid into the toxic casino bank that is Anglo Irish Bank. An estimated €10 billion will be paid in interest repayments next year on the debts run up by developers, bankers and bondholders. These are the same [895]developers that the Government, via NAMA, is paying €200,000 a year or to whom it is paying hundreds of millions to lease properties such as the National Convention Centre or the NTMA building, or they are the bankrupt landlords and developers to whom it plans to pay more public money to lease their properties and put them back in business, or they are the poor banking executives who must survive on a meagre salary of €500,000 a year. These same bank executives preside over banks that are stuffed with public money but which continue to starve the economy of the credit it needs and continue to screw mortgage holders to the wall.

There are alternatives, but the Government chooses not to take them. It should stop paying off the bondholders and propping up toxic casino banks, whether in Ireland or elsewhere in Europe. It should cancel the debt, as it is not ours. However, it states that if it does this, there will be no money in ATMs because the European Union will cut us loose. Perhaps the Taoiseach and the Minister have not noticed that the Union is in bits and that its strategy is failing. Even its beloved markets no longer believe it and they are downgrading it and the likelihood of it being able to pay off its debts. They can see what anybody can see, that austerity is crippling the European economy, which means that growth projections for this economy and across Europe are falling. This means we cannot pay back the debts. Why, therefore, do we slavishly submit to the diktats of the markets and the troika?

There is a simple alternative, namely, to tax the wealthy, but this is something the Government resolutely refuses to do. As we set out in our pre-budget submission, the CSO — perhaps the Government will rubbish its figures also — has stated the top 5% of the population has €220 billion in personal wealth. We suggest the Government should take just €10 billion from them. This is an emergency. If everybody else can be attacked in it, why can we not just impose a 5% wealth tax on the people in question? We propose a 50% tax on all incomes over €100,000, a 60% tax on incomes over €150,000 and a 70% tax on incomes over €200,000. The Government’s figures which we believe are conservative indicate this would raise €1.1 billion. Why do we not take the properties from the bankrupt NAMA developers and put them in the hands of local authorities and begin a major social housing construction programme in order that we would no longer pay out €500 million a year in rent supplements to private landlords? In turn, that would generate approximately €300 million or €400 million in rental revenue. That action alone which could be accomplished in one year would save €750 million for the State.

The choice the Government has made is to protect the rich and attack the vulnerable in society. We say there is an alternative, but it seems that when governments fail, it takes people power of the sort seen in Greece, Portugal and elsewhere to bring that alternative to pass.

Deputy Shane Ross: There are elements of the budget which everybody in the House will welcome such as the universal social charge tax relief, income tax stability, research and development relief and mortgage interest relief, which mark a genuine effort by the Government to give some solace to people who are afflicted or vulnerable. I sometimes, but rarely, sympathise with the plight of the Government because, as it has stated regularly, with more than an element of truth, it has found itself in an economic hole which it is true it has inherited. The problem is that having landed in that hole, it seems to have taken to it and be as happy as a pig in the unmentionable commodity mentioned by Deputy Mattie McGrath in the House a short time ago.

The Government appears to have taken on the mantle of the conservative policies of Fianna Fáil and others and addressed it with relish. It seems that what Deputy Boyd Barrett has said is true, that the diktat is coming from elsewhere; it is not just coming from the Department of Finance, as is traditionally the case, or the last Government or the European Union. A series of strong, external forces are dictating internal policy to a degree that is totally unacceptable.

[896]There are alternatives. While I do not agree with the one suggested by Deputy Boyd Barrett, there are several others. This is a conservative budget ad nauseam. A predecessor of the Taoiseach, Mr. Liam Cosgrave, said that when one was in a hole, one should stop digging. That is the policy the Taoiseach should have adopted. He should have addressed the issues in a far more radical way and not taken the old traditional routes which may — I do not believe they will — get us out of the hole to which he refers so frequently.

What is lacking in the budget more than anything is vision. I heard the Taoiseach say in his broadcast the other night that he wanted to see Ireland retrieve its sovereignty by 2015. It seems that is the last thing it will achieve in 2015 because this budget will take us on to a series of budgets which will lead us into what we will see agreed this weekend, a form of fiscal unity. We are going to be under the hammer of the troika for a few years, but we will then face fiscal unity which is, by definition, a sacrifice of economic sovereignty and independence. That is where we are headed, but let us not aspire to it but move directly in the opposite direction. What I would like to have heard from the Minister today was that he had a vision of where we would be when his series of budgets was completed in 2015 or 2016.

Deputy Mattie McGrath: In the poorhouse.

Deputy Shane Ross: That is true because there was no vision. There was no idea of where we would be after two or three austerity budgets. What we do know is this: we know the budget deficit will be 3% of GDP and that we will still be in the eurozone, if the Minister gets his way. We also know — I agree with my friends on these benches on this point — that unemployment will still be at an unacceptable level. According to the Department of Finance’s forecasts, it will be at the level of 12% in 2015. What does that say about the Government’s jobs policy? It is hot air. Jobs will not be created by this budget, except in a tiny way. Everything being done in the budget and in other measures is peripheral. It makes a good impression. The impression the Minister gave today with this budget was very positive and very clever. All the good things were in front. Yesterday, the Minister for Public Expenditure and Reform, Deputy Howlin, produced a lot more of the negative things. When one actually examines them, the reality is that very few jobs will be created. The Department of Finance says that also, and its figures do not really take into account any flood of emigration which is almost certain to happen.

The vision we see here will include educational standards going down because of cuts in education and third level education not being open to everybody because of the measures introduced yesterday, but nevertheless the budget deficit will still be 3% of GDP and we will still be part of the euro. That really is an extraordinary aspiration. If the standard of living is to go down, unemployment is to go up and educational standards are to fall, we will still be able to say the budget deficit will be 3% of GDP.

I wonder whether it will be because one of the most significant things today — it was referred to by Deputy Pearse Doherty — was that the Minister very quietly demoted and reduced his predictions for growth next year. From being above 2% at one stage, it went down to 1.6% in October and to 1.3% today. That is a very high figure because the figure from the ESRI the other day was 0.9% and the figure from the OECD was 1%. The Department of Finance, for reasons which are difficult to explain, consistently produces optimistic figures on the growth side. That is obviously convenient if one is trying to sell and produce a budget of this sort but it means that somewhere down the line, in the next two or three budgets, the austerity will be greater again and greater than predicted.

[897]This budget depends not only on growth rates which are much higher than this but on the continuing boom in exports. That is extraordinarily optimistic also. It is fair to say that the main outlets for our exports are either in recession or are heading for recession. The United Kingdom is undoubtedly heading for recession while the best prediction for the euro area is 0.3%. That is not a particularly optimistic outlet. Admittedly, the United States may expand in the next two years but the other main outlets for our exports are in recession. To hold out the prospect that somehow we as a nation will successfully and uniquely export to nations which are in recession is really living in economic cloud-cuckoo-land. That is the main difficulty with this budget. The growth figure is wildly optimistic and the export projections on which it is built are also wildly optimistic.

I do not believe we are heading for a situation in 2015 which the Minister could paint today. In reality, this budget takes us on a road to poverty, destitution and a standard of living which is unacceptable and which he could not spell out in his budget today because if he had done so, it would have been very difficult for the Labour Party backbenchers to accept.

There are measures which could have been taken. I do not wish to be negative but I do not understand what has happened to the apparent cull of the quangos. The rhetoric about the quangos before the election — I do not wish to score political points but this is very important — was extraordinarily strong, populist, realistic and practical. Does the Taoiseach remember the Fine Gael document, entitled Streamlining Government? I will not remind him of things which are embarrassing because I do not believe that is politics and it is not useful. However, it is useful to remind him of a few things in it. There was a determination and theme in it which talked about cutting costs. It talked about the 2,200 directors of quangos and about removing them. It also talked in fine rhetoric about Ireland having become the land of 1,000 quangos.

Deputy Mattie McGrath: And growing.

Deputy Shane Ross: Now, in a great flurry, we are talking about a reduction of only 50. Some of those are merely mergers, not to mention the ones created. The reduction in the number of quangos will be minuscule. However, there are opportunities here, which I could outline to the Taoiseach and about which I have talked in the House, to reduce the number of quangos to under 100 and the number of directors of quangos to certainly well under current 2,200. That would at least be a symbol of the Taoiseach’s determination to cut out the waste in this budget.

This is conventional economics on a level which is depressing because it is leading us to a situation which will only make the fundamental economic indicators much worse than they were. There are no new big ideas in this budget and I am very depressed that it is happening in the same week the Taoiseach will go to Europe to sort out a much bigger problem.

I suggest the Taoiseach goes to Europe not overshadowed by Brussels, that he puts the fundamental problem behind this budget on the agenda, that is, the Irish debt, and that he looks for a write-off of the Irish debt. I want the Taoiseach to spoil the party. I do not want him to go to Europe and be some sort of lap-dog to the big powers. I want him to say he is Irish, we are in trouble, which they landed us in, and that he is going to spoil their party unless the write-off of the debt is not only on the agenda but is achieved. If that is done, this budget will, thankfully, be irrelevant and the Taoiseach will be able to come back next week and say the future is brighter and that he will produce a better budget for the Irish people.

Sitting suspended at 6.40 p.m. and resumed at 7.10 p.m.

An Ceann Comhairle: I call on the Minister of State at the Department of the Taoiseach, Deputy Paul Kehoe, to move a motion in respect of the arrangements for dealing with the financial resolutions.

Minister of State at the Department of the Taoiseach (Deputy Paul Kehoe): I move:

That, notwithstanding anything in Standing Orders, the financial motions by the Minister for Finance shall, for the purpose of debate, be moved and grouped together in accordance with the following schedule and the proceedings thereon, and on any amendments thereto, shall, in the case of each resolution or group, as appropriate, be brought to a conclusion by one question which shall be put from the Chair not later than the times indicated as follows: Resolution No. 1, to conclude after 10 minutes; Resolution No. 2, to conclude after 15 minutes; Resolution No. 3, to conclude after 15 minutes; Resolution No. 4, to conclude after 20 minutes; Resolution No. 5, to conclude after 10 minutes; Resolution No. 6, to conclude after 10 minutes; Resolution No. 7, to conclude after 15 minutes; Resolutions Nos. 8 to 12, to conclude after 30 minutes.

Deputy Seán Ó Fearghaíl: Could a copy of the proposals be circulated to all Members for our convenience?

Deputy Sean Fleming: Or be left available.

An Ceann Comhairle: Could we agree the motion first?

Deputy Joe Higgins: No.

Deputy Mattie McGrath: We must see what we are reading. One should never agree to something that one has not read.

Deputy Paul Kehoe: I have met the Opposition Whips and the Government is being generous with time. The proposal brings us up to approximately 11.20 p.m., at which point the final vote will be called. If a vote is called on this motion, I will need to revise the schedule and reduce the number of minutes per resolution.

Deputy Seán Ó Fearghaíl: We are happy with the proposal and the Whips had a successful meeting, but we are looking for a copy of the document for the convenience of Members.

Deputy Paul Kehoe: I only have my own copy.

An Ceann Comhairle: I must get this motion agreed. Deputy Higgins is objecting.

Deputy Joe Higgins: Yes. I appreciate that much business needs to be done, but the time frame for some of the resolutions is ten and 15 minutes. I will agree to the motion provided that an undertaking is given to the effect that the opening contributions of the Government and the two main Opposition parties will allow sufficient time for the United Left Alliance and Independent Deputies to make short contributions also. Could we have that assurance from the Chief Whip?

An Ceann Comhairle: The procedure for these motions is similar to that of Committee Stage on a Bill.

[899]Deputy Joe Higgins: Exactly, but one or two Deputies could talk out the entire time and not give the rest of us an opportunity.

An Ceann Comhairle: I hope everyone will agree to the understanding. We are wasting time.

Deputy Paul Kehoe: Absolutely. I explained at the Whips’ meeting that these resolutions must be passed before midnight.

Deputy Mattie McGrath: We know.

Deputy Paul Kehoe: If we continue to waste time, I will need to revise the schedule during the next couple of minutes. I understand Deputy Higgins’s concerns. This is a Committee Stage resolution and I understand that the Ceann Comhairle will give everyone an opportunity to speak in so far as it is possible.

An Ceann Comhairle: I will endeavour to be as fair as possible to everyone.

Deputy Joe Higgins: I agree on the basis that the understanding is adhered to by all parties.

An Ceann Comhairle: Could the Minister of State circulate the document, please?

Question put and agreed to.

The Taoiseach: I move:

(1) THAT for the purposes of the tax charged by virtue of section 72 of the Finance Act 2005 (No. 5 of 2005), that Act be amended, with effect as on and from 7 December 2011, by substituting the following for Schedule 2 to that Act (as amended by section 16 of the Finance Act 2009 (No. 12 of 2009)):

“SCHEDULE 2

Rates of Tobacco Products Tax (With effect as on and from 7 December 2011)

Description of Product	Rate of Tax
Cigarettes .... .... .... .... .... .... .... .... .... .... .... .... .... ....	€192.44 per thousand together with an amount equal to 18.03 per cent of the price at which the cigarettes are sold by retail
Cigars .... .... .... .... .... .... .... .... .... .... .... .... .... .... ....	€271.337 per kilogram
Fine-cut tobacco for the rolling of cigarettes .... .... .... ....	€228.968 per kilogram
Other smoking tobacco .... .... .... .... .... .... .... .... .... ....	€188.243 per kilogram

”.

(2) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

This resolution provides for excise duty increases on tobacco products with effect from midnight tonight. The increase amounts to 25 cent, inclusive of 21% VAT, on a pack of 20 cigarettes with pro rata increases on other tobacco products. The price of a pack of 20 cigarettes in the most popular price category will increase to €8.90. The excise duty component of this price will be €5.45 and the total tax, inclusive of current VAT, will be €7.00. An additional impact will arise from the VAT increase on 1 January.

[900]Ireland has the dearest cigarettes in the EU, which reflects the long-standing commitment by successive Governments to using taxation as an instrument to discourage consumption. This latest increase will ensure that tobacco tax continues to play that important role. Unfortunately, the high prices and taxes also make Ireland an attractive location for cigarette smugglers. The Revenue Commissioners are involved in a major programme of enforcement action against the illicit trade and have achieved notable successes in seizing illegal products and in bringing people involved in this criminality before the courts. This intensive work will continue and will have to look in particular to preventing a situation of further substitution away from taxed cigarettes by consumers.

This measure is estimated to yield €41 million in a full year.

Deputy Sean Fleming: I support the Government’s resolution. Everyone knows this is as much about health issues as it is about financial issues. Had the Government gone further, we would have supported it. Some 25 cent will be put on a pack of 20 cigarettes, the standard price of which is approximately €8.65. This is dear compared with other European countries, but it is not half dear enough in view of the damage cigarettes cause to health. We support this modest proposal.

Deputy Pearse Doherty: The Taoiseach mentioned that the increase was due to health concerns. Perhaps he will clarify when those concerns were adopted by both Government parties. I do not have their pre-election programmes before me and I do no know whether they entered into this commitment during the election.

It is a revenue-raising measure. While their are health grounds for the increase, it is not one of the measures that Sinn Féin submitted in our pre-budget submission, as it will negatively affect the finances of those who will not give up cigarettes. I am disappointed, given that approximately €5 billion is lost to the black economy, particularly in terms of cigarettes. This issue has not been tackled. Time and time again, the business community has——

An Ceann Comhairle: I must interrupt the Deputy, although I do not like doing it. Only matters strictly relevant to the resolution can be discussed.

Deputy Pearse Doherty: It has to do with the increase.

An Ceann Comhairle: Please do not stray off topic.

Deputy Pearse Doherty: I will give the Ceann Comhairle a commitment.

An Ceann Comhairle: Other Members wish to speak.

Deputy Pearse Doherty: I will be brief. I have nearly concluded. Of the €5 billion lost, much owes to the illegal importation and black market sale of cigarettes. The Government has not tackled this issue despite this measure to raise revenue and protect health. People are buying cigarettes on Dublin’s streets and in towns and villages at half the price charged by retailers. Even a small proportion of the €5 billion would save the State money. This could be done by increasing the number of people working in customs. It would have a greater impact on smokers’ health. Regardless of this increase, they will continue to use the black market, which the budget is leaving untouched.

Deputy Joe Higgins: The last time I was a Deputy, the parties in government engaged in this ritual hypocrisy each year by introducing more taxes on cigarettes and pretending that it was [901]a health measure. The Taoiseach’s predecessor, Mr. Bertie Ahern, used to go on about it ritually. This is a revenue raising measure of some €45 million, the bulk of which will come from working class people and poor people. Unfortunately, smoking causes severe damage and should be tackled on a much harder scale than any Government has done until now, including a complete ban on advertising. However, if the Government was serious that this was a health measure, the revenue would be ring-fenced specifically for health issues related to smoking diseases and prevention. That is not the case. I am in favour of a major campaign to convince people not to smoke. I am not in favour of hypocritically putting another tax, under false pretences, on those who are among the poorest in our society. Therefore, I oppose this motion.

Deputy Seán Ó Fearghaíl: I am happy to support the motion although I see a lot of sense in what Deputy Higgins said, that funding from this source should be ring-fenced for the health needs of people who are damaged by tobacco products. Many members of the public will be disappointed at the failure of this budget to address the issue of below cost selling of alcohol and the ready availability of low-cost alcohol through the chain supermarkets to young people in particular. In his Budget Statement, the Minister for Finance made some reference to this and talked about the report being prepared by the Minister of State, Deputy Róisín Shortall. A number of reports have been produced on this subject and perhaps the Taoiseach has an opportunity, when responding, to indicate what timeframe he is considering——

An Ceann Comhairle: We are only dealing with cigarettes at this point.

Deputy Seán Ó Fearghaíl: I am suggesting there is a mistake in not including alcohol as well, particularly the alcohol products——

An Ceann Comhairle: We can only deal with what is here.

Deputy Seán Ó Fearghaíl: ——being sold at low prices, which are seriously detrimental to public health.

An Ceann Comhairle: We have three minutes left on this motion. I ask Deputy Buttimer to stick to cigarettes.

Deputy Jerry Buttimer: I support the Taoiseach. Despite what Deputy Higgins is saying, this measure is sending a strong message regarding health promotion by this Government. Deputy Sean Ó Fearghaíl was previously Chairman of the Oireachtas Joint Committee on Health and Children. If he takes the Minister’s Budget Statement to the House to the next conclusion, he should consider that the health promotion aspect regarding below cost selling is being pursued by the Minister of State, Deputy Shortall, and that below cost selling was introduced by the leader of Fianna Fáil. This has led to an increase in alcohol sales and an increase in the misuse of alcohol in our society. It would be more in our line to work together on alcohol misuse and to pioneer the issue, as we are doing in the Oireachtas Joint Committee on Health and Children. The measure on tobacco sends a strong signal that the Government is intent, regardless the guise in which Deputy Higgins is masquerading, on the point that smoking is wrong. I challenge Deputy Higgins. Would society be better if people did not smoke? The answer is that we would, from the perspective of health promotion, work and recreation. It is important that Members of the Opposition, who come in and promulgate a philosophy and ideology that is outdated and warped, stand behind the Government and the people.

Deputy Joe Higgins: Whose ideology is warped?

[902]Deputy Jerry Buttimer: Deputy Higgins should listen for once. He does not know everything. He may think he knows everything but he does not so he should listen.

Deputy Michael Healy-Rae: He is entitled to his opinion.

Deputy Jerry Buttimer: He is but he should listen. Deputy Mattie McGrath should sit down. We have heard him all day.

Deputy Mattie McGrath: Excuse me, how dare Deputy Buttimer say that. I asked the Ceann Comhairle to speak long before Deputy Buttimer came in. Deputy Buttimer is not in school now.

Deputy Jerry Buttimer: Regarding the health promotion of the citizens of our country, it behoves all of us to eliminate the damage to public health, and a 25 cent increase in tobacco is a significant step.

Deputy Mattie McGrath: Gay Mitchell was a waffler as well.

An Ceann Comhairle: I call Deputy Mattie McGrath.

Deputy Mattie McGrath: I indicated long before Deputy Buttimer.

An Ceann Comhairle: We go to both sides of the House. There is no panic.

Deputy Mattie McGrath: I know that but the Ceann Comhairle is always leaning to one side. I am afraid his chair will capsize.

An Ceann Comhairle: I did not go to one side. Deputy Mattie McGrath should withdraw that remark.

Deputy Mattie McGrath: That is a fact.

An Ceann Comhairle: Deputy Mattie McGrath should withdraw that remark.

Deputy Mattie McGrath: I have people here who saw me indicate. I indicated long before Deputy Buttimer. I will not be told to shut up by Deputy Buttimer. I would love to see the money ring-fenced for health, especially for people suffering from poisoning from smoking and indulging in those practices. I would like to see this Government removing the fear and scaremongering about which nursing homes it is going to close. There are lists every day and there will be a different list tomorrow. They should put the money into those homes to keep them open for elderly people who are suffering from lung diseases as a result of smoking.

Deputy Peter Fitzpatrick: Coming from a sporting background, 25 cent is not enough. The number of young people who suffer from ill health as a result of smoking is a disgrace and I give my full support to the Government.

Deputy Michael Healy-Rae: I would prefer if no one ever smokes again but unfortunately that is not the real world in which we live. I am against this increase because it is a further attack on poorer families and they will be hit by this further taxation.

Question put.

[903]The Dáil divided: Tá, 136; Níl, 23.

Tá
Bannon, James.	Barry, Tom.
Breen, Pat.	Browne, John.
Bruton, Richard.	Burton, Joan.
Butler, Ray.	Buttimer, Jerry.
Byrne, Catherine.	Byrne, Eric.
Calleary, Dara.	Cannon, Ciarán.
Carey, Joe.	Coffey, Paudie.
Collins, Áine.	Collins, Niall.
Conaghan, Michael.	Conlan, Seán.
Connaughton, Paul J.	Conway, Ciara.
Coonan, Noel.	Corcoran Kennedy, Marcella.
Costello, Joe.	Coveney, Simon.
Cowen, Barry.	Creed, Michael.
Daly, Jim.	Deasy, John.
Deenihan, Jimmy.	Deering, Pat.
Doherty, Regina.	Donnelly, Stephen S.
Donohoe, Paschal.	Dooley, Timmy.
Dowds, Robert.	Doyle, Andrew.
Durkan, Bernard J.	English, Damien.
Farrell, Alan.	Feighan, Frank.
Ferris, Anne.	Fitzgerald, Frances.
Fitzpatrick, Peter.	Flanagan, Charles.
Flanagan, Terence.	Fleming, Sean.
Gilmore, Eamon.	Grealish, Noel.
Griffin, Brendan.	Halligan, John.
Hannigan, Dominic.	Harrington, Noel.
Harris, Simon.	Hayes, Brian.
Hayes, Tom.	Heydon, Martin.
Howlin, Brendan.	Humphreys, Heather.
Humphreys, Kevin.	Keating, Derek.
Keaveney, Colm.	Kehoe, Paul.
Kelleher, Billy.	Kelly, Alan.
Kenny, Enda.	Kenny, Seán.
Kirk, Seamus.	Kitt, Michael P.
Kyne, Seán.	Lawlor, Anthony.
Lowry, Michael.	Lynch, Ciarán.
Lyons, John.	McCarthy, Michael.
McConalogue, Charlie.	McEntee, Shane.
McFadden, Nicky.	McGinley, Dinny.
McGrath, Finian.	McGrath, Mattie.
McGrath, Michael.	McGuinness, John.
McHugh, Joe.	McLoughlin, Tony.
McNamara, Michael.	Maloney, Eamonn.
Martin, Micheál.	Mathews, Peter.
Mitchell O’Connor, Mary.	Mitchell, Olivia.
Moynihan, Michael.	Mulherin, Michelle.
Murphy, Catherine.	Murphy, Dara.
Murphy, Eoghan.	Nash, Gerald.
Naughten, Denis.	Neville, Dan.
Nolan, Derek.	Nulty, Patrick.
Ó Cuív, Éamon.	Ó Fearghaíl, Seán.
Ó Ríordáin, Aodhán.	O’Dea, Willie.
O’Donnell, Kieran.	O’Donovan, Patrick.
O’Dowd, Fergus.	O’Mahony, John.
O’Reilly, Joe.	O’Sullivan, Jan.
O’Sullivan, Maureen.	Penrose, Willie.
Phelan, Ann.	Phelan, John Paul.
Pringle, Thomas.	Quinn, Ruairí.
Rabbitte, Pat.	Reilly, James.
Ring, Michael.	Ross, Shane.
Ryan, Brendan.	Shatter, Alan.
Sherlock, Sean.	Shortall, Róisín.
Smith, Brendan.	Spring, Arthur.
Stagg, Emmet.	Stanton, David.
Timmins, Billy.	Troy, Robert.
Tuffy, Joanna.	Twomey, Liam.
Varadkar, Leo.	Wall, Jack.
Walsh, Brian.	White, Alex.

Níl
Adams, Gerry.	Boyd Barrett, Richard.
Collins, Joan.	Colreavy, Michael.
Crowe, Seán.	Daly, Clare.
Doherty, Pearse.	Ellis, Dessie.
Ferris, Martin.	Flanagan, Luke ‘Ming’.
Fleming, Tom.	Healy, Seamus.
Healy-Rae, Michael.	Higgins, Joe.
Mac Lochlainn, Pádraig.	McDonald, Mary Lou.
McLellan, Sandra.	Ó Caoláin, Caoimhghín.
Ó Snodaigh, Aengus.	O’Brien, Jonathan.
Stanley, Brian.	Tóibín, Peadar.
Wallace, Mick.

Tellers: Tá, Deputies Paul Kehoe and Emmet Stagg; Níl, Deputies Joe Higgins and Aengus Ó Snodaigh.

Question declared carried.

Minister of State at the Department of the Taoiseach (Deputy Paul Kehoe): I move:

That, notwithstanding anything in Standing Orders, or the Order of the Dáil of today, the debate on the following resolutions and on any amendments thereto shall conclude after the times indicated as follows: Resolution No. 4 to conclude after 20 minutes; and Resolution No. 5 to conclude after ten minutes.

An Ceann Comhairle: Is that agreed?

Deputy Billy Kelleher: No.

Deputy Timmy Dooley: We could not agree to that.

Deputy Micheál Martin: The VAT increase is probably the most substantive element of this budget in terms of taxation measures. To allow only 20 minutes for discussion on that issue is ridiculous and farcical. It is not acceptable.

Deputy Caoimhghín Ó Caoláin: The 30 minutes previously allocated was the minimum expected in terms of addressing a proposal that seeks to impose an extra 2% on the standard rate of value added tax. This proposal is outrageous. If one were to total the minutes allocated, a little more than two hours in total has been allowed. We are sitting until midnight and there is adequate time in the schedule already outlined and agreed to allow for any vote that might present. The Government can be sure some will.

Deputy Billy Kelleher: This is appalling.

Deputy Timmy Dooley: It is an outrageous attack on democracy.

[905]An Ceann Comhairle: I call Deputy Murphy.

Deputy Catherine Murphy: Even with the tentatively agreed timetable there was 40 minutes remaining between the final vote and midnight. Adequate time has been provided. As such we should not lose time on Financial Resolution No. 4, which deals with VAT. Discussion on that issue is likely to absorb more time. I ask that the time allocated for debate on that resolution be reinstated.

An Ceann Comhairle: Unless it is being withdrawn——

Deputy Paul Kehoe: I do not want to have to resort to coming into the House at 11 p.m. seeking that all remaining resolutions be taken together. We are wasting time.

Deputy Jonathan O’Brien: We are sitting until midnight.

Deputy Billy Kelleher: This is an attack on our basic rights. This is a democratic Chamber.

Deputy Paul Kehoe: The Whips——

An Ceann Comhairle: I ask Members to speak through the Chair.

Deputy Caoimhghín Ó Caoláin: Five resolutions are being taken together.

An Ceann Comhairle: We do not need a chorus. We are trying to sort something out.

Deputy Billy Kelleher: Someone, perhaps the Tánaiste, needs to defend our rights.

Deputy Jerry Buttimer: I will look after Deputy Kelleher.

An Ceann Comhairle: Please allow Deputy Kehoe to proceed.

Deputy Paul Kehoe: The Whips went through the resolutions and came up with a timeframe that will take us up to midnight. These resolutions must be passed before then. We are under time restriction. For this reason, I have had to reduce the time allocated to each resolution.

(Interruptions).

Deputy Timmy Dooley: These resolutions are being rail-roaded through.

(Interruptions).

An Ceann Comhairle: Deputy Dooley, please. We are wasting time.

Question put and agreed to.

The Taoiseach: I move:

(1) THAT in this Resolution —

“Act of 1952” means the Finance (Excise Duties) (Vehicles) Act 1952 (No. 24 of 1952);

“Act of 1992” means the Finance (No. 2) Act 1992 (No. 28 of 1992);

[906]

“Act of 2008” means the Motor Vehicle (Duties and Licences) (No. 2) Act 2008 (No. 24 of 2008).

(2) THAT as respects licences under section 1 of the Act of 1952 taken out for periods beginning on or after 1 January 2012, the Schedule (as amended by section 3 of, and the Schedule to, the Act of 2008) to the Act of 1952 be amended by substituting the following for Part I of that Schedule:

“PART I
1. Vehicles of the following descriptions not exceeding 500 kilograms in weight unladen:
(a) bicycles (other than bicycles which are electrically propelled), or tricycles (other than tricycles neither constructed nor adapted for use nor used for the carriage of a passenger), of which the cylinder capacity of the engine—
(i) does not exceed 75 cubic centimetres	€46
(ii) exceeds 75 cubic centimetres but does not exceed 200 cubic centimetres	€62
(iii) exceeds 200 cubic centimetres,	€82
(b) bicycles or tricycles which are electrically propelled,	€33
(c) vehicles with three or more wheels neither constructed nor adapted for use nor used for the carriage of a driver or passenger	€82.
2. (a) Vehicles (commonly known as dumpers) not exceeding 3 metres cubed in capacity, level loaded, designed and constructed for use on sites of construction works (including road construction and house and other building works) for the purpose of conveying concrete, rubble, earth or other like material where the person taking out the licence shows to the satisfaction of the licensing authority that the vehicle is used mainly on such sites, and on public roads only —
(i) for the purpose of proceeding to and from the site where it is to be used, and when so proceeding neither carries nor hauls any load other than such as is necessary for its propulsion or equipment, or
(ii) for the purpose of conveying concrete, rubble, earth or like material for a distance of not more than one kilometre to and from any such site,	€95
(b) Vehicles (commonly known as off-road dumpers) exceeding 3 metres cubed in capacity, level loaded, designed and constructed primarily for use on sites of construction works (including road construction and house and other building works) for the purpose of conveying concrete, rubble, earth or other like material and incapable by reason of their design and construction of exceeding a speed of 55 kilometres per hour on a level road under their own power and which are the subject of special permits under the Road Traffic (Special Permits for Particular Vehicles) Regulations 2007 (S.I. No. 283 of 2007),	€823
(c) Any vehicle (other than a vehicle constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement, by or in which goods being conveyed by such vehicle are processed or manufactured while the vehicle is in motion) constructed or adapted for use and used only for the conveyance of a machine, workshop, contrivance or implement (being a machine, workshop, contrivance or implement which is built in as part of the vehicle or otherwise permanently attached thereto) and no other load except articles used in connection with such machine, workshop, contrivance or implement or goods processed or manufactured therein including any vehicle (commonly known as a recovery vehicle) constructed or permanently adapted for the purposes of lifting, towing and transporting a disabled vehicle or for any one or more of those purposes,	€310
(d) Vehicles (commonly known as forklift trucks) designed and constructed for the purpose of loading and unloading goods where the person taking out the licence shows to the satisfaction of the licensing authority that the vehicle is used on public roads only—
(i) for the purpose of proceeding to and from the site where it is to be used for loading and unloading, and when so proceeding neither carries nor hauls any load other than such as is necessary for its propulsion or equipment, or
(ii) as part of the process of loading or unloading, for the purpose of conveying goods for a distance of not more than one kilometre to and from the site where it is loading or unloading	€95.
3. (a) Vehicles constructed or adapted for the carriage of more than 8 persons which are owned by a youth or community organisation and which are used exclusively by the organisation solely for the purpose of conveying persons on journeys directly related to the activities of the organisation and which have seating capacity for—
(i) more than 8 persons but not more than 20 persons	€143
(ii) more than 20 persons but not more than 40 persons	€188
(iii) more than 40 persons but not more than 60 persons	€375
(iv) more than 60 persons,	€375
(b)Vehicles (other than those referred to in subparagraph (c) of this paragraph) used as large public service vehicles within the meaning of the Road Traffic Act 1961, and having seating capacity for—
(i) more than 8 persons but not more than 20 persons	€143
(ii) more than 20 persons but not more than 40 persons	€188
(iii) more than 40 persons but not more than 60 persons	€375
(iv) more than 60 persons,	€375
(c) Vehicles which are large public service vehicles within the meaning of the Road Traffic Act 1961, and which are used only for the carriage of children, or children and teachers, being carried to or from school or to or from school-related physical education activities, and are either licensed under Article 60 of the Road Traffic (Public Service Vehicles) Regulations 1963 (S.I. No. 191 of 1963) as amended, or owned or operated by a statutory transport undertaking	€88.
4. Vehicles of the following descriptions:
(a) vehicles designed, constructed and used for the purpose of trench digging or any kind of excavating or shovelling work which—
(i) are used on public roads only for that purpose or the purpose of proceeding to and from the place where they are to be used for that purpose, and
(ii) when so proceeding neither carry nor haul any load other than such as is necessary for their propulsion or equipment,	€95
(b) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 50 kilometres per hour on a level road under their own power) and agricultural engines, not being tractors or engines used for hauling on roads any objects except their own necessary gear, threshing appliances, farming implements or supplies of fuel or water required for the purposes of the vehicles or agricultural purposes,	€95
(c) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 50 kilometres per hour on a level road under their own power and not being tractors in respect of which a duty is chargeable at the rate specified in subparagraph (b) of this paragraph) which are used for haulage in connection with agriculture and for no other purpose,	€95
where a tractor is fitted with a detachable platform, container or implement (being a platform, container or implement used primarily for farm work), goods or burden of any other description conveyed on or in the platform, container or implement shall be regarded for the purposes of this subparagraph as being hauled by the tractor,
(d) tractors of any other description,	€310
(e) vehicles designed, constructed or adapted as motor caravans (within the meaning of section 130 of the Finance Act 1992),	€95
(f) vehicles which are kept and used exclusively on an offshore island to which there is no direct road or bridge access from the mainland	€95
5. Vehicles (including tricycles weighing more than 500 kilograms unladen) constructed or adapted for use and used for the conveyance of goods or burden of any other description in the course of trade or business (including agriculture and the performance by a local or public authority of its functions) and vehicles constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement by or in which goods being conveyed by such vehicles are processed or manufactured while the vehicles are in motion:
(a) being vehicles which are electrically propelled and which do not exceed 1,500 kilograms in weight unladen,	€86
(b) being vehicles which are not such electrically propelled vehicles as aforesaid and which have a weight unladen—
(i) not exceeding 3,000 kilograms,	€310
(ii) exceeding 3,000 kilograms but not exceeding 4,000 kilograms,	€391
(iii) exceeding 4,000 kilograms but not exceeding 5,000 kilograms,	€505
(iv) exceeding 5,000 kilograms but not exceeding 6,000 kilograms,	€700
(v) exceeding 6,000 kilograms but not exceeding 7,000 kilograms,	€948
(vi) exceeding 7,000 kilograms but not exceeding 8,000 kilograms,	€1,193
(vii) exceeding 8,000 kilograms but not exceeding 20,000 kilograms,	€1,193 plus €281 for each 1,000 kilograms or part thereof in excess of 8,000 kilograms
(viii) exceeding 20,000 kilograms	€4,833.
6. Vehicles other than those charged with duty under the foregoing provisions of this Part of this Schedule:
(a)any vehicle which is used as a hearse and for no other purpose,	€95
(b) any vehicle (excluding a taxi) which is used as a small public service vehicle within the meaning of the Road Traffic Act 1961, and for no other purpose,	€88
(c) any vehicle which is fitted with a taximeter and is lawfully used as a street service vehicle within the meaning of the Road Traffic Act 1961, and for purposes incidental to such use and for no other purpose,	€88
(d) any vehicle which is—
(i) a new vehicle which is registered on or after 1 July 2008 under section 131 of the Finance Act 1992 as a category A vehicle or a category M1 vehicle, as the case may be, or
(ii) registered outside of the State on or after 1 January 2008 and which is subsequently registered in the State on or after 1 July 2008 under section 131 of the Finance Act 1992 as a category A vehicle or a category M1 vehicle, as the case may be, and which has an identification mark assigned by the Revenue Commissioners under section 131(5) of the Finance Act 1992 which signifies that the vehicle was first brought into use during or after the year 2008, and which has a CO2 emissions level—
(I) not exceeding 120 grams per kilometre,	€160
(II) exceeding 120 grams per kilometre but not exceeding 140 grams per kilometre,	€225
(III) exceeding 140 grams per kilometre but not exceeding 155 grams per kilometre,	€330
(IV) exceeding 155 grams per kilometre but not exceeding 170 grams per kilometre,	€481
(V) exceeding 170 grams per kilometre but not exceeding 190 grams per kilometre,	€677
(VI) exceeding 190 grams per kilometre but not exceeding 225 grams per kilometre,	€1,129
(VII) exceeding 225 grams per kilometre,	€2,258
(VIII) that—
(A) cannot be confirmed by the Revenue Commissioners by reference to the relevant EC type-approval certificate or EC certificate of conformity, and
(B) the Revenue Commissioners are not satisfied of by reference to any other document produced in support of the declaration for registration pursuant to section 131 of the Finance Act 1992,	€2,258
(e) subject to subparagraph (f), other vehicles to which this paragraph applies and which—
(i) have an engine capacity not exceeding 1,000 cubic centimetres,	€185
(ii) have an engine capacity exceeding 1,000 cubic centimetres but not exceeding 1,100 cubic centimetres,	€278
(iii) have an engine capacity exceeding 1,100 cubic centimetres but not exceeding 1,200 cubic centimetres,	€307
(iv) have an engine capacity exceeding 1,200 cubic centimetres but not exceeding 1,300 cubic centimetres,	€333
(v) have an engine capacity exceeding 1,300 cubic centimetres but not exceeding 1,400 cubic centimetres,	€358
(vi) have an engine capacityexceeding 1,400 cubic centimetres but not exceeding 1,500 cubic centimetres,	€384
(vii) have an engine capacity exceeding 1,500 cubic centimetres but not exceeding 1,600 cubic centimetres,	€478
(viii) have an engine capacity exceeding 1,600 cubic centimetres but not exceeding 1,700 cubic centimetres,	€506
(ix) have an engine capacity exceeding 1,700 cubic centimetres but not exceeding 1,800 cubic centimetres,	€592
(x) have an engine capacity exceeding 1,800 cubic centimetres but not exceeding 1,900 cubic centimetres,	€626
(xi) have an engine capacity exceeding 1,900 cubic centimetres but not exceeding 2,000 cubic centimetres,	€660
(xii) have an engine capacity exceeding 2,000 cubic centimetres but not exceeding 2,100 cubic centimetres,	€843
(xiii) have an engine capacity exceeding 2,100 cubic centimetres but not exceeding 2,200 cubic centimetres,	€885
(xiv) have an engine capacity exceeding 2,200 cubic centimetres but not exceeding 2,300 cubic centimetres,	€925
(xv) have an engine capacity exceeding 2,300 cubic centimetres but not exceeding 2,400 cubic centimetres,	€962
(xvi) have an engine capacity exceeding 2,400 cubic centimetres but not exceeding 2,500 cubic centimetres,	€1,005
(xvii) have an engine capacity exceeding 2,500 cubic centimetres but not exceeding 2,600 cubic centimetres,	€1,204
(xviii) have an engine capacity exceeding 2,600 cubic centimetres but not exceeding 2,700 cubic centimetres,	€1,251
(xix) have an engine capacity exceeding 2,700 cubic centimetres but not exceeding 2,800 cubic centimetres,	€1,294
(xx) have an engine capacity exceeding 2,800 cubic centimetres but not exceeding 2,900 cubic centimetres,	€1,342
(xxi) have an engine capacity exceeding 2,900 cubic centimetres but not exceeding 3,000 cubic centimetres,	€1,390
(xxii) have an engine capacity exceeding 3,000 cubic centimetres,	€1,683
(xxiii) is electrically propelled,	€157
(f) where a vehicle mentioned in subparagraph (e) which at the time of registration—
(i) was a new vehicle registered under section 131 of the Finance Act 1992 as a category A vehicle during the period beginning on 1 January 2008 and ending on 30 June 2008, and
(ii) in respect of which the rate of duty that would have applied to it under subparagraph (d)(i), if that subparagraph had been in operation when it was so registered and had applied to it, is less that the rate of duty specified in relation to it in subparagraph (e), then, the rate of duty as respects that vehicle for licences taken out on or after 1 July 2008 for periods beginning on or after that date shall be the rate of duty specified in subparagraph (d),
(g) where a vehicle was registered outside of the State during the period beginning on 1 January 2008 and ending on 30 June 2008 and is subsequently registered in the State on or after 1 January 2008 under section 131of the Finance Act 1992 as a category A vehicle or a category M1 vehicle, as the case may be, and which has an identification mark assigned by the Revenue Commissioners under section 131(5) of the Finance Act 1992 which signifies that the vehicle was first brought into use during the year 2008, then, notwithstanding any other provision of this paragraph, the rate of duty as respects that vehicle for licences taken out on or after 1 July 2008 for periods beginning on or after that date shall be chargeable at the lower of the rates of duty for the vehicle under subparagraph (d) or (e).”.

(3) THAT as respects licences under section 1 of the Act of 1952 taken out for periods beginning on or after the 1 January 2012, the Schedule to that Act be amended by substituting the following for paragraph 5 of Part II (as amended by section 4 of the Act of 2008) of that Schedule :

[910]

“5. Where the applicant for a licence under section 1 of this Act satisfies the licensing authority that the vehicle in respect of which the licence is sought was constructed more than 30 years prior to the commencement of the period in respect of which the licence is sought, the annual rate of duty shall, notwithstanding Part I of this Schedule, be —

(i) €24 where, apart from this paragraph, paragraph 1 of Part I of this Schedule would apply to the vehicle, and

(ii) €52 in respect of any other vehicle.”.

(4) THAT as respects licences under section 21 (as amended by section 5 of the Act of 2008) of the Act of 1992 taken out for periods beginning on or after the 1 January 2012, subsection (3) of that section be amended by substituting the following for that subsection:

“(3)(a) There shall be charged, levied and paid on a trade licence a duty of excise of—

(i) in the case of a licence for exhibition only on a motor-cycle, €55,

(ii) in the case of a licence for exhibition only on any other vehicle, €328.

(b) There shall be charged, levied and paid on a trade licence issued in place of a trade licence that has been lost, stolen or destroyed a duty of excise of-

(i) in the case of a licence for exhibition only on a motor-cycle, €35,

(ii) in the case of a licence for exhibition only on any other vehicle, €80.”.

(5) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

This resolution provides for the amendment of the Finance (Excise Duties) (Vehicles) Act 1952 and the Finance (No. 2) Act 1992, as extended by the Motor Vehicle (Duties and Licences) Acts 2008 in relation to rates of motor tax and fees for trade licence plates. I draw the attention of the House to a typographical error on page 4, section (3)(b)(iii) which should read “more” rather than “ntmore”.

The proposed increases announced today, the first in three years, are for 7.5% across most categories of vehicle. In the case of CO2 bands A-C flat rate increases apply. Band A increases from €104 to €160, band B from €156 to €225 and band C from €302 to €330. Trade plate licences will also increase by 7.5%. The new rates will apply to motor tax discs and trade licences taken out from tonight for periods beginning on or after 1 January 2012. The levels of increase in the lower CO2 bands are higher in percentage terms than the rest of the fleet, but must be viewed against a structure that left the bottom rates very low. It is also important to note that the structure of the banding and rates have not been changed and there remains a positive incentive to purchase low-CO2 cars.

While the introduction of the CO2 bands was designed to encourage a switch to lower emission vehicles, the changes were introduced on a second principle of revenue neutrality. It has always been the intention that the motor taxation system be kept under review to ensure that it meets the twin objectives of the CO2 system. The reality is that there has been a significant loss of motor tax income in recent years, as the number of vehicles taxed on the basis of CO2[911]emissions has increased by about 5% year on year. At the end of October, the CO2 fleet of 333,634 cars comprised 17.6% of all cars on the road. Of these, more than 294,000 are taxed at the three lowest bands. While this is welcome from an environmental perspective, it represented an increasing loss to the local government fund, receipts having been reduced from €1,060 million in 2008 to €1,024 million last year. It is estimated that income for this year would be in the region of €998 million if no increases in rates were applied.

It is important to note that the proceeds from motor tax have hitherto paid into the local government fund to support the funding of local authorities. The fund is used predominately to finance non-national roads and the general purpose needs of local authorities. However, in this instance, the increase in income from the proposed rate increases will go directly to the Exchequer. This is an immediate and necessary measure towards the reduction of the national debt. I should stress that the local government fund will retain the income from the existing rates of motor tax. The Government is committed to supporting the local government fund and it is proposed that the income from the introduction of the household charge will be directed to the fund.

It is anticipated that the proposed increases will raise some €47 million for the Exchequer over a full year. Any broader or longer-term changes to the motor taxation system will be considered as part of the review of the carbon banding of VRT and motor tax that will commence next year. It is my intention that the twin priorities of ensuring the protection of the tax base and the positive environmental impact of the existing basis of taxation will be carried through to the future.

This Financial Resolution will cease on the enactment of the relevant Bill, which will be presented to the House at the earliest possible date.

Deputy Niall Collins: Fianna Fáil opposes this resolution, which makes minimum financial sense and no environmental sense. The Government is tinkering around and adjusting the bands in respect of low emission cars, which have proven to be an outstanding success in terms of addressing issues such as climate change. The Government has been remiss in terms of addressing climate change. Despite that the issue is referred to in the programme for Government, Government has resiled from publishing any legislation or dealing with it on a comprehensive basis.

Also, the other measures in relation to car tax are anti-rural. Cars in rural Ireland are not a luxury, rather they are a necessity to allow people to get on with their everyday lives. This measure coupled with other issues such as the closure of Garda Stations, small schools, community and district hospitals, attacks on disadvantaged area aid to farmers, VAT on petrol——

An Ceann Comhairle: The Deputy must speak only to the motion.

Deputy Niall Collins: ——septic tank charges, cutbacks in school transport and increases in college fees will impact on rural Ireland. The Government is not focusing on climate change. It is hitting people in terms of transport, which is required to keep the economy moving.

Deputy Caoimhghín Ó Caoláin: Sinn Féin also opposes this proposal. It must recognised that once again that an easy option has been chosen by this Government. It is targeting motorists, not alone with this proposal in relation to motor tax but in terms of Financial Resolution No. 3, which deals with increases in excise duties on petrol and diesel. This is outrageous. There is no public transport provision across rural Ireland. People are dependant on a motor vehicle to access work. Work is crucial. This is akin to a tax on accessing one’s employment. It must be seen in that reality. It is penal and totally unacceptable. We must view this in terms of its [912]impact on transport costs. Any increase in terms of the transportation of goods and services will result in increased cost to the consumer. This is a regressive proposition, which does nothing to aid any turn in the economic condition with which we are currently coping. I vehemently oppose this resolution and ask that the Government withdraw it.

8 o’clock

Deputy Mattie McGrath: I also wish to voice my opposition to this measure. As other speakers have noted, it is completely anti-rural and is completely hostile to the green environment. I was one of the backbenchers who approached the late Brian Lenihan to introduce the scrappage scheme and I note this measure is completely anti-business. Moreover, a tax on trade plates is imminent. This measure constitutes a breach of faith with the hundreds of thousands of people who bought cars with lower emissions. While they may have availed of lower tax rates, they were encouraged to so do. This represents another body blow and another kick in the teeth for Joe Public and the ordinary voters to whom the Government made so many promises. They acted in good faith on foot of the previous Government’s initiative but this now has been thrown in their faces. Consequently, I oppose the measure.

Deputy Thomas Pringle: I also wish to oppose the proposed increase in car tax. It is a regressive measure, particularly in the constituency I represent, in which people are forced to travel to try to find work. However, the Government now proposes to increase the burden of taxation on them to make it more difficult for them. In a county such as Donegal that has virtually no public transport, cars are not a luxury. They are necessary for those who wish to try to find work or to improve their position but the Government is forcing this measure on them. Moreover, to add insult to injury, while car tax used to go towards funding local government, the proposal to add €47 million as a debt reduction measure is a waste of time that would not even meet a percentage point on the interest rates. This is an extremely regressive measure to which I am fully opposed.

Deputy Micheál Martin: Fianna Fáil is opposing this measure because of its lack of balance. While the Government is obliged to collect revenue, this is an extraordinary decision. In essence, a ground-breaking scheme, the purpose of which was to redirect people to purchase clean cars in order to improve the environment and to facilitate a sustainable environment in the future, has been declared a success. However, because it has been declared a success, it now is proposed to change it essentially to disincentivise people from buying cleaner cars and to incentivise them to buy dirtier cars in respect of emissions. In essence, this is the proposition that has emanated from the Government. Moreover, this action reflects a broader disdain for the climate change agenda by the Government, as well as a disdain in respect of environmental sustainability. Nothing else explains this decision, other than that broad philosophy that has underpinned the Government’s present approach.

When one considers the climate change agenda and the environmental issue, the sector that is causing Ireland the greatest challenges, and will continue to so do in the future, is the transport sector. As I sat around the Cabinet sub-committee on climate change, time and time again it was the transport sector that presented enormous challenges in meeting the Kyoto obligations or any subsequent European Union CO2 emission targets to which Ireland had signed up. This measure flies in the face of all the evidence on CO2 emissions and the efforts to improve Ireland’s position in respect of the transport sector in particular, as well as the broader environmental agenda. The measure also constitutes a betrayal of those people who took the Government and the State in good faith and who purchased cars with lower CO2 emissions. I acknowledge it was the Government of the day but there are some matters about which there should be a sense of honour and obligation to people.

[913]Deputy Mattie McGrath: Hear, hear.

Deputy Micheál Martin: If, two or three years ago, a Government told people to buy cars with lower emissions because it was the right thing for the environment and that it would incentivise them to do so and if a subsequent Government reverses the decision two years later and states it did not really mean it, essentially, those people will have been conned into taking decisions. It is an act of treachery by the State towards people, as well as a lack of faith. When this happens, no one will believe any Government from year to year with regard to fiscal or taxation measures it might introduce.

Deputy Mattie McGrath: Hear, hear.

Deputy Micheál Martin: The Taoiseach may smirk or nod and so on but it is a serious issue for the people concerned.

Moreover, it is a broader issue with regard to environmental sustainability. The only factor that really has allowed Ireland to come within its Kyoto targets is economic circumstances, the drop in global demand and so on. However, it will come around again and Ireland will be poorly placed to meet the targets set by the broader European Union regarding environmental targets and CO2 emissions. The one area in which Ireland can and must make up some ground is the transport sector. It is a given that Ireland must sustain and develop agriculture because it is at the heart of the productivity of the country in respect of exports etc. Consequently, the transport sector is the area in which Ireland can make radical change in people’s behaviour to effect change. This taxation measure put before Members will push the country into reverse in respect of the sustainable environment. It is a highly retrograde step and this is the basis on which Fianna Fáil opposes it.

An Ceann Comhairle: Five speakers are offering but three minutes remain. I do not know whether Members wish to allow the Taoiseach to reply.

Deputy Dessie Ellis: In recent months, the abolition of the scrappage scheme has resulted in a decline in the number of new cars coming on the roads. This measure is another disincentive to people to buy new cars or to acquire environmentally friendly cars. This measure will cost jobs. Garages nationwide have been promoting cars with low CO2 emissions to ensure that people bought them. Consequently, this will cost such garages money in advertising, jobs and in other areas and will have a knock-on effect. It is short-sighted to levy so much money in addition to the taxes people already are paying.

Deputy Timmy Dooley: As spokesperson on transport, I am deeply concerned by this measure. On entering Government, the Taoiseach stated he would do things differently and there would be a new way of doing business. However, the old reliables are being hit again. When this measure is taken into consideration with the increase of VAT on fuel, its impact will be to make the transport sector significantly less competitive than its counterpart in Northern Ireland. While Ireland’s exports have been doing well, the Taoiseach will recognise the requirements placed on Irish exporters to gain access to the markets of Europe are greater because of the cost associated with transportation. This transportation will now cost more because of the increase in VAT on fuel, as well as the increase in tax on vehicles.

The Irish Road Haulage Association put forward a good proposal for a rebate scheme. Its adoption would have demonstrated the Government’s capacity to move on an imaginative proposal to deal with the issue of marked diesel, the impact on revenue lost to the State as a result of the cleansing of such diesel and its unscrupulous sale throughout the country, as well as the environmental impact of the dirty by-product arising from the cleansing of that diesel. [914] However, the Government has done nothing to take on board this measure. It clearly has not accepted this worthwhile proposal, which would have had a meaningful impact on the environment and which had the capacity to raise additional revenue for the State. The Government has ignored this proposal and is pushing ahead with what I believe will be an anti-competitive measure and is going back to relying on the old reliables.

The Government talks a lot about tourism and the Minister referred to it in his budget speech today. This measure is an attack on tourism because as the Taoiseach is aware, many tourists travel through the country on coaches and buses. Representatives of the coach tour business have been in touch with me. They are dismayed by the proposal on VAT and its impact on their ability to disperse tourists around the country. In their view, it will force tourists to remain in the cities, rather than dispersing throughout the country. This approach is highly anti-competitive and will affect the capacity to get exports and products from this State to the central markets of Europe. Moreover, it will have a negative impact on tourism. For this reason, I appeal to the Government to withdraw this measure and find some other way to raise the funds concerned.

An Ceann Comhairle: As the time for this resolution has expired, I now am required to put the following question in accordance with the order of the Dáil——

The Taoiseach: May I take a minute to respond?

Deputy Timmy Dooley: The Taoiseach should be given a minute.

An Ceann Comhairle: Okay, once Members know the time has expired.

The Taoiseach: The Minister, Deputy Hogan, has already commenced a review of the national climate strategy. As set out, we intend to meet the Kyoto targets here but it is important to know what it is we want before we legislate for it. That is reason we wanted to have the issue of the policy matters discussed.

The current proposal on motor tax takes into account the CO2 emissions with the lowest rate still applying. The industry is not going back to the point of producing bad cars and the incentive that was there is still there and it is well within the scope to take something from that which will go towards reducing the national debt——

Deputy Mattie McGrath: It is a betrayal.

The Taoiseach: ——and the Government still continues to support the local government fund. The principle of protecting the environmental incentive will be an important element of the review of VRT and motor tax, which will be carried out by the Minister next year.

For the information of Members, the climate change conference currently being held in Durban is examining the next phase of the global effort to reduce emissions after the period covered by the Kyoto Protocol. The Minister, Deputy Hogan, is in attendance at it with his colleagues from all over the world. There will be a strong effort to ensure there is a sufficient commitment by major global emitters to allow the EU to commit to ambitious targets post-2012.

Question put.

[915]The Dáil divided: Tá, 108; Níl, 52.

Tá
Bannon, James.	Barry, Tom.
Breen, Pat.	Bruton, Richard.
Burton, Joan.	Butler, Ray.
Buttimer, Jerry.	Byrne, Catherine.
Byrne, Eric.	Cannon, Ciarán.
Carey, Joe.	Coffey, Paudie.
Collins, Áine.	Conaghan, Michael.
Conlan, Seán.	Connaughton, Paul J.
Conway, Ciara.	Coonan, Noel.
Corcoran Kennedy, Marcella.	Costello, Joe.
Coveney, Simon.	Creed, Michael.
Daly, Jim.	Deasy, John.
Deenihan, Jimmy.	Deering, Pat.
Doherty, Regina.	Donohoe, Paschal.
Dowds, Robert.	Doyle, Andrew.
Durkan, Bernard J.	English, Damien.
Farrell, Alan.	Feighan, Frank.
Ferris, Anne.	Fitzgerald, Frances.
Fitzpatrick, Peter.	Flanagan, Charles.
Flanagan, Terence.	Gilmore, Eamon.
Griffin, Brendan.	Hannigan, Dominic.
Harrington, Noel.	Harris, Simon.
Hayes, Brian.	Hayes, Tom.
Heydon, Martin.	Howlin, Brendan.
Humphreys, Heather.	Humphreys, Kevin.
Keating, Derek.	Keaveney, Colm.
Kehoe, Paul.	Kelly, Alan.
Kenny, Enda.	Kenny, Seán.
Kyne, Seán.	Lawlor, Anthony.
Lynch, Ciarán.	Lyons, John.
McCarthy, Michael.	McEntee, Shane.
McFadden, Nicky.	McGinley, Dinny.
McHugh, Joe.	McLoughlin, Tony.
McNamara, Michael.	Maloney, Eamonn.
Mathews, Peter.	Mitchell O’Connor, Mary.
Mitchell, Olivia.	Mulherin, Michelle.
Murphy, Dara.	Murphy, Eoghan.
Nash, Gerald.	Naughten, Denis.
Neville, Dan.	Nolan, Derek.
Nulty, Patrick.	Ó Ríordáin, Aodhán.
O’Donnell, Kieran.	O’Donovan, Patrick.
O’Dowd, Fergus.	O’Mahony, John.
O’Reilly, Joe.	O’Sullivan, Jan.
Penrose, Willie.	Perry, John.
Phelan, Ann.	Phelan, John Paul.
Quinn, Ruairí.	Rabbitte, Pat.
Reilly, James.	Ring, Michael.
Ryan, Brendan.	Shatter, Alan.
Sherlock, Sean.	Shortall, Róisín.
Spring, Arthur.	Stagg, Emmet.
Stanton, David.	Timmins, Billy.
Tuffy, Joanna.	Twomey, Liam.
Varadkar, Leo.	Wall, Jack.
Walsh, Brian.	White, Alex.

Níl
Adams, Gerry.	Boyd Barrett, Richard.
Broughan, Thomas P.	Browne, John.
Calleary, Dara.	Collins, Joan.
Collins, Niall.	Colreavy, Michael.
Cowen, Barry.	Crowe, Seán.
Daly, Clare.	Doherty, Pearse.
Donnelly, Stephen S.	Dooley, Timmy.
Ellis, Dessie.	Ferris, Martin.
Flanagan, Luke ‘Ming’.	Fleming, Sean.
Fleming, Tom.	Grealish, Noel.
Halligan, John.	Healy, Seamus.
Healy-Rae, Michael.	Higgins, Joe.
Kelleher, Billy.	Kirk, Seamus.
Kitt, Michael P.	Lowry, Michael.
Mac Lochlainn, Pádraig.	McConalogue, Charlie.
McDonald, Mary Lou.	McGrath, Finian.
McGrath, Mattie.	McGuinness, John.
McLellan, Sandra.	Martin, Micheál.
Moynihan, Michael.	Murphy, Catherine.
Ó Caoláin, Caoimhghín.	Ó Cuív, Éamon.
Ó Fearghaíl, Seán.	Ó Snodaigh, Aengus.
O’Brien, Jonathan.	O’Dea, Willie.
O’Sullivan, Maureen.	Pringle, Thomas.
Ross, Shane.	Smith, Brendan.
Stanley, Brian.	Tóibín, Peadar.
Troy, Robert.	Wallace, Mick.

Tellers: Tá, Deputies Paul Kehoe and Emmet Stagg; Níl, Deputies Seán Ó Fearghaíl and Aengus Ó Snodaigh.

Question declared carried.

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): I move:

(1) THAT for the purposes of the tax charged by virtue of section 95 of the Finance Act 1999 (No. 2 of 1999), that Act be amended, with effect as on and from 7 December 2011—

(a) in section 96(1B) (inserted by section 64(1)(f) of the Finance Act 2010 (No. 5 of 2010)), by substituting “A is the amount to be charged per tonne of CO2 emitted, being €20 in the case of petrol, aviation gasoline and heavy oil used as a propellant or for air navigation or for private pleasure navigation, and €15 in the case of each other description of mineral oil in Schedule 2A” for “A is the amount, €15, to be charged per tonne of CO2 emitted”,

(b) by substituting the following for Schedule 2 to that Act (as amended by section 42 of the Finance Act 2011 (No. 6 of 2011)):

“SCHEDULE 2

RATES OF MINERAL OIL TAX

(With effect as on and from 7 December 2011)

Description of Mineral Oil	Rate of Tax
Light Oil:
Petrol	€587.71 per 1,000 litres
Aviation gasoline	€587.71 per 1,000 litres
Heavy Oil:
Used as a propellant	€479.02 per 1,000 litres
Used for air navigation	€479.02 per 1,000 litres
Used for private pleasure navigation	€479.02 per 1,000 litres
Kerosene used other than as a propellant	€38.02 per 1,000 litres
Fuel oil	€60.73 per 1,000 litres
Other heavy oil	€88.66 per 1,000 litres
Liquefied Petroleum Gas:
Used as a propellant	€88.23 per 1,000 litres
Other liquefied petroleum gas	€24.64 per 1,000 litres
Coal:
For business use	€4.18 per tonne
For other use	€8.36 per tonne

(With effect as on and from 7 December 2011)

Description of Mineral Oil	Rate
Light Oil:
Petrol	€45.87 per 1,000 litres
Aviation gasoline	€45.87 per 1,000 litres
Heavy Oil:
Used as a propellant	€53.30 per 1,000 litres
Used for air navigation	€53.30 per 1,000 litres
Used for private pleasure navigation	€53.30 per 1,000 litres
Kerosene used other than as a propellant	€38.02 per 1,000 litres
Fuel oil	€45.95 per 1,000 litres
Other heavy oil	€41.30 per 1,000 litres
Liquefied Petroleum Gas:
Used as a propellant	€24.64 per 1,000 litres
Other liquefied petroleum gas	€24.64 per 1,000 litres

”,

(2) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

This resolution provides for an increase in the carbon charge component of the mineral oil tax on petrol and auto-diesel, with effect from midnight tonight. The carbon charge for those fuels is being increased from the equivalent of €15 per tonne of carbon dioxide emitted to €20 per tonne. When VAT is included, the increase on petrol is just under 1.5 cent per litre, and the increase on diesel is just over 1.5 cent a litre. The increase also applies to the mineral oil tax rate for aviation gasoline, which is aligned to the petrol rate, and the rates for heavy oil used for recreational flying and boating, which are aligned to the auto-diesel rate. It is intended that [918]the same increase from €15 to €20 per tonne of carbon dioxide emitted will be extended to all other types of mineral oils and to natural gas from 1 May next year, and the necessary provisions for this will be included in the Finance Bill.

The yield from the carbon charge increase across all fuels is expected to be around €80 million in 2012 and €109 million, inclusive of VAT, in a full year. The impact on the consumer price index is estimated at around 0.09% in a full year.

Deputy Billy Kelleher: There has been a six-week reduction of the fuel allowance but has this been poverty proofed by the Cabinet? There has been a strong policy commitment to increase carbon taxes but there was always a requirement for poverty proofing to ensure it would not impact on the quality of life of the most vulnerable. Has the Cabinet taken on that broad belief that we should poverty proof? If so, will it publish the documentation on this particular issue, including the impact it will have, which was highlighted to the Government when it made the decision to increase carbon tax?

Deputy Caoimhghín Ó Caoláin: I absolutely oppose this proposition to increase excise duties on petrol, diesel and other fuels, which will have a serious impact. Once again, as with the previous proposition and indeed with the next, the target is almost the same. It will have a particularly negative impact on those involved in Border communities, including filling station owners and employees. We are creating a further imbalance in the cost of fuels north and south of the Border, thus kinking everything. The next proposition concerning VAT will further fuel — not wishing to pun — matters at this point in time. All the points I made about the last proposition apply once again to this one. It is a further tax on access to work and must be seen in the context of an ever-depreciating economic situation. People are currently finding it impossible to survive and the Government is making a bad situation even worse. We vehemently oppose this proposed increase.

An Leas-Cheann Comhairle: I call Deputy Seamus Healy. I ask Deputies to be brief because we are short of time.

Deputy Seamus Healy: The implementation of this carbon tax on home heating oils from May 2012 is obscene because it is an attack on the elderly. Yesterday, we saw a 20% reduction in the fuel allowance and, in addition, gas and electricity allowances were cut from 1 September this year. Independent professional research has shown that the lack of heat in wintertime leads to the deaths of elderly people from hypothermia. Age Action Ireland has already ask how low this Government can go. I would like to see this proposal withdrawn immediately.

Deputy Catherine Murphy: People on the front line, such as the Society of St. Vincent de Paul, have specifically mentioned the issue of fuel poverty. In this regard, they have asked that the fuel allowance rate should not be cut. The number of weeks for the fuel allowance has been cut while fuel costs have been increasing excessively, so people must pay more. I am completely opposed to this measure which will subject people to terrible hardship. Ordinary families are terrified of utility bills.

The Tánaiste did not specify how this carbon tax will be used. My understanding was that carbon taxes, if applied, were supposed to be used progressively. For example, will it be ring-fenced for retrofitting houses? If so, at least something could be gained from it rather than just having a straight tax.

[919]Deputy Timmy Dooley: Will the Tánaiste let us in on the thinking that decided not to introduce this home heating oil levy until next May? What advance knowledge does he have of next winter’s weather conditions that makes him expect that things will be any different next winter?

Deputy Jerry Buttimer: Does the Deputy mean this winter?

Deputy Timmy Dooley: Has the Tánaiste had some advance sighting of a weather forecast or does be believe that economic matters will be so much better by then? Could he let us in on that, please?

Deputy Noel Coonan: The price is going down next May.

Deputy Timmy Dooley: The Deputies opposite will get plenty of opportunity to vote before the night is out. Was any serious consideration given at Cabinet to the issue of marked fuel oil in the agricultural sector? A number of organisations provided information to the Cabinet about this. They showed that if there was an equalisation of duty on agricultural and motor fuel, together with a rebate system for approved users, it could have raised in the region of €160 million. That would thereby take out this illicit trade which causes major environmental problems along the Border. In addition, it surely has a significant impact on the State’s capacity to levy appropriate taxes. Will the Tánaiste let us in on his discussions about that? Was any serious consideration given to the implementation of this matter?

Deputy Michael Healy-Rae: I am totally opposed to this measure, as are all the motorists in Ireland travelling the roads. The price of petrol and diesel is currently double what it should be, but if prices were halved they would still be costly enough for the public. If the Tánaiste thinks it is okay to put off the heating oil increase until May 2012, is he expecting every other winter to be mild so that the elderly will not need any home heating oil? I am totally opposed to this measure. I would like to see Government Deputies doing the right thing and voting against it.

Deputy Richard Boyd Barrett: Deputies Seamus Healy and Catherine Murphy have made the point that this measure will lead to more winter deaths. Delaying it until next May does not make it any more palatable. It is a vicious attack on the most vulnerable sector of society. There is a double whammy on petrol, which will be economically damaging because VAT is also being increased. All these cuts will disproportionately hit the least well-off.

Deputy Pádraig Mac Lochlainn: I have been listening to some of the Deputies heckling, but they represent rural constituencies so I would like to ask them a question. Do they believe they have a world-class public infrastructure in their rural constituencies? Do they believe it is fair to impose a carbon tax on those in rural areas when there is no public transport alternative in many parts? Do they believe in their hearts that there are adequate bus services to workplaces, schools or post offices in their communities? There have been cutbacks to all those rural transport schemes. If this money was being ring-fenced for a revolutionary approach to public transport infrastructure in rural areas, we could buy into it, but that is not happening.

Have Government Deputies been listening to hauliers in their rural constituencies? Many hauliers have had to close their businesses due to the crazy cost of diesel in recent years. Where is the support for them? How can we build the economy on that type of approach?

The cost of home heating oil will hit families who are struggling. Deputies opposite are filling up their oil tanks too, but they should try to imagine what it is like for somebody living on the dole or trying to keep a roof over their head on a basic wage. I am challenging rural Deputies [920]on the Government benches who will have to answer for themselves when they go back to their constituencies.

Deputy Brendan Griffin: How much is it in the North?

Deputy Pádraig Mac Lochlainn: They will have to answer all those questions from their constituents when they go home.

(Interruptions).

An Leas-Cheann Comhairle: Order.

Deputy Pádraig Mac Lochlainn: I am from the North of Ireland.

Deputy Paul J. Connaughton: How much is the diesel?

Deputy Brendan Griffin: I propose a carbon tax on the Opposition. There is a lot of hot air over there.

Deputy Pádraig Mac Lochlainn: I am from the most northerly part of Ireland and the Deputies should look at their maps again to learn their geography.

Deputy Brendan Griffin: It is very polluting.

Deputy Pádraig Mac Lochlainn: I will leave it at this. Those opposite should look into their hearts. They know I am right.

Deputy Brendan Griffin: At least we have a heart.

Deputy Pádraig Mac Lochlainn: They know this is wrong. Go back to the constituencies and look at the people with no public transport.

Deputy Noel Coonan: Look after one’s own.

Deputy Pádraig Mac Lochlainn: Look at how they are being taxed in these difficult times. Do that with a conscience.

An Leas-Cheann Comhairle: I ask Deputy Mattie McGrath to be brief. There are many Deputies who wish to contribute and only a few minutes remain.

Deputy Mattie McGrath: Is there any significance to the fact that there is only one Labour Deputy in here? Is it a case of last in, first out, as we saw today with the party’s newest Deputy? The Tánaiste could go back to the people on this.

An Leas-Cheann Comhairle: The Deputy should speak to the resolution.

Deputy Mattie McGrath: Where is the compassion and feeling? Dublin West will be getting ready for another by-election.

An Leas-Cheann Comhairle: The Deputy should speak on the resolution.

Deputy Mattie McGrath: There are many people knocking on doors.

Deputy Noel Coonan: Mattie is looking to get back in again.

[921]Deputy Mattie McGrath: The Deputies have met road hauliers, who are closing their businesses at a rate of one per week. It is happening in Deputy Coonan’s area too.

Deputy Noel Coonan: Do not fall into the hole.

Deputy Mattie McGrath: We have heard stories of families buying five gallons of oil to run the heating.

(Interruptions).

Deputy Mattie McGrath: This is what arises from the merciless measures of those in the Government. What about all the empty rhetoric of the last number of years? It is like snow off a ditch.

Deputy Jerry Buttimer: All the one in the Opposition.

Deputy Mattie McGrath: The Deputies should be ashamed of themselves.

Deputy Jerry Buttimer: He is——

Deputy Noel Coonan: What about South Tipperary County Council?

An Leas-Cheann Comhairle: I call Deputy Joe Higgins. There is only a minute left.

Deputy Mattie McGrath: I am my own man.

(Interruptions).

Deputy Mattie McGrath: I am entitled to reply.

Deputy Joe Higgins: The best thing I can say for the Tánaiste and the Government tonight is that we have been spared the hypocrisy going on that this was another critical environmental measure. I am sure if the Greens were still in government we would have been lectured tonight about how important it is to lash on extra taxes on oil and petrol for the environment. Of course it is not. Using increased taxes on carbon as an environmentally friendly measure is the crudest mechanism that could be used. It is like pretending that putting the price of cigarettes up by 25 cent was a health measure. This measure will hit ordinary working people, particularly those who need their cars to get to their places of employment.

The carbon reduction policy is crucial for our planet but in the European Union it has been reduced to farce. We now have a market set up in speculation in carbon credits, which operates in the same chaotic way as the financial markets we know all about. That is not how we save our environment. This is another crude measure to raise more money to pay off the banks and speculators, which is why it must be opposed.

An Leas-Cheann Comhairle: There is only time for Deputy Dessie Ellis.

Deputy Dessie Ellis: Last week in Buswells Hotel we met representatives of road haulage firms. They outlined a number of areas which they feared would have a significant impact on their industry, one being a carbon tax increase. They outlined a number of areas where money could be chased, with one being diesel laundering where there is much money being lost to the State. Another idea was to use a new method to harmonise the discrepancies between the two types of diesel, and there is potential for savings in that regard too.

[922]These are two areas with potential savings which could be utilised in preference to punitive tax on people which will affect everybody. How much of this tax will be used for environmental purposes? Will the tax be put in central funding or will it be used to implement environmental policy? We have been told that in the past that has not been the case. We are all in favour of cutting carbon emissions but will all the money be used in that area?

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): One of the standard questions often asked of Opposition parties — those currently in opposition are no exception — is that if additional tax will not be placed on working people, as this Government has chosen——

Deputy Micheál Martin: Is that a joke?

Deputy Mattie McGrath: It is a joke.

Deputy Eamon Gilmore: There have been no income tax increases——

Deputy Micheál Martin: The Tánaiste should not believe his own propaganda.

Deputy Eamon Gilmore: ——on working people in this budget.

Deputy Timmy Dooley: I know we are near Christmas but Santa does not exist.

Deputy Eamon Gilmore: The Opposition is constantly asked where it would get the tax. The answer is always a carbon tax.

Deputy Dessie Ellis: The working people.

Deputy Timmy Dooley: The Tánaiste spent a fair bit of time at that. He used his magic.

Deputy Eamon Gilmore: In the national recovery plan, Fianna Fáil——

Deputy Micheál Martin: We are not opposing it.

Deputy Eamon Gilmore: ——provides for a doubling of the carbon tax from €15 to €30 per tonne.

Deputy Micheál Martin: We do not oppose it.

Deputy Noel Coonan: What are they doing?

Deputy Eamon Gilmore: In the pre-budget statement that it produced, Fianna Fáil——

Deputy Billy Kelleher: On a point of order, could we be spared the lecture?

Deputy Brendan Griffin: They cannot have it every way.

Deputy Billy Kelleher: We are not opposed to it.

Deputy Eamon Gilmore: I am very glad to hear that.

Deputy Noel Coonan: Mattie was one of them at the time.

Deputy Timmy Dooley: I asked a question on the equalisation of taxes——

[923]Deputy Mattie McGrath: Hold on now.

Deputy Micheál Martin: We are not opposing this at all.

Deputy Eamon Gilmore: I am glad to hear it because——

Deputy Micheál Martin: The Tánaiste is implying that we are.

Deputy Noel Coonan: Deputy Mattie McGrath wants to get back in.

Deputy Micheál Martin: The Tánaiste cannot set up a straw man again. We are not opposing this.

Deputy Eamon Gilmore: In the pre-budget submission——

An Leas-Cheann Comhairle: The time is up.

Deputy Micheál Martin: The Tánaiste should not mislead the House.

Deputy Eamon Gilmore: I am not.

Deputy Micheál Martin: The Government is attacking many working people.

Deputy Mattie McGrath: We are having——

Deputy Noel Coonan: We will lobby for Mattie and get him in.

Deputy Mattie McGrath: Go back to school.

Deputy Micheál Martin: The motor tax is a tax on working people.

An Leas-Cheann Comhairle: The Tánaiste, without interruption.

Deputy Noel Coonan: We will get him back.

Deputy Eamon Gilmore: I am not misleading the House.

Deputy Billy Kelleher: He is.

Deputy Eamon Gilmore: I am putting on the record Fianna Fáil’s stated position——

Deputy Timmy Dooley: He is trying to get a few Labour Deputies back into the House.

Deputy Micheál Martin: Taxing the working man.

Deputy Eamon Gilmore: ——on the issue. It is supportive and in the pre-budget submission, it stated that the rate should be €20 per tonne.

Deputy Micheál Martin: Yes.

Deputy Timmy Dooley: We supported it here. We asked about the equalisation of duties for diesel.

Deputy Mattie McGrath: There is a separation.

Deputy Micheál Martin: That was in the document.

[924]Deputy Noel Coonan: Mattie and Fianna Fáil are all the one.

Deputy Mattie McGrath: Not at all.

Deputy Eamon Gilmore: Take it easy.

An Leas-Cheann Comhairle: The time has expired.

Deputy Noel Coonan: There was a time when Mattie was proud to be in with them.

Deputy Mattie McGrath: Fadó, fadó.

Deputy Eamon Gilmore: A question has been raised about the measures——

Deputy Noel Coonan: I will not tell Tom.

Deputy Eamon Gilmore: ——being taken by the Government to deal with fuel poverty and the difficulty people have in meeting their fuel bills. There has already been a “no disconnection” policy introduced this winter by the Minister, Deputy Rabbitte, for families struggling with utility bills.

Deputy Aengus Ó Snodaigh: They will be disconnected in the summer.

Deputy Eamon Gilmore: That has been agreed with the energy companies and there will be no disconnections this winter for families in financial difficulty.

Deputy Timmy Dooley: Perhaps they will take the lead from the Minister, Deputy Varadkar, and be sent to sunnier climes on holiday.

Deputy Eamon Gilmore: This measure exempts solid fuel such as peat briquettes, logs and coal from any increases in carbon tax. I do not understand the argument being made by some Deputies in respect of home heating oil that the measure should be brought forward. We have agreed it will not apply until May 2012.

Deputy Timmy Dooley: The question is about next winter. What will happen to make things better?

Deputy Mattie McGrath: And the summer.

Deputy Brendan Griffin: Deputy Dooley will be out in the cold for a while anyway.

Deputy Eamon Gilmore: As the Leas-Cheann Comhairle is encouraging me to wrap up——

Deputy Timmy Dooley: The Deputy should put on that red shirt again.

Deputy Eamon Gilmore: ——I have taken——

Deputy Brendan Griffin: We were left with a hair shirt after the Deputy’s party.

Deputy Eamon Gilmore: I have taken note of the concerns expressed by Sinn Féin about the problem of illegal laundered diesel.

Deputy Micheál Martin: Deputy Dooley raised the fuel laundering matter. It is a big problem in Border counties.

Deputy Eamon Gilmore: The Government will pursue that.

[925]An Leas-Cheann Comhairle: I am now required to put the question.

Deputy Micheál Martin: They are very concerned about fuel laundering in the Border counties.

Deputy Billy Kelleher: If anybody has any information on it, they can bring it to the Tánaiste.

Deputy Micheál Martin: I believe some of it is used for political purposes.

Question put.

The Dáil divided: Tá, 127; Níl, 33.

Tá
Bannon, James.	Barry, Tom.
Breen, Pat.	Browne, John.
Bruton, Richard.	Burton, Joan.
Butler, Ray.	Buttimer, Jerry.
Byrne, Catherine.	Byrne, Eric.
Calleary, Dara.	Cannon, Ciarán.
Carey, Joe.	Coffey, Paudie.
Collins, Áine.	Collins, Niall.
Conaghan, Michael.	Conlan, Seán.
Connaughton, Paul J.	Conway, Ciara.
Coonan, Noel.	Corcoran Kennedy, Marcella.
Costello, Joe.	Coveney, Simon.
Cowen, Barry.	Creed, Michael.
Daly, Jim.	Deasy, John.
Deenihan, Jimmy.	Deering, Pat.
Doherty, Regina.	Donnelly, Stephen S.
Donohoe, Paschal.	Dooley, Timmy.
Dowds, Robert.	Doyle, Andrew.
Durkan, Bernard J.	English, Damien.
Farrell, Alan.	Feighan, Frank.
Ferris, Anne.	Fitzgerald, Frances.
Fitzpatrick, Peter.	Flanagan, Charles.
Flanagan, Terence.	Fleming, Sean.
Gilmore, Eamon.	Griffin, Brendan.
Hannigan, Dominic.	Harrington, Noel.
Harris, Simon.	Hayes, Brian.
Hayes, Tom.	Heydon, Martin.
Howlin, Brendan.	Humphreys, Heather.
Humphreys, Kevin.	Keating, Derek.
Keaveney, Colm.	Kehoe, Paul.
Kelleher, Billy.	Kelly, Alan.
Kenny, Enda.	Kenny, Seán.
Kirk, Seamus.	Kitt, Michael P.
Kyne, Seán.	Lawlor, Anthony.
Lynch, Ciarán.	Lyons, John.
McCarthy, Michael.	McConalogue, Charlie.
McEntee, Shane.	McFadden, Nicky.
McGinley, Dinny.	McGuinness, John.
McHugh, Joe.	McLoughlin, Tony.
McNamara, Michael.	Maloney, Eamonn.
Martin, Micheál.	Mathews, Peter.
Mitchell O’Connor, Mary.	Mitchell, Olivia.
Moynihan, Michael.	Mulherin, Michelle.
Murphy, Dara.	Murphy, Eoghan.
Nash, Gerald.	Naughten, Denis.
Neville, Dan.	Nolan, Derek.
Nulty, Patrick.	Ó Cuív, Éamon.
Ó Fearghaíl, Seán.	Ó Ríordáin, Aodhán.
O’Dea, Willie.	O’Donnell, Kieran.
O’Donovan, Patrick.	O’Dowd, Fergus.
O’Mahony, John.	O’Reilly, Joe.
O’Sullivan, Jan.	Penrose, Willie.
Perry, John.	Phelan, Ann.
Phelan, John Paul.	Quinn, Ruairí.
Rabbitte, Pat.	Reilly, James.
Ring, Michael.	Ryan, Brendan.
Shatter, Alan.	Sherlock, Sean.
Shortall, Róisín.	Smith, Brendan.
Spring, Arthur.	Stagg, Emmet.
Stanton, David.	Timmins, Billy.
Troy, Robert.	Tuffy, Joanna.
Twomey, Liam.	Varadkar, Leo.
Wall, Jack.	Walsh, Brian.
White, Alex.

Níl
Adams, Gerry.	Boyd Barrett, Richard.
Broughan, Thomas P.	Collins, Joan.
Colreavy, Michael.	Crowe, Seán.
Daly, Clare.	Doherty, Pearse.
Ellis, Dessie.	Ferris, Martin.
Flanagan, Luke ‘Ming’.	Fleming, Tom.
Grealish, Noel.	Halligan, John.
Healy, Seamus.	Healy-Rae, Michael.
Higgins, Joe.	Lowry, Michael.
Mac Lochlainn, Pádraig.	McDonald, Mary Lou.
McGrath, Finian.	McGrath, Mattie.
McLellan, Sandra.	Murphy, Catherine.
Ó Caoláin, Caoimhghín.	Ó Snodaigh, Aengus.
O’Brien, Jonathan.	O’Sullivan, Maureen.
Pringle, Thomas.	Ross, Shane.
Stanley, Brian.	Tóibín, Peadar.
Wallace, Mick.

Tellers: Tá, Deputies Paul Kehoe and Emmet Stagg; Níl, Deputies Catherine Murphy and Aengus Ó Snodaigh.

Question declared carried.

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): I move:

(1) THAT the rate of value-added tax on the supply of certain goods and services at present chargeable at the rate of 21 per cent be increased to 23 per cent of the amount on which tax is chargeable in relation to the supply of such goods and services, and that, accordingly, the Value-Added Tax Consolidation Act 2010 (No. 31 of 2010) be amended in subsection (1)(a) of section 46 by substituting “23 per cent” for “21 per cent”.

(2) THAT this Resolution shall have effect as on and from 1 January 2012.

(3) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

This resolution provides for an increase in the standard rate of VAT from 21% to 23%, with effect from 1 January 2012. The change will apply to all goods and services which are currently [927]subject to the VAT rate of 21%, for example, cars, petrol and auto-diesel, electrical equipment and CD/DVDs, alcohol, cigarettes and tobacco, telecommunications, furniture, cosmetics and adult clothing and footwear. Approximately 51% of all goods and services are subject to the standard VAT rate.

9 o’clock

The increase in the VAT rate is estimated to raise €67 million in a full year. It will have a 0.67% impact on the consumer price index if the increase is passed on in full to the consumer. This VAT increase will have no impact on the goods and services subject to the other VAT rates in the Irish VAT structure. In this regard, there will be no change to the zero rate of VAT, which applies to a range of goods and services, including most food, children’s clothes and footwear and oral medicines. There will also be no change to the 13.5% VAT rate which applies to new houses, electricity, gas and home heating fuels, or to the 9% VAT rate which applies until 31 December 2013 to restaurant and catering services, hotel and holiday accommodation, certain entertainment services, sporting facilities, certain printed matter and hairdressing.

Deputy Willie O’Dea: It is strange, to say the least, that a Labour Party Minister was sent in here yesterday to do all the heavy lifting and that the most unpopular of the financial resolutions is also being advocated tonight by a Labour Party Minister. Everyone who has commented on this measure has condemned it in the most trenchant terms possible and Fianna Fáil opposes it absolutely.

I heard the Minister for Finance congratulate himself today on the fact that he was moving towards taxes on consumption, presumably rather than increasing income tax. It is not a question of either-or. We produced a set of proposals that would give the same revenue, without either increasing the top rates of income tax or VAT. Conventional wisdom is that taxes on consumption are less detrimental to employment than increases in income taxes. I agree. However, each case depends on the circumstances. If we look at the circumstances surrounding the Irish economy currently, we quickly appreciate why this proposal is insane. For the 44th successive month in a row, retail sales have fallen. We need to boost the domestic economy. Exports are beginning to falter. If we look at the falling Irish trade balance, we see that export growth is faltering badly. There has never been a time in our history where there has been a greater need — with 450,000 people unemployed and 100 a day emigrating — to stimulate the domestic economy. In these circumstances, an increase in the standard rate of VAT is the last thing this economy needs.

Not only is this proposal economically illiterate, it is also regressive. We have the most progressive income tax system in the civilised world. Value added tax is, by definition, regressive. People who do not have a taxable income cannot avoid having to pay VAT. The poorer a person is, the greater the proportion of his or her income to be paid on VAT. Many wealthier people do not spend their entire income. Therefore, not only is the proposal economically illiterate, it is socially regressive. It has been stated that the items covered by the 21% rate are such things as furniture, white goods, etc. People who do not have a taxable income — the poor — also need refrigerators. I suppose they could get by without television sets, but they should not be expected to in this day and age. Representatives from the Society of St. Vincent de Paul said today that last year they spent millions on helping people purchase furniture which they otherwise could not afford. All of these goods fall into the 21% VAT category. I find it ironic that these items will now be taxable at 23%, whereas value added tax on items such as caviar, smoked salmon and concert tickets is zero rated.

I was delighted today that RTE took the decision on the six o’clock news to highlight my colleague Deputy Michael McGrath’s exposure of the synthetic outrage of the Minister for Social Protection, Deputy Joan Burton, last year at the very notion of an increase in value [928]added tax from 21% to 21.5%, but there was not a tittle out of her today when we are talking about a percentage increase four times that. Talk about raising hypocrisy to the level of a crusade.

Without much confidence of being successful, I ask the Tánaiste and the Government to think again about this proposal. I urge them to have a look at our document and see how they can raise the money without further depressing the domestic economy. The job of the Government in these perilous times is to lead us away from the cliff rather than towards it.

Deputy Caoimhghín Ó Caoláin: This proposition is an outrage. It is predicated on the notion that it will create some €670 million in additional income for the Exchequer in a 12-month period. The Government has no hope of realising such figures. The Minister for Finance suggested there would not be an increased exodus across the Border. He used the word “stampede”. It is time to wise up. Make no mistake about it, there will be an exodus of people across the Border because everything being done in this budget directs them that way, both in terms of resolution No. 3, which brings additional excise duties on petrol and diesel, and in terms of this one. People will cross the Border in ever-increasing numbers because the increase in VAT from 21% to 23% will be the final nail in the coffin of so many businesses, not only along the Border but in counties south of the Border. The Government is going to close businesses that are just hanging on and no more at this time. These are businesses where the footfall has already dropped dramatically and where staff have already had to be let go. The Government is driving that final nail into the coffin. Not only is this proposal a further blow to the State’s economy, the impact it will have on local and regional economies along the 12 counties just south of the Border will be significant.

I have a vain hope this Government might withdraw this proposition. If it does not and if it forces it through, due to the weight of its numbers here, that will be a shame and a disgrace and the Government will reap its just reward for it, because it is ill-thought out and anti-business and the Border counties. It will even have an impact further south.

An Leas-Cheann Comhairle: I ask Deputies to be brief as there are a number of Deputies who wish to contribute.

Deputy John Halligan: Last year, nearly 1,300 small and medium businesses went into insolvency. Many of these would tell us this was partly due to high rates, high rent and the downturn in the economy, but it was primarily due to the lack of spending power in the economy. Some 150,000 jobs were lost, with thousands more on the verge. Chambers of commerce and small businesses throughout the country would tell anybody who speaks to them that they are on the edge. I know of one small business run by a husband and wife who work 60 to 70 hours a week and come home with just €700 to €800 between the two of them. They cannot take a further increase in VAT without going over the edge. The Government will find after Christmas that many businesses will go over the edge.

What this says to people and small businesses, is that besides not doing anything for them with regard to rates or upward-only rent reviews, we are now going to force them to increase the cost of their products. This will mean that people will spend less. The statistics are there for the Government to see and the Tánaiste should check them out. Some 1,300 businesses have gone into insolvency and another 1,000 are hanging on by a thread. They cannot afford the smallest of increases at this stage. We talk about helping and supporting small businesses. If we walk through any town or city, we see the number of shops and small businesses that have closed down. They have closed for the reasons I have given: rates and rent, but primarily the lack of spending power in the economy. The cuts introduced in this budget will restrict spending and the VAT increase will restrict it even further. The Government can rest assured [929]that by making this change, it will drive more small businesses under and drive more people onto unemployment benefit.

Deputy Sean Fleming: I urge the Tánaiste to reconsider this measure. Many of the points have been made by those who have spoken so far. It is very disturbing that we are introducing a 2% VAT increase. The Tánaiste said it will generate €650 million in a full year and €560 million in the coming year. VAT is paid after a two-month period, so there will be ten months of receipts in 2012.

The figures included in the budget are inaccurate because for the first time ever, they have taken no account of the impact this VAT increase will have on business. The Government has taken the figure from VAT receipts and added the 2% on to that. Adding the 2% will cause a reduction in sales and in activity and will lead to a reduction in the VAT take. This will be very severe in the Border area. Our party leader, Deputy Martin, visited a number of businesses in the Border area which are alarmed by the prospect of this.

If the Government could have brought it in before Christmas, it would have done so but as it is being brought in from 1 January 2012, it has actually cancelled the January sales. Who will go to the January sales if VAT is increasing on 1 January? I accept that because VAT will increase from 1 January, it will probably help sales in the run up to Christmas because people will want to buy before the VAT increase comes in.

The best trading period for many businesses is the December-January one but VAT will be increased in the middle of it on 1 January which will hammer the sales. I do not know how retailers will survive this attack on their January trade. They need that trade because February and March are normally lean months in business. To hit them early in the year will be very severe and will cause untold difficulties and loss of jobs.

The areas affected include cars, confectionary, detergents, diesel, to which we have already applied a carbon tax, petrol, furniture, fittings, fridges and washing machines. People need those items. One of the elements about which I am most concerned is children’s toys, which are being taxed. This Government would have taxed Santa Claus this Christmas if had been able to do so.

Deputy Mattie McGrath: It has killed him off.

Deputy Sean Fleming: I would say to the parents of the children of Ireland, as it is past their bedtime, to assure them that despite the best efforts of this Government to tax Santa Claus and Christmas toys, it has failed to do so. Santa Claus has received all the letters, his bags are packed, the sleigh is ready and he is on his way from the North Pole and the toys will arrive without the extra VAT this year. The bad news for those children is that next year will be very difficult because this Government has decided to tax Santa Claus next year. It did not get to do so this year because he is on his way. To tax children’s toys is a mean act and it says it all about this Government.

An Leas-Cheann Comhairle: I ask for brevity.

Deputy Brian Stanley: I appeal to the Tánaiste to row back on this decision because it will have a disproportionate impact on low income families. It is a flat tax. The Government is putting it forward as if it will apply only to luxuries. Adult clothes and shoes, having a telephone in a rural area and basic household appliances are not luxuries.

It will also damage employment in small towns. Small towns are already dying. A business person told me that only €20 went through the till one day last week which did not even pay [930]for the heating. That is what one faces in January. This will not generate more income but will damage those local economies. What will happen is that one will charge more but get less. Will the Government rethink this?

Deputy Michael Healy-Rae: I am very opposed to this measure as this massive hit of taxation will affect everybody, especially the poorest in our society. It is a retrograde step and will not ensure the Government receives up to €650 million extra in returns. I cannot see the logic behind it. The Government is crippling people who are already suffering badly.

I wish to highlight the fact that last year the Minister for lifestyle choice, or I mean the Minister for Social Protection, had one view on an increase in VAT but this year she has done a complete U-turn. She is quite happy to ensure the people will be hit with this draconian tax. When the United Kingdom reduced VAT, it resulted in greater economic activity. This is a wrong move.

Deputy Seamus Kirk: As a representative of a Border constituency, I rise to tell the Tánaiste that the implications of this proposal are very serious. Huge volumes of traffic from the towns in my constituency and along the Border will go northwards. We are quite familiar with the very adequate road infrastructure and travelling long distances to shop in Newry, Banbridge and further north is relatively easy for shoppers nowadays.

Commentators regularly say the domestic economy needs a lift. We need to generate more activity in the domestic economy. There is no doubt that the increase in the VAT rate will further depress the domestic economy south of the Border. People with diminished spending power after some of the measures introduced yesterday and today will chase value for money. Naturally, they will travel to Newry, Banbridge and perhaps Belfast and other areas. The difficulty we have is that the trading equilibrium in the Border counties blows hot or cold, depending on where the advantage for shopper lies.

It is not long since we saw the spectacle of miles of tailbacks of vehicles on the way to Newry. That was a loss to the trading sector south of the Border, including in County Louth. Inevitably, that has serious implications for the overall tax yield for the Exchequer and has clear implications for the number of people employed in the retail sector.

Given the profound implications of this proposal, I appeal to the Tánaiste to reconsider it. The figure of 2% is too great an increase and must be reconsidered immediately.

Deputy Richard Boyd Barrett: There has been a lot of smoke and mirrors to try to deflect from the real meat of this budget. It is when we reach a proposal such as this that we see how completely retrograde and bankrupt this budget is. This is a make the poor poorer tax. There is no question about it. Loading this tax on things needed by people who have already been savaged with cuts and who barely have enough to keep going means they will buy less of them. That will make the poor poorer.

Along with everything else, there will be a lot more poorer people in this country. It makes a mockery of the suggestion that this budget is about jobs or that it is a priority of this Government to create jobs. This will result directly in the loss of jobs because the collapse in demand among low and middle income families is the reason small businesses throughout the country are hanging on for dear life. They cannot afford another hit and more businesses and small traders will go out of business and shed jobs.

Not only is it unjust, regressive and lead to job losses, it probably will not gain one penny for the Exchequer. That is the irony of it. It is likely that the Government will get nothing, or [931]next to nothing, back from this because people will simply buy fewer goods and there will be no extra revenue for the State. It makes no sense.

Deputy Brendan Smith: This new imposition on consumers is serious. The Government should be encouraging them to spend locally to support local economies. There is a grave danger that large volumes of trade will be lost to this jurisdiction. Traders and shopping centres in the Six Counties have already ratcheted up their advertising and promotion campaigns. As a representative of two Ulster counties, I want to state clearly traders in southern Border area are concerned about the threat to their businesses presented by this tax measure. They have invested heavily in developing new facilities in recent years and cannot afford to have their trade diminished further.

An Leas-Cheann Comhairle: Does the Tánaiste wish to reply? We are out of time.

Deputy Micheál Martin: May we have a further five minutes? The other resolutions will be easier to deal with.

An Leas-Cheann Comhairle: I cannot allow it.

Deputy Dessie Ellis: The Leas-Cheann Comhairle indicated——

Deputy Micheál Martin: The Chief Whip will not object. Please allow Members a further five minutes.

Deputy Timmy Dooley: If the Tánaiste gives us five minutes, we will return them to him on the next motion.

An Leas-Cheann Comhairle: I cannot accede to the Deputies’ request. Unfortunately, the time afforded is limited. Many Deputies wish to contribute, but we must abide by the order.

Deputy Micheál Martin: We have only had 20 minutes to discuss this resolution, although we agreed to half an hour.

Deputy Sean Fleming: There are 30 minutes.

Deputy Timmy Dooley: Yes.

An Leas-Cheann Comhairle: The allocation of time motion was amended.

Deputy Micheál Martin: On a point of order, we amended it again to read “30 minutes”.

Deputy Sean Fleming: That is included in the order.

Deputy Micheál Martin: The Leas-Cheann Comhairle might not be aware of the amendment. During the last vote we agreed to spend 30 minutes discussing the VAT resolution and reduce the time allowed for the remaining resolutions. The Government Whip agreed to spend 15 minutes on the next resolution and allow an extra ten minutes to discuss this resolution, bringing the total time allowed to 30 minutes.

Deputy Michael Healy-Rae: It is an important issue.

An Leas-Cheann Comhairle: I am advised that there was no formal agreement.

Deputy Micheál Martin: May we formally agree to it now?

[932]Deputy Dessie Ellis: It was a gentleman’s agreement.

Deputy Timmy Dooley: Will the Tánaiste afford us ten minutes?

An Leas-Cheann Comhairle: Will the Tánaiste help me, please?

Deputy Eamon Gilmore: There is an ultimate time limit.

Deputy Micheál Martin: That is fine.

Deputy Eamon Gilmore: Does the Opposition wish to take five minutes from the next——

Deputy Timmy Dooley: We will take ten minutes.

Deputy Eamon Gilmore: Ten minutes from the time allowed for the next motion.

An Leas-Cheann Comhairle: There are only ten minutes in the next slot.

Deputy Micheál Martin: We agreed to have a new slot. I do not know where the Chief Whip has gone, but everyone agreed to have a new slot.

An Leas-Cheann Comhairle: Yes, but the House did not agree. There was no formal arrangement. I would love to allow it.

Deputy Joe Higgins: The Tánaiste can agree to it now. He is the member of the Government in the Chamber. He can give us ten minutes which can come off the time allowed for the next debate.

Deputy Micheál Martin: The Tánaiste has no problem with the request made.

Deputy Pat Deering: Five minutes have been used up already.

Deputy Eamon Gilmore: How much time are we adding?

Deputy Micheál Martin: We will add ten minutes for the discussion on this motion and take five minutes from the time allowed for each of the next two motions.

Deputy Eamon Gilmore: That is fine.

An Leas-Cheann Comhairle: Deputy Higgins is next to speak. He must be brief and co-operative.

Deputy Joe Higgins: Tá cáin bhreisluacha le cur in áirde go dtí 23%. Seo ceann de na polasaithe is measa san bhuiséad seo agus ceann de na hionsaithe is géire san bhuiséad in aghaidh ghnáth daoine. Cuireann cánacha indíreacha isteach go mórmhór ar dhaoine bochta agus ar lucht oibre atá ar pháíseal agus ar mheán pá. Dá bhrí sin, tá sé mímhorálta, mícheart agus míchóir ó gach pointe.

Má thógtar €670 milliún i gcáin bhreisluacha, sin €670 milliún nach mbeidh ag dul isteach díreach sna seirbhísí nó sna siopaí agus, dá bhrí sin, a bheidh caillte don eacnamaíocht ghinearálta. Déanfaidh sé sin an-dochar don pholasaí déine atá ar bun ag an Rialtas. Cad na thaobh nach n-éisteann an Rialtas leis an méid atá an Comhaontas Clé ag rá, bunaithe ar fhigiúiríón Phríomh-Oifig Staidrimh agus Credit Suisse, go bhfuil €219 billiún in achmhainní agus in airgead ag an 5% is saibhre sa tír agus tré cháin réadúil a chur ar an 5% sin go mbeadh €10 [933]billiún againn an bhliain seo chugainn chun, mar shampla, poist a chruthú, infheistíocht a dhéanamh i jabanna agus gan na ciorraithe agus na cánacha breise seo a chur i bhfeidhm?

Tá sé náireach go bhfuil an rogha mícheart á thógáil ag an Rialtas arís, rogha a chuireann isteach ar ghnáth daoine, an gnáth lucht oibre agus daoine bochta, seachas cáin bhreise a chur orthu siúd atá thar a bheith saibhir.

An Leas-Cheann Comhairle: I ask for Deputy Ellis’s co-operation.

Deputy Dessie Ellis: I will do my best. I am baffled by the Tánaiste’s approach. Not that long ago a 9% VAT rate was introduced to help restaurants and the tourism industry. The Tánaiste has stated this rate has worked. By and large, the industry has improved and more people are eating in restaurants. In that light, I cannot understand why we would add 2% to the VAT rate, given that it will hit people who use such facilities, as well as those seeking to purchase white goods, televisions, cars and so forth. The increase will affect people’s spending power, particularly during the January sales when they expect to find bargains.

It is a question of choice. Applying a 1% wealth tax would create more change and collect more money. Under the Government’s resolution, the only people who will not be short of money will be those who have it. The least well-off will suffer.

Deputy Robert Troy: It is interesting to note that not one Government Deputy has spoken in favour of this regressive VAT increase. Last week I attended a meeting of more than 60 retailers in Mullingar and they were outraged by the proposal. They are still outraged by the Government’s U-turn on Columb Barracks.

An Leas-Cheann Comhairle: Stick to the motion, please.

Deputy Robert Troy: Traders are reeling and the retail sector is on its knees. The Government has had a change of heart since the VAT rate was increased by 0.5% a number of years ago. Coupled with its U-turn on upward-only rent reviews, its lack of action on commercial rates and the reduction in the size of the redundancy rebate, this measure will cost rather than generate jobs.

Deputy Mattie McGrath: I will try to be brief. Outside the Dáil I am a small businessman. This increase will be disastrous. When the previous Government increased VAT by 0.5%, it needed to reduce it again. Catch me once, shame on you. Catch me twice, shame on me. This is a retrograde step at which I am amazed and aghast. I am not playing to the gallery. One Labour Party Deputy — I am sorry, I do not know his name — has arrived to join the Tánaiste. Someone referred to January sales. All backbenchers will go out before midnight to find bargains because they will not be able to pay for them in the new year.

(Interruptions).

Deputy Mattie McGrath: In the new year it will be gach rud imithe. James Connolly founded the Labour Party in my town of Clonmel and its Members are going like flies. One has left and many more are on their way.

Deputy Timmy Dooley: The Government has shown schizophrenic tendencies in respect of VAT. In May it tried to create an aura in respect of job creation. It told us that the VAT reduction on the backs of private pensioners would create a flood of jobs in the tourism sector and help to get the economy going again. It made passionate pleas to get the people behind it. Now it is increasing VAT, seemingly in the belief this will have no impact on economic activity. [934] Clearly, it has no understanding of the impact of a VAT reduction or increase on the domestic economy.

The Government has been priding itself on what it has done for tourism. The budget shows it has no concept of what is involved in that regard. The Government has no concrete proposals to attract tourists to Ireland. The VAT decrease had no impact. This increase will have a considerable——

Deputy Brendan Griffin: The figures are good.

Deputy Timmy Dooley: Deputy Griffin is from County Kerry. He should know the benefits of tourism and that this measure will destroy the sector in his county.

Deputy Brendan Griffin: The tourism figures are positive and the Deputy should examine them. They have improved dramatically.

An Leas-Cheann Comhairle: Deputies, please.

Deputy Timmy Dooley: The Deputy should recognise that the improvement is on the back of the impact of the ash cloud in the preceding year.

Deputy Brendan Griffin: The Deputy should recognise that the tourism figures have improved substantially since the previous Government left office.

Deputy Timmy Dooley: The Deputy should come out of the ash cloud. He is buried in fog.

(Interruptions).

An Leas-Cheann Comhairle: Please, Deputies. We are running out of time.

Deputy Mattie McGrath: There are no clouds in County Kerry.

Deputy Seamus Healy: The Government, in particular the Labour Party, was elected on a promise that it would tackle unemployment. Instead, unemployment has increased. This is another job destruction measure. For 44 months in a row retail business has declined. This measure will depress it further, close many small businesses which are hanging on by their fingertips and cause additional job losses in the retail sector. It is an effective job destruction measure and should be withdrawn immediately.

Deputy Joan Collins: This is one of the many smash and grab proposals that does not make sense. This is part of austerity and part and parcel of taking more money out of people’s pockets when they can ill afford to have it taken from them. Members said they have been contacted by people and have attended meetings. People from the Crumlin village area have contacted me, including one man who said that if this comes in on 1 January he will close his shop because he will not be able to keep it open. I am sure the Tánaiste has also heard this. If he was on this side of the House, he would be arguing against the 2% increase in VAT. We must be concerned about the workers and jobs will be lost.

Deputy Stephen S. Donnelly: This increase to VAT is dumb policy making. The only figure supplied is €650 million. A 15 year old studying junior certificate economics could do a better job than this. We know this measure will destroy jobs and that there will be second and third order effects. Where are the calculations? An army of people are paid very well to do these calculations. Where is the poverty impact analysis? Where is the total net effect of this? We [935]know that this measure is regressive. The Tánaiste is not presenting any figures regarding the 21% rate of VAT but the bottom decile spends 16% of its income and the top decile spends 6% of its income on these products. By definition, the measure is regressive. According to the logic of the Tánaiste on the jobs initiative, this would destroy jobs. Where is the analysis? There is nothing to allow us to base our vote on and I ask the Tánaiste to withdraw this before coming back in four weeks’ time with some analysis to suggest what this will do to the people of Ireland.

Deputy Billy Kelleher: When this was run by the Bundestag some weeks ago to get approval, I thought the Government would have other proposals to soften the blow of the 2% rise in VAT for the retail sector, which might involve a proposal on upward only rent reviews, but I discovered a complete volte face on rent reviews. The Tánaiste had a crusade on the issue of retail and the need to protect vulnerable retail outlets. This will have a devastating impact on the retail sector. People have a brass neck to come in here without highlighting that there was a massive U-turn on upward only rent reviews. It is quite amazing that the Government slipped this through and said that NAMA might oblige. Will there be publication of the legal advice received by the Government? When the Government parties were on this side of the House, they consistently asked for the publication of legal advice to the Government of the day. Now that they are on the other side of the House, they can publish the legal advice received with regard to the U-turn on upward only rent reviews. This goes to the heart of credibility of any Government presenting a budget that can be accepted by groups of people. The Government parties campaigned with Retail Excellence Ireland and were hugging shopkeepers from one end of the country to the other, promising there would be a change to the upward only rent review.

Deputy Mattie McGrath: It is the kiss of death.

Deputy Billy Kelleher: It has not happened and I do not think it will ever happen. At least, the Government should publish the legal advice because that might explain the massive U-turn.

An Leas-Cheann Comhairle: As the time has elapsed, I must put the question.

Deputy Eamon Gilmore: Can I reply?

An Leas-Cheann Comhairle: Very briefly.

Deputy Eamon Gilmore: In fairness, I agreed to extra time on what I thought was a discussion on the VAT issue but it turned out to be a discussion of many other issues. The proposal to increase VAT was contained in Fianna Fáil’s four-year recovery plan.

Deputy Willie O’Dea: The Tánaiste is misleading the House again.

Deputy Eamon Gilmore: Does Deputy O’Dea want me to read out the document to him?

Deputy Mattie McGrath: Is the Government adopting all the Fianna Fáil proposals?

Deputy Billy Kelleher: How long more can the Government blame the previous tenant for the dirty kitchen?

Deputy Eamon Gilmore: I do not want to take up time and the matter is on record. Fianna Fáil proposed that and it is the height of hypocrisy.

Deputy Micheál Martin: No one proposed a VAT increase in 2012.

[936]Deputy Eamon Gilmore: In the pre-budget submission, Fianna Fáil said it would not go ahead with the proposal but did not say where the money would come from. The opposition of Sinn Féin and others to the measure carries no credibility. Those Deputies have come in here and opposed every revenue raising proposal. They even opposed ——

Deputy Caoimhghín Ó Caoláin: We gave the Tánaiste an alternative but he did not have the decency to read it because he would have learned something. It is long overdue that he looks at what other parties are proposing.

Deputy Eamon Gilmore: They even opposed 25 cent on the packet of cigarettes. Those Deputies have no credibility.

Deputy Mattie McGrath: Labour’s way or Frankfurt’s way.

Question put.

The Dáil divided: Tá, 105; Níl, 51.

Tá
Bannon, James.	Barry, Tom.
Breen, Pat.	Bruton, Richard.
Burton, Joan.	Butler, Ray.
Buttimer, Jerry.	Byrne, Catherine.
Byrne, Eric.	Cannon, Ciarán.
Carey, Joe.	Coffey, Paudie.
Collins, Áine.	Conaghan, Michael.
Conlan, Seán.	Connaughton, Paul J.
Conway, Ciara.	Coonan, Noel.
Corcoran Kennedy, Marcella.	Costello, Joe.
Coveney, Simon.	Creed, Michael.
Daly, Jim.	Deasy, John.
Deenihan, Jimmy.	Deering, Pat.
Doherty, Regina.	Donohoe, Paschal.
Dowds, Robert.	Doyle, Andrew.
Durkan, Bernard J.	English, Damien.
Farrell, Alan.	Feighan, Frank.
Ferris, Anne.	Fitzgerald, Frances.
Fitzpatrick, Peter.	Flanagan, Charles.
Flanagan, Terence.	Gilmore, Eamon.
Griffin, Brendan.	Hannigan, Dominic.
Harrington, Noel.	Harris, Simon.
Hayes, Brian.	Hayes, Tom.
Heydon, Martin.	Howlin, Brendan.
Humphreys, Heather.	Humphreys, Kevin.
Keating, Derek.	Keaveney, Colm.
Kehoe, Paul.	Kelly, Alan.
Kenny, Enda.	Kenny, Seán.
Kyne, Seán.	Lawlor, Anthony.
Lynch, Ciarán.	Lyons, John.
McCarthy, Michael.	McEntee, Shane.
McFadden, Nicky.	McGinley, Dinny.
McHugh, Joe.	McLoughlin, Tony.
McNamara, Michael.	Maloney, Eamonn.
Mathews, Peter.	Mitchell O’Connor, Mary.
Mitchell, Olivia.	Mulherin, Michelle.
Murphy, Dara.	Murphy, Eoghan.
Nash, Gerald.	Naughten, Denis.
Neville, Dan.	Nolan, Derek.
Ó Ríordáin, Aodhán.	O’Donnell, Kieran.
O’Donovan, Patrick.	O’Mahony, John.
O’Reilly, Joe.	O’Sullivan, Jan.
Penrose, Willie.	Perry, John.
Phelan, Ann.	Phelan, John Paul.
Quinn, Ruairí.	Rabbitte, Pat.
Reilly, James.	Ring, Michael.
Ryan, Brendan.	Shatter, Alan.
Sherlock, Sean.	Shortall, Róisín.
Spring, Arthur.	Stagg, Emmet.
Stanton, David.	Timmins, Billy.
Tuffy, Joanna.	Twomey, Liam.
Wall, Jack.	Walsh, Brian.
White, Alex.

Níl
Adams, Gerry.	Boyd Barrett, Richard.
Broughan, Thomas P.	Browne, John.
Calleary, Dara.	Collins, Joan.
Collins, Niall.	Colreavy, Michael.
Cowen, Barry.	Crowe, Seán.
Daly, Clare.	Donnelly, Stephen S.
Dooley, Timmy.	Ellis, Dessie.
Ferris, Martin.	Flanagan, Luke ‘Ming’.
Fleming, Sean.	Fleming, Tom.
Grealish, Noel.	Halligan, John.
Healy, Seamus.	Healy-Rae, Michael.
Higgins, Joe.	Kelleher, Billy.
Kirk, Seamus.	Kitt, Michael P.
Lowry, Michael.	Mac Lochlainn, Pádraig.
McConalogue, Charlie.	McDonald, Mary Lou.
McGrath, Finian.	McGrath, Mattie.
McGuinness, John.	McLellan, Sandra.
Martin, Micheál.	Moynihan, Michael.
Murphy, Catherine.	Nulty, Patrick.
Ó Caoláin, Caoimhghín.	Ó Cuív, Éamon.
Ó Fearghaíl, Seán.	Ó Snodaigh, Aengus.
O’Brien, Jonathan.	O’Dea, Willie.
O’Sullivan, Maureen.	Pringle, Thomas.
Ross, Shane.	Smith, Brendan.
Stanley, Brian.	Troy, Robert.
Wallace, Mick.

Tellers: Tá, Deputies Paul Kehoe and Emmet Stagg; Níl, Deputies Seán Ó Fearghaíl and Aengus Ó Snodaigh.

Question declared carried.

Minister for Education and Skills (Deputy Ruairí Quinn): I move:

(1) THAT section 126 of the Taxes Consolidation Act 1997 (No. 39 of 1997), in relation to the tax treatment of certain benefits payable under the Social Welfare Acts, shall be amended as respects the year of assessment 2012 and each subsequent year of assessment by deleting subsection (5).

The first 36 days or six weeks of illness benefit and occupational injury benefit are currently disregarded for tax purposes. In some circumstances, for example where an employee goes sick [938]and continues to be paid by the employer, the employee can be better off financially on sick leave than when working.

This amendment seeks to remove the tax exemption that applies to the first six weeks of illness benefit and occupational injury benefit in each tax year in order to avoid the situation where the take-home pay of an employee in some cases is greater on sick leave than when he or she is working. This measure is also designed to reduce the cost of employee sick absence to the Exchequer. The yield from this proposal is difficult to quantify, however, a tentative estimate of the yield is €13 million in a full year.

10 o’clock

Deputy Sean Fleming: We have discussed many big issues this evening but this is one of the mean and nasty ones — the Government is taxing the sick, those on illness benefit and occupational injury benefit. This affects people who through no fault of their own might have had an accident and are out from work for six, eight or ten weeks. There was another way to deal with it. If the Government was worried about people, who are being paid through a sick scheme by their employers, not having to pay any tax on the illness benefit or occupational injury benefit, it could have reduced the amount the employer could pay directly to that individual without the need for this House to tax sick people. Certainly more than 30,000 people are affected, and at €400 or €500 each, it brings the total up to approximately €13 million. It is mean and nasty to tax people who are sick. The Labour Party has scraped the bottom of the barrel on this issue.

Deputy Jonathan O’Brien: Like the previous speaker, I regard this as an attack on those who are sick and unable to work. The Minister said it is difficult to quantify how much it will yield and yet the Government is proceeding with it. It is a direct attack on those who, through no fault of their own, are out of work on illness benefit. It is a disgraceful decision and I ask the Minister to give a more comprehensive explanation of the rationale behind it.

Deputy Catherine Murphy: Not everyone who is out sick gets paid fully by the employer. People need to get authorisation by way of a doctor’s note. We are trying to force people to come back to work quicker than may well be desirable in many cases. This is a dangerous measure because it encourages people to go back to work, in some cases when they are not fit for work.

Deputy Micheál Martin: A Cheann Comhairle——

An Ceann Comhairle: We have only one minute and 40 seconds. If the Deputy wants the Minister to reply——

Deputy Micheál Martin: I will take 40 seconds.

We need to get away from the idea that when someone goes out sick, he or she is deliberately doing so in order to be absent from work. That was the point made in the Minister’s speech, because this measure featured in a paragraph entitled “absenteeism”. The purpose is to punish workers who go sick. I do not know what the Labour Party is doing at this stage, but it goes against the very spirit of what the party was meant to be about. It is a very anti-worker measure that brands every worker who goes sick as someone who wants to go on the lang or is deliberately absenting himself or herself from work, which is not fair. People get sick for genuine reasons and there are other ways to deal with absenteeism, but this is punitive on workers.

Deputy Michael Creed: I welcome this measure. There is an issue of entitlement to sick leave where employees feel that because an allocation has been made for a certain amount of sick days, they are taken almost as a given right in terms of annual leave entitlement.

[939](Interruptions).

Deputy Michael Creed: That is a fact and the Deputies opposite should face up to reality.

Deputy Sean Fleming: This is not about taking sickies. This is about 36 days’ illness.

An Ceann Comhairle: Deputies, please. Deputy Creed is entitled to express views.

Deputy Michael Creed: The Deputy knows it and should be realistic.

Deputy Sean Fleming: Nobody is allowed 36 days of sickies.

Deputy Michael Creed: Why is it that where there is a provision, everybody takes that exact number of days?

Deputy Sean Fleming: The Deputy does not know what he is talking about.

Deputy Michael Creed: The Deputies opposite should be realistic and honest about it.

Deputy Sean Fleming: That is a different topic.

Deputy Michael Creed: Let us have a real debate about the issue.

Deputy Sean Fleming: The Deputy is off the target.

An Ceann Comhairle: I call Deputy Halligan for ten seconds and that is it.

Deputy John Halligan: There is an implication that people who are out sick are deliberately out sick and do not want to work.

Deputy Sean Fleming: That is what the Minister said.

Deputy John Halligan: What statistics does the Government have——

An Ceann Comhairle: I will ask the Minister——

Deputy John Halligan: ——along those lines indicating there are people who do not want to work and would prefer to be sick?

An Ceann Comhairle: The Minister has 30 seconds to reply.

Deputy Ruairí Quinn: My party is called the Labour Party. We are about work and workers. It is an absolute contradiction that a person should be better off when on sick leave than when working. This is an anomaly in the legislation, which we are correcting. This provision will save quite an amount of money. We do not know the precise amount.

Deputy Jonathan O’Brien: The Government should know how much it will save.

Deputy Micheál Martin: It will save €13 million.

Deputy Brendan Howlin: How much?

Deputy Micheál Martin: €13 million.

Deputy Brendan Howlin: I thought the Deputy said €30 million.

[940]Deputy Ruairí Quinn: There is an issue in the public service in terms of management of sick leave.

Deputy John Halligan: The Government parties did not see this anomaly when in opposition.

Deputy Ruairí Quinn: We have a problem and we will manage it.

Deputy Sean Fleming: The Government should reform the public service and not tax those who are ill.

Question put.

The Dáil divided: Tá, 106; Níl, 51.

Tá
Bannon, James.	Barry, Tom.
Breen, Pat.	Bruton, Richard.
Burton, Joan.	Butler, Ray.
Buttimer, Jerry.	Byrne, Catherine.
Byrne, Eric.	Cannon, Ciarán.
Carey, Joe.	Coffey, Paudie.
Collins, Áine.	Conaghan, Michael.
Conlan, Seán.	Connaughton, Paul J.
Conway, Ciara.	Coonan, Noel.
Corcoran Kennedy, Marcella.	Costello, Joe.
Coveney, Simon.	Creed, Michael.
Daly, Jim.	Deasy, John.
Deenihan, Jimmy.	Deering, Pat.
Doherty, Regina.	Donohoe, Paschal.
Dowds, Robert.	Doyle, Andrew.
Durkan, Bernard J.	English, Damien.
Farrell, Alan.	Feighan, Frank.
Ferris, Anne.	Fitzgerald, Frances.
Fitzpatrick, Peter.	Flanagan, Charles.
Flanagan, Terence.	Gilmore, Eamon.
Griffin, Brendan.	Hannigan, Dominic.
Harrington, Noel.	Harris, Simon.
Hayes, Tom.	Heydon, Martin.
Howlin, Brendan.	Humphreys, Heather.
Humphreys, Kevin.	Keating, Derek.
Keaveney, Colm.	Kehoe, Paul.
Kelly, Alan.	Kenny, Enda.
Kenny, Seán.	Kyne, Seán.
Lawlor, Anthony.	Lynch, Ciarán.
Lyons, John.	McCarthy, Michael.
McEntee, Shane.	McFadden, Nicky.
McGinley, Dinny.	McHugh, Joe.
McLoughlin, Tony.	McNamara, Michael.
Maloney, Eamonn.	Mathews, Peter.
Mitchell O’Connor, Mary.	Mitchell, Olivia.
Mulherin, Michelle.	Murphy, Dara.
Murphy, Eoghan.	Nash, Gerald.
Naughten, Denis.	Neville, Dan.
Nolan, Derek.	Ó Ríordáin, Aodhán.
O’Donnell, Kieran.	O’Donovan, Patrick.
O’Mahony, John.	O’Reilly, Joe.
O’Sullivan, Jan.	Penrose, Willie.
Perry, John.	Phelan, Ann.
Phelan, John Paul.	Quinn, Ruairí.
Rabbitte, Pat.	Reilly, James.
Ring, Michael.	Ross, Shane.
Ryan, Brendan.	Shatter, Alan.
Sherlock, Sean.	Shortall, Róisín.
Spring, Arthur.	Stagg, Emmet.
Stanton, David.	Timmins, Billy.
Tuffy, Joanna.	Twomey, Liam.
Varadkar, Leo.	Wall, Jack.
Walsh, Brian.	White, Alex.

Níl
Adams, Gerry.	Boyd Barrett, Richard.
Broughan, Thomas P.	Browne, John.
Calleary, Dara.	Collins, Joan.
Collins, Niall.	Colreavy, Michael.
Cowen, Barry.	Crowe, Seán.
Daly, Clare.	Donnelly, Stephen S.
Dooley, Timmy.	Ellis, Dessie.
Ferris, Martin.	Flanagan, Luke ‘Ming’.
Fleming, Sean.	Fleming, Tom.
Grealish, Noel.	Halligan, John.
Healy, Seamus.	Healy-Rae, Michael.
Higgins, Joe.	Kelleher, Billy.
Kirk, Seamus.	Kitt, Michael P.
Lowry, Michael.	Mac Lochlainn, Pádraig.
McConalogue, Charlie.	McDonald, Mary Lou.
McGrath, Finian.	McGrath, Mattie.
McGrath, Michael.	McGuinness, John.
McLellan, Sandra.	Martin, Micheál.
Moynihan, Michael.	Murphy, Catherine.
Nulty, Patrick.	Ó Caoláin, Caoimhghín.
Ó Cuív, Éamon.	Ó Fearghaíl, Seán.
Ó Snodaigh, Aengus.	O’Brien, Jonathan.
O’Dea, Willie.	O’Sullivan, Maureen.
Pringle, Thomas.	Smith, Brendan.
Stanley, Brian.	Troy, Robert.
Wallace, Mick.

Tellers: Tá, Deputies Paul Kehoe and Emmet Stagg; Níl, Deputies Seán Ó Fearghaíl and Aengus Ó Snodaigh.

Question declared carried.

Minister for Education and Skills (Deputy Ruairí Quinn): I move:

(1) THAT Part 16 (as amended by section 33(1)(a) of the Finance Act 2011 (No. 6 of 2011)) of the Taxes Consolidation Act 1997 (No. 39 of 2011) be amended in section 494(3) —

(a) in paragraph (a)(i), by substituting “and which carries on relevant trading activities from a fixed place of business in the State, or” for “where those activities are principally carried on in the State, or”,

(b) in paragraph (a)(ii), by substituting the following for clause (II):

“(II) both the holding of such shares or securities or the making of such loans and the carrying on of relevant trading activities where relevant trading activities are carried on from a fixed place of business in the State.”,

and

[942]

(2) THAT section 33 of the Finance Act 2011 be amended by substituting the following for subsection (2):

“(2) (a) Subject to paragraphs (b) and (c), this section has effect in respect of shares issued on or after 25 November 2011.

(b) This section does not have effect in respect of shares issued before 25 November 2011 and, for all the purposes of Part 16 of the Principal Act in connection with those shares, the Principal Act has effect as if this section had not been enacted.

(c) This section does not have effect in respect of shares issued on or after 25 November 2011 and on or before 31 December 2011 where—

(i) the company issuing the shares, or

(ii) where the shares are acquired by an investment fund, the fund acquiring the shares,

elects by notice in writing to the Revenue Commissioners on or before 31 December 2011 that, for all the purposes of Part 16 of the Principal Act in connection with those shares, the Principal Act has effect as if this section had not been enacted.”.

In the budget for 2011 and the Finance Act 2011, changes were made to the business expansion scheme, BES, which introduced a new employment and investment incentive, EII, intended to boost job creation by SMEs. This measure could not be given effect until the European Commission gave approval under the Community guidelines on state aid to promote risk capital investments in small and medium-sized enterprises. Recently, the Commission granted that approval subject to certain further legislative amendments. This financial resolution amends section 33 of the Finance Act 2011 to provide for these legislative amendments and commences that section.

November and December traditionally are the peak months for raising BES investments. In view of the extended timeframe involved in securing the approval of the European Commission, I have decided to allow both the BES and EII schemes to run concurrently until the end of this calendar year, that is, until 31 December 2011. The BES scheme will end on 31 December 2011. The EII scheme is scheduled to run until 31 December 2013. The new commencement provisions will therefore provide for relief under the new EII scheme to apply in respect of shares issued on or after 25 November 2011 and second, where shares are issued between 25 November 2011 and 31 December 2011, an election to be made in writing to the Revenue Commissioners indicating under which scheme, BES or EII, the shares are issued. This election will determine the scheme under which relief to investors may be granted.

Deputy Sean Fleming: We welcome the pro-enterprise and pro-employment approach in this proposal and we will support it. We agree with the new employment and investment incentive scheme which came into operation on 25 November last and will continue until the end of 2013. Given that this proposal is only being voted through here tonight, will the Minister explain how the 25 November provision will be given retrospective effect?

An Ceann Comhairle: Would the Minister like to respond to that question?

[943]Deputy Ruairí Quinn: I am not exactly sure how we will do it but I will find that out in about three minutes.

An Ceann Comhairle: Do any other Members wish to contribute?

Deputy Ruairí Quinn: I am told that the Finance Bill provides for this facility to be legal and compliant with the Revenue Commissioners.

Deputy Sean Fleming: I thank the Minister for that.

Question put and agreed to.

Minister for Education and Skills (Deputy Ruairí Quinn): I move:

(1) THAT for the purposes of stamp duty charged by virtue of the Stamp Duties Consolidation Act 1999 (No. 31 of 1999) Schedule 1 to that Act be amended —

(a) under the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance.”, by inserting the following after paragraph (4):

“(4A) Where the amount or value of the consideration for the sale is wholly or partly attributable to property which is not residential property ...

2 per cent of the consideration which is attributable to property which is not residential property but where the calculation results in an amount which is not a multiple of €1 the amount so calculated shall be rounded down to the nearest €.”,

(b) under the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance.”, by deleting paragraphs (7) to (13), and

“(b) where the consideration, or any part of the consideration (other than rent), moving either to the lessor or to any other person, consists of any money, stock or security, and the amount or value of such consideration is wholly or partly attributable to property which is not residential property ...

[944]

(2) THAT, subject to paragraph (3) of this Resolution, paragraph (1) of this Resolution shall have effect as respects instruments executed on or after 7 December 2011.

(3) THAT paragraph (1) of this Resolution shall not apply as respects any instrument executed before 1 July 2012 where —

(a) the effect of the application of that paragraph would be to increase the duty otherwise chargeable on the instrument, and

(b) the instrument contains a statement in such form as the Revenue Commissioners may specify, certifying that the instrument was executed solely in pursuance of a binding contract entered into before 7 December 2011.

(4) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

This resolution provides for changes to the stamp duty payable on non-residential property. At present varying rates of stamp duty apply to such property and I am simplifying the system to provide for a low single rate of stamp duty at the rate of 2%. The new rate will apply to instruments executed from tomorrow onwards.

There will be few cases where additional duty would be payable after this change, but to cater for them I am including a transitional provision whereby, if a binding contract to purchase a non-residential property has been entered on or before today, 6 December 2011, and the transfer of the property is executed before 1 July 2012, the stamp duty payable will not increase.

The cost of this measure is estimated at €64 million in 2012 and in each subsequent year.

Deputy Billy Kelleher: The Government is subsidising the property market.

Deputy Micheál Martin: I can understand the rationale for this proposal. I take it that the basic objective of the exercise is to try to kick-start the property industry. In this context the Budget Statement was interesting. At one level there was a good deal of criticism of the fact that the property bubble was a fundamental factor in the collapse of the economy but the more deeper underlying problems relate to the euro and its flawed design and the dramatic decrease in interest rates after the 9-11 attacks in the United States in 2001. A wall of cheap money was funnelled in to Europe and across the developed economies which fuelled much of the property bubbles across the eurozone, including in this country.

At the beginning of the Budget Statement there was criticism of the property market but by the end of it we heard of a range of incentives for the sector. Given the very poor state it is in, I do not have a difficulty with attempting to create a sustainable construction sector. However, it puts into sharp relief much of the rhetoric with which we had to put up on previous occasions from Deputies in the Labour Party in particular. It is ironic that a Labour Party Minister is promoting this resolution. It probably gives a calmer perspective to the debates we had in this House in previous times when extreme rhetoric was used in regard to the sector. We do not have a difficulty with the proposition.

Deputy Richard Boyd Barrett: I would like to know a little more about this resolution. Turning property into a commodity for speculation, trade and profiteering is the reason we are in the mess we are in now. Property-based tax reliefs particularly directed at developers fuelled the property bubble that has crashed our economy. I find it worrying that the Government’s approach to trying to restart economic activity in our economy, which we all want to see, is [945]based on further tax reliefs specifically for commercial property. I wonder about that. The €64 million estimated cost involved is a good deal of money that we are giving away. I would like to hear the case as to why that €64 million might not have been used to mitigate some of the nasty measures the Government has inflicted on lone parents and other vulnerable sectors of society who have been hit and on measures such as the reduction in the fuel allowance season.

I do not know whether I should vote for or against this resolution but I am suspicious of it, given the history of such reliefs and the quantity of money involved. I ask the Minister to give us a convincing reason this is not just another property relief, albeit maybe of a smaller scale, of the sort that got us into the mess we are in.

Deputy Michael Healy-Rae: I would not liken this resolution with the incentives and the tax reliefs that were available in the past. I welcome the resolution. I hope that it will create a stimulus in the property market. None of us wants there to be a return to the crazy property bubble that we had and we know that will never happen. I believe that in a small way this is a helpful measure and that is why I will support it.

While there may be people wishing to purchase property, the elephant in the room is that nobody can get access to money because the banks are shut down in terms of lending money. While I appreciate this measure, people who might want to make a move and buy a property, be it a commercial or a private property, are unable to do so unless they have the money in their back pockets. No one can get money in this country at present to purchase any such property. That is a major challenge and difficulty facing the Government and all of us.

Deputy Billy Kelleher: As Deputy Martin outlined, there is a degree of irony or hypocrisy in the context of what was stated in recent times with regard to the difficulties the property sector brought about in this economy. A very simplistic argument was proffered for a very long time when Government members were on this side of the House. Now they realise it is important to have a stimulus to ensure there is activity in the commercial and residential property sector.

One of the key issues facing the economy is job creation. The Minister made great strides in promoting the idea that this was a jobs budget but at the very heart of a modern economy is the need to have access to credit. There are no proposals that have a definitive way of ensuring the release of credit into the broader economy. Everybody who represents small and medium-sized businesses and everybody who works in the system knows it is completely blocked and that there has been no freeing up of credit. Some of the surveys carried out would show that the opposite is the case, that there is now a tightening of credit again. All these incentives seek to stimulate a section of the economy, but it cannot move until there is an opening and freeing up of credit.

It is a positive step to introduce a stimulus in this area but until such time as genuine efforts — as opposed to the aspirational measures laid out in the context of the pillar banks, as they are now called, in terms of providing lending — are made, nothing will happen. That is the single biggest failure at the heart of this budget document, the failure to bring forward commitments to ensure that credit is made available to small and medium-sized businesses and potential mortgage holders.

Deputy Sean Fleming: Will the Minister provide us with clarification and additional information on this proposal? The information provided is sketchy with regard to the figure of €64 million. Perhaps the Minister might be able to answer a few questions. I respectfully state that if the answers are not available, we will want them by way of replies to parliamentary questions in the near future.

[946]How much of the projected land bank is under NAMA’s control? It is the biggest landholder in the country which has loans within its jurisdiction. It is important to know whether this request is coming from NAMA to help release tied-up properties and earn cash. By definition, it must have a big stake in this issue. Therefore, we would like to know who initiated this proposal.

Given that this measure will generate sales of property, will there be a VAT gain on the transactions? How much extra VAT might be generated from them? While stamp duty levels may be reduced, there may be a gain in VAT for the Exchequer. I presume this applies to new buildings as well as to those already in use, including hotels and other commercial properties.

I particularly welcome one aspect of this measure, coming as I do from the rural constituency of Laois-Offaly. The reduction in stamp duty applies to farmland which will help the transfer of land from the older generation to the younger generation. My parish has only three full-time farmers under the age of 40 years. Everyone involved in farming must earn other income and this significant reduction in stamp duty on farming transactions will be a big help in allowing the older generation to transfer land.

Deputy Joe Higgins: This is not the way to go about regenerating an economy that is being destroyed by the Government’s austerity policy. Shortly after I entered the Dáil in 1997 a series of measures was begun by Fianna Fáil to cut taxes for property speculators and developers which led to the catastrophic property bubble which led to the blackmail prices young people were charged for the right to have a roof over their heads. It is highly ironic that a Labour Party Minister stood up to propose this measure considering that each year when in opposition his colleague, Deputy Joan Burton, religiously engaged in a rant against section 23 and other such scams.

We will have an economy in which buildings and homes can be bought and sold for realistic prices when the savage austerity measures and the pouring of billions into bad banks to save the European speculative system are stopped and people are at work. That is how we will go about it, not by this type of artificial measure.

Deputy Michael Colreavy: I have mixed views on this resolution. I understand the value and logic behind reducing stamp duty to make it easier for young people to get involved in farming and take over farming businesses. However, I have a deep terror of making it easy for the developers and financiers who have failed the country to do the same all over again. I believe it is by design that this measure is tied to agricultural land, to make it a selling point. I have concerns and would like clarification. What impact will this measure have on commercial properties held by NAMA? Was consideration given to extending this facility to domestic dwellings, as well as to commercial properties? Was consideration given to putting in place an end date for this resolution in order that if we find it is being abused by those who abused us previously, at least we would have a legal mechanism in place to shut it down?

Deputy Seamus Healy: The question of NAMA has been raised and I wish to address it briefly. The programme for Government promises that the secret society which is NAMA would be made transparent and that freedom of information legislation would be extended to ensure we would be able to obtain details on the transactions and operations of NAMA. We were promised this on numerous occasions in the Chamber. However, it has not yet happened. When will it happen?

[947]The Taoiseach has asked whether developers involved in the debacle we went through, their friends or those working on their behalf might be able to get their hands on properties coming on the market through NAMA. This is a very significant concern and should be addressed.

I agree with Deputy Colreavy on the question of residential properties. Stamp duty is being decreased in the case of non-residential properties. What about residential properties? What about those with mortgages and in mortgage distress? There is no benefit in the budget for those who find themselves in very serious difficulty.

Deputy Jonathan O’Brien: I also have mixed views on this resolution. I have been thrown by the inclusion of farmland because I cannot take it in isolation. We must be very careful not to create a situation where another property bubble will be allowed to develop. I cannot take it in isolation because, taken together with the seven year holiday being given to property developers with regard to capital gains tax, it is a start towards encouraging developers to buy property and sit on it for a certain period of time. Anything that does this is very dangerous. That is why I am concerned.

Deputy Micheál Martin: Was advice received on this taxation measure and, if so, is it possible for it to be published? Was there any lobbying by interest groups in favour of the introduction of such a measure and, if so, is it possible for this information to be published?

How was the figure of €64 million calculated? It seems to indicate an expectation or anticipation of approximately €2 billion worth of sales and transactions. Will the Minister confirm this and give an indication of how the figure of €64 million was reached?

Deputy Ruairí Quinn: Many questions have been asked and many issues have been raised about property. These will be for another day. I will be more than happy to come to the Chamber to describe in detail how Fianna Fáil destroyed the original tax breaks.

Deputy Micheál Martin: For heaven’s sake.

Deputy Willie O’Dea: The Minister should answer for himself.

Deputy Sean Fleming: Are we going to play games in the last ten minutes?

Deputy Ruairí Quinn: Deputy Martin began his comments with observations on the irony of a Labour Party Minister moving this measure.

Deputy Willie O’Dea: You are very churchy.

Deputy Ruairí Quinn: I am responding in the spirit of democratic dialogue as to why this is the case.

Deputy Micheál Martin: I disagree with the Minister.

Deputy Ruairí Quinn: Eight Deputies spoke about this matter. With regard to residential property, stamp duty is at the level of 1% up to a value of €1 million, at which point it increases to 2%. Therefore, to answer Deputy Healy, the issue of stamp duty is already covered with regard to residential property.

Deputy Seamus Healy: I was not speaking about stamp duty. I was asking what would be done for those in mortgage distress.

Deputy Ruairí Quinn: The purpose of the resolution is to alter the rate of stamp duty on commercial property. I will confine my remarks to this issue.

[948]Deputy Boyd Barrett and others asked how the calculation of €64 million had been arrived at. I understand it was based on properties being sold with a stamp duty rate of 6% and an estimate of what the demand might be based on various representations made and an analysis received by the Department of Finance. It is an analysis, it is not a scientific figure. They have taken a median view on it. It may or may not occur but we now propose to charge 2% stamp duty on a volume of commercial property transactions for which, if the rate was 6%, the amount of €64 million would be the revenue foregone, dropping from 6% to 2%.

11 o’clock

Why are we doing it? — because there is an overhang of commercial property that is preventing movement in the sector. Empty buildings are counterproductive in an array of different manners. They are a cost on whoever owns them. In many cases, I suspect — I do not know for definite, but it is a reasonable assumption that Deputy Fleming has made — that NAMA is directly or indirectly at the end of the ownership line of these properties. It is in everybody’s interest, and in particular in the taxpayer’s interest, that these properties are moved on. There are some indications to suggest that there is an interest among people who would be in a position to purchase these properties. There would be a VAT consequence in terms of the turnaround of the property or its upgrading or improvement. So there will be some degree of employment generation.

We have had NAMA for several years and there is a great deal of static, non-movement in the property sector. The Minister for Finance has convinced the Cabinet that by dropping the stamp duty rate from 6% to 2% we may get some movement. That would be positive for all concerned, including the taxpayers who are ultimately the owners of NAMA.

Deputy Jonathan O’Brien: And the capital gains tax, Minister?

An Leas-Cheann Comhairle: I am sorry. I am now required to put the question according to an order of the Dáil of today: “That the motion for Financial Resolution No. 7 be agreed to”.

Question put.

The Dáil divided: Tá, 125; Níl, 30.

Tá
Bannon, James.	Barry, Tom.
Breen, Pat.	Browne, John.
Bruton, Richard.	Burton, Joan.
Butler, Ray.	Buttimer, Jerry.
Byrne, Catherine.	Byrne, Eric.
Calleary, Dara.	Cannon, Ciarán.
Carey, Joe.	Coffey, Paudie.
Collins, Áine.	Conaghan, Michael.
Conlan, Seán.	Connaughton, Paul J.
Conway, Ciara.	Coonan, Noel.
Corcoran Kennedy, Marcella.	Costello, Joe.
Coveney, Simon.	Cowen, Barry.
Creed, Michael.	Daly, Jim.
Deasy, John.	Deenihan, Jimmy.
Deering, Pat.	Doherty, Regina.
Donohoe, Paschal.	Dooley, Timmy.
Dowds, Robert.	Doyle, Andrew.
Durkan, Bernard J.	English, Damien.
Farrell, Alan.	Feighan, Frank.
Ferris, Anne.	Fitzgerald, Frances.
Fitzpatrick, Peter.	Flanagan, Charles.
Flanagan, Terence.	Fleming, Sean.
Gilmore, Eamon.	Grealish, Noel.
Griffin, Brendan.	Hannigan, Dominic.
Harrington, Noel.	Harris, Simon.
Hayes, Tom.	Healy-Rae, Michael.
Heydon, Martin.	Howlin, Brendan.
Humphreys, Heather.	Humphreys, Kevin.
Keating, Derek.	Keaveney, Colm.
Kehoe, Paul.	Kelleher, Billy.
Kelly, Alan.	Kenny, Enda.
Kenny, Seán.	Kirk, Seamus.
Kitt, Michael P.	Kyne, Seán.
Lawlor, Anthony.	Lowry, Michael.
Lynch, Ciarán.	Lyons, John.
McCarthy, Michael.	McConalogue, Charlie.
McEntee, Shane.	McFadden, Nicky.
McGinley, Dinny.	McGrath, Michael.
McGuinness, John.	McHugh, Joe.
McLoughlin, Tony.	McNamara, Michael.
Maloney, Eamonn.	Martin, Micheál.
Mathews, Peter.	Mitchell O’Connor, Mary.
Mitchell, Olivia.	Moynihan, Michael.
Mulherin, Michelle.	Murphy, Dara.
Murphy, Eoghan.	Nash, Gerald.
Naughten, Denis.	Neville, Dan.
Nolan, Derek.	Ó Cuív, Éamon.
Ó Fearghaíl, Seán.	Ó Ríordáin, Aodhán.
O’Dea, Willie.	O’Donnell, Kieran.
O’Donovan, Patrick.	O’Mahony, John.
O’Reilly, Joe.	O’Sullivan, Jan.
Perry, John.	Phelan, Ann.
Phelan, John Paul.	Quinn, Ruairí.
Rabbitte, Pat.	Reilly, James.
Ring, Michael.	Ryan, Brendan.
Shatter, Alan.	Sherlock, Sean.
Shortall, Róisín.	Smith, Brendan.
Spring, Arthur.	Stagg, Emmet.
Stanton, David.	Timmins, Billy.
Troy, Robert.	Tuffy, Joanna.
Twomey, Liam.	Varadkar, Leo.
Wall, Jack.	Walsh, Brian.
White, Alex.

Níl
Adams, Gerry.	Boyd Barrett, Richard.
Broughan, Thomas P.	Collins, Joan.
Colreavy, Michael.	Crowe, Seán.
Daly, Clare.	Donnelly, Stephen S.
Ellis, Dessie.	Ferris, Martin.
Flanagan, Luke ‘Ming’.	Fleming, Tom.
Halligan, John.	Healy, Seamus.
Higgins, Joe.	Mac Lochlainn, Pádraig.
McDonald, Mary Lou.	McGrath, Finian.
McGrath, Mattie.	McLellan, Sandra.
Murphy, Catherine.	Nulty, Patrick.
Ó Caoláin, Caoimhghín.	Ó Snodaigh, Aengus.
O’Brien, Jonathan.	O’Sullivan, Maureen.
Pringle, Thomas.	Ross, Shane.
Stanley, Brian.	Wallace, Mick.

Tellers: Tá, Deputies Paul Kehoe and Emmet Stagg; Níl, Deputies Seán Ó Fearghaíl and Aengus Ó Snodaigh.

Question declared carried.

Minister of State at the Department of the Taoiseach (Deputy Paul Kehoe): I move:

That, notwithstanding anything in Standing Orders, or the Order of the Dáil of today, the debate on the following resolutions and on any amendments thereto shall conclude after the time indicated as follows: Resolutions Nos. 8 to 12, inclusive, after 20 minutes.

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): I move the following Financial Resolutions:

(1) THAT, as respects a gift or an inheritance taken on or after 7 December 2011, the Table in Part 2 of Schedule 2 to the Capital Acquisitions Tax Consolidation Act 2003 (No. 1 of 2003) be amended by substituting “30” for “25”.

(1) THAT, as respects a gift or an inheritance taken on or after 7 December 2011, the definition of “group threshold” in paragraph 1 of Part 1 of Schedule 2 to the Capital Acquisitions Tax Consolidation Act 2003 (No. 1 of 2003) be amended by substituting “€183,688” for “€244,000” in subparagraph (a) of the definition.

(1) THAT section 28(3) of the Taxes Consolidation Act 1997 (No. 39 of 1997) be amended by substituting “30 per cent” for “25 per cent” in respect of the disposal of assets made on or after 7 December 2011.

(2) THAT section 649A(1) of the Taxes Consolidation Act 1997 be amended by substituting the following for paragraph (b):

“(b) in the case of a relevant disposal made on or after 7 December 2011, 30 per cent.”.

(1) THAT, as respects any payment or crediting of relevant interest (within the meaning of Chapter 4 of Part 8 of the Taxes Consolidation Act 1997 (No. 39 of 1997)) made on [951]or after 1 January 2012, the definition of “appropriate tax” in section 256(1) of the Taxes Consolidation Act 1997 be amended—

(a) in paragraph (a) by substituting “30 per cent” for “27 per cent”,

(b) in paragraph (b) by substituting “30 per cent” for “27 per cent”, and

(2) THAT, as respects any dividend paid or credited to a special share account or a special term share account (within the meaning of Chapter 5 of Part 8 of the Taxes Consolidation Act 1997) section 267B of the Taxes Consolidation Act 1997 be amended in respect of dividends paid or credited on or after 1 January 2012—

(a) in subsection (2)(b) by substituting “30 per cent” for “27 per cent”, and

(b) in subsection (3)(b) by substituting “30 per cent” for “27 per cent”.

(1) THAT section 730F(1) of the Taxes Consolidation Act 1997 (No. 39 of 1997), as respects the happening of a chargeable event in relation to a life policy (within the meaning of Chapter 5 of Part 26 of that Act) on or after 1 January 2012, be amended —

(a) in paragraph (a) by substituting “33 per cent” for “30 per cent”, and

(b) in paragraph (b) by substituting “(S+33) per cent” for “(S+30) per cent”.

(2) THAT Chapter 6 of Part 26 of the Taxes Consolidation Act 1997, as respects the receipt by any person of a payment in respect of a foreign life policy (within the meaning of Chapter 6 of that Part) or the disposal in whole or in part of a foreign life policy (within that meaning) on or after 1 January 2012, be amended —

(a) in section 730J (a) —

(i) in clause (I) of subparagraph (i) by substituting “30 per cent” for “27 per cent”,

(ii) in clause (II)(A) of subparagraph (i) by substituting “(S+33) per cent” for “(S+30) per cent”,

(iii) in clause (II)(B) of subparagraph (i) by substituting “33 per cent” for “30 per cent”, and

[952]

(iv) in clause (I) of subparagraph (ii) by substituting “(H+30) per cent” for “(H+27) per cent”,

and

(b) in section 730K —

(i) in paragraph (a) of subsection (1) by substituting “(S+33) per cent” for “(S+30) per cent”, and

(ii) in paragraph (b) of subsection (1) by substituting “33 per cent” for “30 per cent”.

(3) THAT Chapter 1A of Part 27 of the Taxes Consolidation Act 1997, as respects the happening of a chargeable event in relation to an investment undertaking (within the meaning of section 739B(1) of that Act) on or after 1 January 2012, be amended —

(a) in the formula in section 739D(5A) by substituting “(G x 33)” for “(G x 30)”, and

(b) in section 739E(1) —

(i) in paragraph (a) by substituting “30 per cent” for “27 per cent”,

(ii) in paragraph (b) by substituting “33 per cent” for “30 per cent”, and

(iii) in paragraph (ba) by substituting “(S+33) per cent” for “(S+30) per cent”.

(4) THAT Chapter 4 of Part 27 of the Taxes Consolidation Act 1997, as respects —

(a) the receipt by any person of a payment in respect of a material interest in an offshore fund (within the meaning of Chapter 4 of that Part), or

(b) the disposal in whole or in part of a material interest in an offshore fund (within that meaning), on or after 1 January 2012, be amended —

(i) in section 747D —

(I) in paragraph (a)(i)(I) —

(A) in subclause (A) by substituting “(S+33) per cent” for “(S+30) per cent”, and

(B) in subclause (B) by substituting “30 per cent” for “27 per cent”,

(II) in paragraph (a)(i)(II) —

(A) in subclause (A) by substituting “(S+33) per cent” for “(S+30) per cent”, and

(B) in subclause (B) by substituting “33 per cent” for “30 per cent”, and

[953]

(III) in paragraph (a)(ii)(I) by substituting “(H+30) per cent” for “(H+27) per cent”, and

(ii) in section 747E(1) —

(I) in paragraph (b)(i) by substituting “(S+33) per cent” for “(S+30) per cent”, and

(II) in paragraph (b)(ii) by substituting “33 per cent” for “30 per cent”.

Financial Resolution No. 9 provides that the tax-free threshold for group A inheritance and gifts would be reduced from €332,084 to €250,000. This tax-free threshold applies to transfers between parents and children. Groups B and C are not affected. The yield from this measure is €21 million in a full year.

Financial Resolution No. 10 is in respect of capital gains tax which will be raised from 25% to 30%. Resolution No. 11 deals with deposit interest retention tax, DIRT, which will increase by 3 percentage points from 27% to 30%. In the case of products that have their interest paid less frequently, including life insurance-type policies and investment policies of that nature, the rate will increase from 30% to 33%. The combined measure will raise €45 million in a full year.

Financial Resolution No. 12 relates to life assurance policies and investment funds. The rates are, again, being raised from 30% to 33%.

Deputy Jonathan O’Brien: The Minister indicated that he would raise capital gains tax by 5% but he did not provide a figure for what would potentially be raised.

Deputy Richard Bruton: I beg the Deputy’s pardon. It is €81 million in 2012 and €83 million in a full year.

Deputy Jonathan O’Brien: It is probably a missed opportunity because if we had increased the rate by another 5% we would have brought in €165 million which would have off-set some of the cuts to child benefit proposed by the Government. The measure does not go far enough.

I inquired previously about the holiday on capital gains tax of seven years for property buyers. Does the Minister agree that it is a dangerous move because in conjunction with the previous resolution on stamp duty it could give rise to property speculation again whereby people could buy up property, sit on it for seven years and benefit from the capital gains tax holiday?

Deputy Richard Boyd Barrett: It is wrong that these measures are grouped together.

Deputy Jonathan O’Brien: I agree.

Deputy Richard Boyd Barrett: The resolutions contain measures that I would broadly support, although I would have questions about them even where I support the principle. In so far as we are talking about increasing taxes on capital gains, when one is talking about people who have lots of capital and assets to hand on, then people should be taxed to a significant extent. It is an inadequate measure in the direction of the more serious measures we in the [954]United Left Alliance proposed for a wealth and assets tax. However, at least it vaguely points in the right direction. I wonder why there are no bands to discriminate between people with lots of money and assets to hand on and those who are just ordinary members of the public who have a few quid or a small amount of assets to hand on to their family. We should have bands that discriminate between those who have a lot and those who have a little in terms of applying extra taxation.

By the same token, I am worried about the DIRT tax because it affects the small saver, the ordinary person, who is putting a few quid aside for his or her children. The tax does not distinguish between them and people who have lots of money and who should be taxed significantly.

I have the same concern about applying extra tax to life assurance policies and investment funds. Will the Minister elaborate on the application of the tax? Does it refer to all life assurance policies and all investment funds because, again, I know some ordinary working class people who got a few bob in redundancy payments or from another source and the bank advised them to invest it in a particular investment fund to gain interest. That could literally be their life savings. I do not like the idea of them facing increased taxes but when one talks about the bulk of hoarded assets and savings in the hands of a tiny minority that has vast amounts of wealth and assets, as we outlined in our budget submission, the latter group should face significantly higher extra taxes than what is being proposed, much of which is tokenistic but may inadvertently hurt the small saver or investor in a life assurance fund. I am concerned about those issues even though some of the measures are vaguely progressive. I would welcome more elaboration on the resolutions by the Minister. Unless I get support from the House it is probably not worthwhile calling a vote on this. However, other Deputies may wish to comment on my views or the Minister may wish to refute the concerns I have raised.

Deputy Seán Crowe: The Minister proposes to reduce the inheritance tax threshold from €333,084 to €250,000. This is an issue which many people face at some stage in their lives. Many people who are listening to this debate may be interested, and perhaps worried, about this measure. How was the figure of €250,000 arrived at?

In many cases a family home, valued at approximately €300,000 may be inherited by children. Does the threshold apply to an entire family? If the home is inherited by two or three siblings does the threshold apply to each sibling? This is an important issue because many people face this situation at some time in their lives or they may be facing it at present. Rather than create more worry for bereaved families, could the Minister expand on this matter?

Deputy Richard Bruton: Deputy Jonathan O’Brien spoke about the cut in stamp duty and the provision whereby a person who buys a property now and keeps it for a certain period can get a holiday from capital gains tax.

The property sector has collapsed and with it activity in the construction sector has dropped by approximately 90%. There has been a huge lay-off of employees in this sector and it is operating far below what would be standard in an economy of our size and activity. In the present market conditions, there is no fear of property speculation, with people chasing rising prices and a false boom being created. Our difficulty is the opposite. There is no confidence to come into the market and no one is buying. That has knock-on effects.

Other Deputies raised the issue of NAMA. If NAMA, which is charged with the responsibility for recovering for the taxpayer as much as it can from the loans it holds, is faced with a dead property market the taxpayer loses out. However, I see no fear of what has been suggested in this regard. Subsequent budgets can always look at these aspects again.

[955]In the past, people felt the boom would go on forever. Even when we went far above standard relationships between property values and incomes, people were still cheerleading the boom and saying property could not fail. We are in a different climate now. These are cautious measures which will restore confidence to a sector which is very important to many people’s futures.

Deputy Boyd Barrett raised the issue of a progressive scale within the capital acquisitions tax. There has always been a steep rise in the basic rate of capital acquisitions tax and a progressive reduction in the thresholds people enjoyed. It has been a relatively simple structured capital tax and has, by and large, applied the same rate as the capital gains tax. In recent years the rate has gone from 20% to 30% and the exemption threshold has come down very dramatically from approximately €500,000 to about €250,000. This has made the tax more progressive. Where the inheritance or gift is significant a large part of the sum is taxed at 30% whereas previously there was a significant exemption threshold and a much lower rate. This will extract much more revenue from inheritances than has been the case in the past.

Capital acquisitions tax has been designed so that the progressivity is related to the relationship of the giver to the receiver. The threshold for an inheritance of a child from a parent is €250,000, for a inheritance of a nephew from an uncle it drops to €33,000 and for a gift from an unrelated person the threshold is €16,000. The more distant the relationship the lower the threshold. The structure has a fairness built into it, even though it is not a traditional progressive rate.

Deputy Crowe asked why the €250,000 threshold was arrived at and mentioned the family home. The threshold is pitched at a level where a modest inheritance from a parent to a child would not be hit. Each child enjoys the threshold. If a house that is worth €400,000 is divided between two children neither of the children will pay any tax on the transfer of the home.

The figure of €250,000 reinstates the relationship between group A — parents and children — and group B — uncles and nephews, for example — which applied in 1999. I do not know if that is why the figure was arrived at, but that is what it does. During the years when the tax was watered down, particularly when the former Deputy McCreevy was Minister for Finance, the thresholds and rates became much more favourable to inheritances by children from parents than to inheritances by nephews from uncles. This undermined the entire tax, because most inheritances pass from parent to child. By bringing this threshold back into the relationship it had some years ago we will generate more revenue. It is expected that 30% of the revenue will come from group A, even though they have massively higher thresholds. This measure is designed to get even more from estates.

In the case of the transfer of a business the tax code allows for relief to keep the business intact. The transfer of stocks and shares gets the full brunt of the tax whereas the transfer of a going concern from a parent to a child would pay a lower tax. There is a fairness built into the measure.

Deputy Boyd Barrett raised the issue of DIRT. One can argue about how interest should be taxed. Some people would argue that it should take account of inflation. The DIRT system was introduced because it was decided that the simplest administration was to have an across-the-board tax on all interest which was easily collected by the Revenue Commissioners. It was a full and final settlement. That resulted in the flat rate. It was a simple way for Revenue to collect tax from bank deposits. If people are generating other investment income they pay on a progressive scale in accordance with the normal income tax rate. The super wealthy are less likely to have money in bank deposits or in life insurance products than ordinary people. DIRT was seen as a fair way to get a full and final settlement in respect of the types of investment ordinary people choose. More sophisticated investors, who would be in stocks and shares, [956]would pay tax at their normal marginal tax rate, which would be 41% plus PRSI and whatever else applied. That is my understanding of the origin of the DIRT. What this proposal does is impose a uniform rate of 30% across CAT, CGT and DIRT and settles the minimum tax people must pay. People can no longer, unlike under the regime introduced some years ago, use allowances to reduce their incomes to a level at which they will pay no tax. People above a certain income may reduce it only to a level at which they must pay 30% on the income. That same rate applies across the board. The tax applies uniformly and is seen as an efficient way to raise tax.

Deputy Michael McGrath: I am sure I am missing a simple point, but it is late. With regard to the change in the thresholds relating to CAT in financial resolution No. 9, the Schedule we got today states it is reducing the group A tax free threshold from €332,084 to €250,000, but in the resolution the figure is different. Is that because of a linkage or reference point?

Deputy Richard Bruton: It is the reference point. The year 2003 is the reference point.

Deputy Michael McGrath: Okay, it is a reference point issue. On financial resolution No. 11, which relates to DIRT, I received an e-mail from someone recently who argued that DIRT should be extended to some of the An Post products, such as savings bonds and saving certificates. I am not making that argument, but the person who e-mailed cited a figure that I cannot recall now, but which would yield huge revenue for the State if DIRT was extended. Has that ever been considered and has the Minister an estimate of what it would bring in?

Deputy Richard Bruton: My understanding is that the 2003 Act is the parent Act and indexation applies to this allowance. Effectively, the difference between the €183,688 and the €250,000 is the indexation since 2003 to 2011. I do not have the answer to the question on An Post products, but I presume that savings bonds, being an An Post product, were given a tax free status, much like that Government paper has. I suppose this was to encourage people to lend to the Government for infrastructural projects or whatever the Government is doing. They are sold on the basis they are tax exempt. That has been their selling point and, obviously, they allow the Government raise moneys a little more cheaply.

An Leas-Cheann Comhairle: In accordance with the order of the Dáil of this day, I am now required to put the question.

Question,”That Financial Resolutions Nos. 8 to 12, inclusive, be agreed to”, put and declared carried.

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): I move:

THAT it is expedient to amend the law relating to inland revenue (including value-added tax and excise) and to make further provision in connection with finance.

This is a general resolution to underpin all the others.

Debate adjourned.

The Dáil adjourned at 11.35 p.m. until 10.30 a.m. on Wednesday, 7 December 2011.

————————

The following are questions tabled by Members for written response and the ministerial replies as received on the day from the Departments [unrevised].

————————

1. Deputy Kevin Humphreys asked the Taoiseach if he will ask the Central Statistics Office to prepare as soon as is possible revised population projections for the next 20 years following on from census 2011, in view of the fact that the last projections date from December 2008 and the next projections are not due until 2013, and the current figures, crucial for long-term strategic planning do not take into account the most recent census preliminary figures and the effect of the recession and return of emigration; and if he will make a statement on the matter. [38795/11]

Minister of State at the Department of the Taoiseach (Deputy Paul Kehoe): Population projections are prepared every 5 years following the publication of the census results. The most recent set of projections are based on the 2006 results and cover the period 2011 to 2041. All population projections are based on assumptions regarding future migration and fertility patterns. As population projections for Ireland are particularly sensitive to changes in migration, the 2006 based projections included a zero net migration assumption as an indicator of how our population would develop when immigration equals emigration.

The next set of projections will be based on the 2011 results. Processing of the 2011 Census forms is now nearing completion in the CSO’s census processing centre in Swords and it is planned to publish the first definitive results of the census in March 2012, less than a year after Census day. Work on the Census 2011 based population projections will begin once these results are published. Specifically, after a process of consultation with a dedicated expert group (made up of representatives of central and local government, universities and research bodies, along with relevant CSO personnel) it is planned to begin work on these projections in the first half of next year with the aim of releasing population projections covering the period 2016 to 2046 before the end of 2012.

2. Deputy Brendan Griffin asked the Taoiseach the grants and amounts paid by him to community and voluntary groups in Galway city and county to date in 2011; and if he will list the chairperson, secretary and treasurer of each group that were beneficiaries of same. [38346/11]

[958]The Taoiseach: No funding has been paid by my Department to any groups in Galway city and County to date in 2011.

3. Deputy Michael McGrath asked the Taoiseach the estimated cost to his Department of a 2% increase in the standard rate of VAT; and if he will make a statement on the matter. [38470/11]

The Taoiseach: A 2% increase in the standard rate of VAT would cost my Department approximately €8,200.00 per year.

4. Deputy Eoghan Murphy asked the Tánaiste and Minister for Foreign Affairs and Trade when he intends to make an official visit to China; and if there are plans for senior Ministers to make official visits in 2012. [38801/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): The Government attaches great importance to widening and deepening bilateral relations with China. China is a key high-growth and high-potential market for Ireland under the Strategy and Action Plan for Irish Trade, Tourism and Investment to 2015. The local market team, set up under the Strategy, includes all of the State Agencies present in China in addition to the Embassy in Beijing and the Consulate-General in Shanghai. The team is chaired by our Ambassador in Beijing and has been actively working to build on our growing economic and trade relationships with China. Ireland had a modest trade surplus with China in 2010. Total merchandise trade between Ireland and China was worth almost €5.3 billion in 2010. Trade in services during the same period was worth €2.1 billion. Over 130 Irish companies now have a permanent business presence in China — an increase of 300% over the last five years.

I very much hope to visit China next year in order to build on the excellent bilateral relations that exist between our two countries; to have discussions with my opposite number in China on matters of mutual concern; to promote Irish interests; and to further enhance our political, trade, investment, education and tourism links with China. As the Deputy will appreciate, a visit must take place at a time mutually convenient for my Chinese counterpart. This will be arranged between the Irish and Chinese sides through diplomatic channels.

As the Deputy will be aware, Government Ministers generally commit to official visits abroad based on the demands of their portfolio. I am not aware of any confirmed travel plans by other Ministers in relation to China, although the Deputy will be aware that the Taoiseach also intends to visit China in 2012.

5. Deputy Terence Flanagan asked the Tánaiste and Minister for Foreign Affairs and Trade if he will reverse the decision to close Ireland’s embassy to the Vatican; and if he will make a statement on the matter. [38300/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): It was with the greatest regret and reluctance that the Government decided to close Ireland’s Embassy to the Holy See. This decision is in line with the tough choices that the Government must make to address the current economic challenges that face the country. Our targets under the EU/IMF programme and our need to reduce public expenditure mean that cuts to public expenditure must be made across a wide range of public services, including the diplomatic service.

[959]The decision followed a comprehensive review of the overseas diplomatic network in which particular weight was given to the promotion of Irish economic interests and the economic return from Missions abroad.

The conclusions reached on foot of this survey reflect the Government’s view of how the diminished resources available to my Department can best be deployed to represent the State’s interests abroad at the present time.

Ireland will maintain diplomatic relations and continue its active engagement with the Holy See through our non resident Ambassador, a position to which the Government has nominated a senior Dublin-based diplomat, and the Papal Nuncio to Ireland, who I look forward to welcoming to Ireland soon.

The Government will continue to review the deployment of our diplomatic service, including in relation to the Holy See, in the light of our evolving needs and the resources available.

6. Deputy Brendan Griffin asked the Tánaiste and Minister for Foreign Affairs and Trade the specific grants and amounts paid by him to community and voluntary groups in Galway city and county to date in 2011; and if he will list the chairperson, secretary and treasurer of each group that were beneficiaries of same. [38340/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): My Department has funded four groups based in Galway in 2011. Irish Aid operates a Development Education Funding Scheme to promote development education programmes in formal and non-formal education in Ireland, including the community and voluntary sectors In 2011, funding was provided for a range of public cultural activities which supported Irish Aid’s objectives for Africa Day of promoting public awareness and understanding of Africa and of development themes. Africa Day grants were provided to organisations for events in Dublin, Cork, Limerick and Galway with the maximum grant set at €10,000 and the minimum at €2,000 to allow a focus on a reasonably small number of good quality events. Two groups in Galway were awarded funding as part of this scheme. In 2011, I also approved an Emigrant Support Programme Grant for South East Galway Diaspora Project (“Ireland Reaching Out”). Ireland Reaching Out (IXO), established in 2010, aims to develop a framework whereby local communities identify and engage with members of the diaspora around the world who were originally from that local area. IXO organised a very successful “Week of Welcomes” between 26 June and 2 July to which those identified as having roots in the south east Galway (including Portumna, Gort and Loughrea) were invited.

The details of the four funding recipients are provided in the following table:

Scheme	Organisation	Amount €	Chairperson	Secretary	Treasurer
Development Education Funding Scheme	Galway one World Centre	79,369	Sean Conneally	Trisha Buddin	Heike Vornhagen
Africa Day Grants	Galway one World Centre	7,000	Sean Conneally	Trisha Buddin	Heike Vornhagen
Africa Day Grants	Spirit of Voice Productions	4,500	Director:Gerry Mulkerrins	Lorna McDowell	Gerry Mulkerrins
Emigrant Support Programme	Ireland Reaching Out(IXO)	67,775	Michael Feerick		Gerard McInerney

7. Deputy Alan Farrell asked the Tánaiste and Minister for Foreign Affairs and Trade the increments made payable to public sector workers within his Department in the years 2010 and 2011; the increments due in 2012 in tabular form; and if he will make a statement on the matter. [38360/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): The information requested by the Deputy is set out in the following table:

Year	Number of Increments Awarded	Estimated Cost for the Year in Question
2010	704	€601,880
2011	608	€569,102
2012*	497	€421,754

*Projected figure only: the award of increments is not automatic and is subject to satisfactory assessment.

It should be noted that the annual cost figures are estimates based on a pro-rata calculation of the value of the annual salary increase due to the increment. For example, if an officer was awarded an increment in January, the full annual value of the increase is taken into account. If an increment is awarded in December, only one twelfth of the annual value is allowed in the calculation. The estimates also do not include any consequential PRSI increases which would not be very significant in most cases. While this is not 100% accurate, I understand that it gives a reasonably close approximation of the overall cost of increments for the years in question.

With regard to the estimate for 2012 it must be stressed that increments are awarded to staff only following receipt of satisfactory annual assessments under the Performance Management and Development System, which operates across the Civil Service for grades below Assistant Secretary level. Attendance records, with particular regard to sick leave and punctuality, are also taken into consideration.

8. Deputy Michael McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade the estimated cost to his Department of a 2% increase in the standard rate of VAT; and if he will make a statement on the matter. [38464/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): My Department’s financial management system does not currently track VAT separately and payments are recorded on a VAT-inclusive basis. Therefore, it is not possible to give a definite answer to the Deputy’s question based on the current level of VAT payments. In addition, much of the Department’s expenditure on goods and services takes place overseas which involves VAT and excise arrangements at many different rates in many other jurisdictions outside of Ireland.

9. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade further to Parliamentary Question No. 11 of 2 November 2011, if a decision has been reached in respect of an application for an Irish passport in respect of a person (details supplied) in Dublin 15; and if he will make a statement on the matter. [38597/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): As I indicated in my reply to the Deputy’s question on 2 November, 2011, this case has been the subject [961]of detailed legal considerations. The core issue of the case centres on her entitlement to Irish citizenship. This entitlement is directly dependent on the amount of her mother’s residence in the State that is reckonable for the purposes of the Irish Nationality and Citizenship Act, 1956 as amended (the Act). On the evidence of immigration stamps, which were issued to the applicant’s mother, the amount of reckonable residence is insufficient to demonstrate her daughter’s entitlement to Irish citizenship. However, the additional evidence of a letter, dated 24 March, 2009, from the then Department of Justice, Equality and Law Reform was presented in support of the application. If the additional residence arising from this evidence was deemed to be reckonable for the purposes of the Act, the applicant’s entitlement to Irish citizenship (and thereby a passport), would be demonstrated. This aspect has been the subject of a High Court judgement, which was delivered on 9 July 2010 by Justice Ryan in Sulaimon v. Minister for Justice . The interpretation of this judgement has been the subject of discussions between my Department and the Department of Justice and Equality, the latter of which is responsible for citizenship and immigration matters. These discussions were later extended to include officials from the Offices of the Attorney General and the Chief State Solicitor.

From this meeting it has emerged that the judgement poses a number of difficulties in terms of its implementation in the area of citizenship and immigration, which will feature in a Supreme Court appeal. I understand that the Department for Justice and Equality is now seeking an appeal of this judgement at the earliest opportunity.

I can confirm that this application falls in this category and officials of my Department have referred the case to the Department of Justice and Equality. While I appreciate that this situation will be disappointing for the applicant’s mother, I can assure the Deputy that if the applicant succeeds in obtaining a certificate of nationality for her daughter, the Passport Service will issue a passport to her as a matter of priority.

10. Deputy Joanna Tuffy asked the Tánaiste and Minister for Foreign Affairs and Trade the position regarding the relief efforts in Haiti and the urgent need for adequate funding to be made available that will be used to assist the victims affected by the 2010 earthquake; and if he will make a statement on the matter. [38723/11]

Minister of State at the Department of Foreign Affairs and Trade (Deputy Jan O'Sullivan): The devastating earthquake which struck Haiti on 12 January 2010 was the greatest disaster to hit the country in more than 200 years, killing more than 230,000 people and destroying swathes of the capital, Port au Prince. Among the survivors, more than 1.5 million people were made homeless and forced to take refuge in makeshift camps.

Almost two years on, while the international relief effort has made good progress, the humanitarian situation across the country remains fragile, with the sheer scale of the devastation wrought by the 2010 quake leaving a lasting legacy of displacement and destruction. While the number continues to decrease, approximately 550,000 people remain displaced in the country and large quantities of rubble remain. The quantity of rubble caused by the earthquake was estimated at more than 20 times that left behind following the attack on the World Trade Centre in New York in 2001, which itself took more than 18 months to remove.

Against this backdrop, Ireland pledged funding of €13 million for Haiti for the period 2010-2012 at a donor conference in New York in March 2010. By the end of this year, €11.5 million of this will have been disbursed and it is intended that the entire pledge will be met by early 2012.

[962]In allocating financial support for Haiti, Ireland has prioritised the needs of the most vulnerable populations, including women and children as well as the basic humanitarian needs of the population more generally. This follows the recommendations of an assessment mission which visited the country following the earthquake, which advocated an Irish focus on protection, as well as clean water and sanitation, early recovery and shelter. Support has been provided to UNICEF, Concern, Goal, Plan, World Vision and Haven for the provision of clean water, shelter and sanitation to the affected population. Funding of €1 million has also been provided to the Haiti Reconstruction Trust Fund for projects managed by the World Bank in line with priorities agreed with the Haitian authorities.

In addition to financial support, Irish Aid has carried out 18 deployments from its Rapid Response Corps to Haiti following the quake and these experts have been able to assist UN and other agencies to work in areas such as logistics, engineering and water and sanitation.

Looking ahead, it is vital that the international effort, led by the Interim Haiti Reconstruction Commission, steps up its efforts to ensure adequate progress in recovery and reconstruction while simultaneously addressing the immediate humanitarian needs of the population, particularly vulnerable groups such as women, children and people with disabilities. Ireland will continue to play its part in encouraging and assisting in this recovery.

11. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Foreign Affairs and Trade if he is concerned following recent developments in the Congo and the recording by the UN of many instances of election-related violence; and if he will make a statement on the matter. [38778/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): Presidential and parliamentary elections were held on 28 November in the Democratic Republic of the Congo (DRC). The results of the presidential election are expected to be announced on 6 December, and the parliamentary results on 13 January 2012. Ireland is following the ongoing electoral process closely with our European Union partners and through the United Nations presence in the DRC. The European Union has deployed an election observation mission, consisting of 147 observers spread throughout the country. Six Irish observers are participating in the mission. In a preliminary statement issued on 1 December the European Union election observation mission noted that the election had experienced many difficulties due to poor infrastructure and a very tight schedule. In addition a number of concerns were raised on the conduct of the elections by the Commission Électorale Nationale Indépendante. A number of fatalities associated with the election have also been reported. The European Union election observation mission will announce formal conclusions on the election on the completion of the electoral process. This report will be made public and will be provided to the appropriate authorities in the DRC.

The United Nations has sought to enhance stability in the DRC through the work of MONUSCO, formerly MONUC, the UN’s largest peacekeeping mission. MONUSCO’s current strength is just under 20,000 troops, military observers and police, along with over 3,500 international and local civilian staff and approximately 600 UN volunteers. Over 50 countries, including Ireland, contribute military personnel to the mission. MONUSCO is a Chapter VII mission under the UN Charter, which means it is authorised to use all necessary means to carry out its protection mandate, including the effective protection of civilians, humanitarian personnel and human rights defenders under imminent threat of physical violence, as well as the protection of United Nations personnel, facilities, installations and equipment. On 28 June, [963]the mandate of the mission was extended until 30 June 2012. MONUSCO is providing logistical support for the electoral process.

Since 2010, Ireland has disbursed more than €13 million in response to the needs of the population in the DRC. To date in 2011, Ireland has allocated a total of over €5 million in emergency funding to the DRC via the UN administered pooled fund and through our NGO partners. Of this €1.5 million has been allocated to NGO partners. With our partners in the EU and the wider international community, Ireland will continue to work to bring an end to the conflicts which persist in the DRC, to address immediate humanitarian needs, and to help develop the capacity of the Congolese state to govern and protect its people.

12. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Foreign Affairs and Trade his views that the conflict resolution unit in his Department is utilised to the full; and if he will make a statement on the matter. [38779/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): As the Deputy will be aware, the allocation of the Department’s scarce human and financial resources to priority areas is kept under constant review. As I outlined in my reply of 29 November, the Conflict Resolution Unit (CRU) within my Department is engaged in a wide range of activities designed to ensure that the lessons of Ireland’s unique experience of conflict can be shared internationally. The Unit’s experience will be of particular importance in the context of Ireland’s upcoming Chairmanship-in-Office of the Organisation for Security and Cooperation in Europe (OSCE). The cooperation between the CRU and officials engaged in preparations for the Chairmanship, under a shared director, is an example of my Department assigning resources to key priority areas, in a manner that ensures maximum effectiveness and takes full advantage of synergies between complementary work areas.

13. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Foreign Affairs and Trade his views that there will be a peaceful transition to democracy in Egypt; if this issue has been discussed at length at the EU Council; and if he will make a statement on the matter. [38780/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): The Government is closely monitoring the transition period in Egypt, and welcomes the well-organized and peaceful first phase of the parliamentary elections in Egypt on 28 November as well as the significant voter turnout which demonstrates the engagement of the Egyptian people in the political transition. Together with our EU partners, Ireland will continue to emphasise the need for the electoral process to continue in a transparent manner and in compliance with international standards. I again call upon the Egyptian interim government to allow international election monitors at future elections as Egypt continues its transition towards democracy. I also note the Supreme Council of the Armed Forces’ (SCAF) recent announcement that Presidential elections would be held before the end of June 2012. The EU Foreign Affairs Council discussed the situation in Egypt on 1 December. Ministers agreed Conclusions on Egypt, which I fully support, which welcomed the first phase of the parliamentary elections and expressed deep concern about the violence and unrest that took place prior to the first round of elections. The Council deplored the loss of life and high number of injured in recent clashes, and condemned the excessive and unacceptable violence committed by the security forces against the demonstrators. The Council urged restraint on all sides and calls for an independent investigation bringing those responsible for violence to justice. The Council also urged the authorities to uphold the rule of law and respect for human rights. I would again urge the SCAF to end the thirty year long State of Emergency, as a demonstration of its commitment to facilitating [964]real change and reform in Egypt. The next six months or so will be a crucial time for Egypt in its democratic transition and it is vital that the interim ruling military council ensure that there is no repeat of this violent repression of protests.

The SCAF has the responsibility of protecting the democratic rights of the population and must ensure that power — including oversight of the military — is fully transferred as soon as possible to a representative, inclusive civilian government, that has all the necessary authority to lead Egypt through its transition process. The lack of clarity about, and length of, the transition has adversely affected the economic situation in Egypt, which makes it even more urgent to have representative authorities able to engage in the necessary social and economic reforms and to make effective use of available international assistance.

Ireland and the EU will continue to stand by Egypt and its people in their quest for freedom and a democratic transition based on the goals of deep and sustainable democracy and inclusive economic development.

14. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Foreign Affairs and Trade if he supports the sanctions imposed by the Arab League on Syria; and if he will make a statement on the matter. [38781/11]

Tánaiste and Minister for Foreign Affairs and Trade (Deputy Eamon Gilmore): Ireland fully supports the sanctions, including an asset freeze and an embargo on investments, imposed by the Arab League on Syria on 27 November. The purpose of these measures, and other international political and diplomatic actions against Syria, is to increase the pressure on President Assad and his supporters so that they immediately end the violence against the Syrian people, begin inclusive dialogue, and start a process of transition. The Government, together with its EU partners, welcomes the leadership which has been shown by the Arab League in tackling the crisis caused by the Syrian regime’s lethal repression against its own citizens. Ireland and other EU member states were amongst the co-sponsors of a resolution on the human rights situation in Syria adopted by the UN Human Rights Council’s Special Session on Syria on 2 December. The resolution commends and supports the efforts and measures by the Arab League and calls upon the Syrian authorities to implement the Arab League’s Plan of Action — which President Assad agreed to — in its entirety without further delay. The resolution also urges Syria to sign a draft Protocol on the Arab League’s proposed observer mission to Syria.

The Arab League sanctions are a clear sign that international political and diplomatic pressure is intensifying against Syria. Turkey also announced sanctions against Syria on 30 November and the EU Foreign Affairs Council agreed on 1 December additional measures related to the energy, financial, banking and trade sectors, as well as the listing of additional individuals and entities involved in the violence or supporting the regime. This comes on top of extensive existing EU measures, including a ban on oil imports from Syria. At UN level, the UN General Assembly’s Third Committee adopted a resolution on human rights in Syria on 22 November while the independent International Commission of Inquiry mandated by the HRC last August issued a report on 28 November, in which it stated its grave concern that Syria’s security forces have committed “crimes against humanity” in their continuing crackdown on anti-government protesters. It is hoped that the UN Security Council will also step up to its responsibilities and soon agree a robust resolution on Syria.

Ireland, the EU and international partners such as the Arab League, the US and Turkey are determined to maintain strong and united political pressure on the Syrian regime until it ends the violent repression against its own people and begins a process of transition.

15. Deputy Maureen O’Sullivan asked the Minister for Finance if a scheme such as Revenue job assist will be implemented specifically for long-term unemployed graduates; and if he will make a statement on the matter. [38855/11]

Minister for Finance (Deputy Michael Noonan): Sections 88A and 472A of the Taxes Consolidation Act, 1997 provide for the Revenue Job Assist scheme, which allows tax relief for employers and employees in situations where an individual commences work having previously been long term unemployed. The scheme operates by providing a double deduction from Income Tax and PRSI for 3 years for employers that employ a person who has been unemployed for a minimum of 12 months. The employee receives an additional tax-free allowance on a sliding scale for the same time period.

In order to qualify for the scheme, the employer must not have made any staff redundant in the 26 weeks prior to the recruitment and must offer a job for a minimum of 30 hours a week with a contract for at least 12 months.

In order for the employee to qualify, they must have been continuously unemployed for the previous 12 months.

Any individual who has been unemployed for the previous 12 months and is in receipt of a payment from the Department of Social Protection can qualify for this scheme, including graduates. Therefore I see no need to introduce a scheme that would only apply to graduates.

16. Deputy Micheál Martin asked the Minister for Finance if he has considered or will consider changes to competition law to deal with what the Financial Regulator recently referred to as the dysfunctional nature of the banking market and which he cited as one of the main factors preventing ECB mortgage interest rate cuts being passed on. [38310/11]

Minister for Finance (Deputy Michael Noonan): Neither the Central Bank nor I, as Minister for Finance, have a statutory role in the setting of interest rates charged or paid by financial institutions in Ireland regulated by the Central Bank. In a recent letter to the Taoiseach, the Deputy Governor of the Central Bank stated that the power to exercise close regulatory control over retail interest rates is not sought by the Central Bank at this time. The Deputy Governor goes on to point out the difficulties which would result from Central Bank powers to set interest rates. These include a reduction in the availability of credit particularly to less secure customers, a chilling effect on entry of sound competitors in the market and an impediment to progress towards the re-establishment of bank management practices that could ensure a healthy and free standing banking system no longer dependent on the Government for bail outs.

Based on the advice received from the Central Bank I have no plans to recommend to Government that they introduce legislation to compel lenders to reduce their standard variable rates. However, I will keep the matter under review.

17. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 53 of 24 November 2011, the number of legal cases taken by each of the banks named for each of the years detailed; the number of repossessions sought and secured by each bank in each respective year; the number of repossessions of domestic properties by bank and by year; and if he will make a statement on the matter. [38331/11]

[966]Minister for Finance (Deputy Michael Noonan): I have requested that the Covered Institutions to supply responses to the respective follow up questions, and I will write to the Deputy in this regard, as soon as the information is to hand.

18. Deputy Brendan Griffin asked the Minister for Finance the specific grants and amounts paid by him to community and voluntary groups in Galway city and county to date in 2011; and if he will list the chairperson, secretary and treasurer of each group that were beneficiaries of same. [38339/11]

Minister for Finance (Deputy Michael Noonan): My Department has no function in this particular matter.

19. Deputy Alan Farrell asked the Minister for Finance the increments made payable to public sector workers within his Department in the years 2010 and 2011; the increments due in 2012 in tabular form; and if he will make a statement on the matter. [38359/11]

Minister for Finance (Deputy Michael Noonan): In my Department, the following increments have been made payable in the years in question:

2010 — 261 increments paid to Department of Finance staff members

2011 — 171 increments paid, to date, to Department of Finance staff members

It is not possible to provide the Deputy with the number of increments that will be paid in 2012 as payment of increments is subject to sick leave and punctuality requirements in addition to receipt of the appropriate annual rating under the Performance Management and Development System 2011.

20. Deputy Ann Phelan asked the Minister for Finance in view of continued public protest against the effects on pensioners of the pensions levy and his assurances that the industry is not passing it on to pensioners if he will clarify the position; and if he will make a statement on the matter. [38369/11]

Minister for Finance (Deputy Michael Noonan): A stamp duty levy of 0.6% applies to the market value, on the valuation date, of assets under management in pension funds and pension plans approved under Irish tax legislation. The levy is a charge for a temporary period on the significant assets of pension funds, much of which are represented by investments outside of Ireland, in order to fund the Jobs Initiative introduced earlier this year. The various measures in the Initiative represent the first steps by this Government towards improving the competitiveness of important sectors of the economy and facilitating the return to work of people currently unemployed. The levy is a reasonable and targeted tax measure being introduced to fund the various measures set out in the Jobs Initiative. The country is facing an economic and unemployment crisis and the Jobs Initiative will help tackle that crisis and applying a temporary levy to pension funds is less damaging economically than raising other taxes.

Individuals may be affected in different ways by the pension fund levy. I am not in a position to comment on what the precise impact of the levy will be in all cases on individuals or individual funds, schemes, members or retired members as this depends, for example, on whether and to what extent pension fund trustees and Life Offices decide to pass on the levy to individual [967]members, given the particular circumstances of the pension funds or pension plans that they are responsible for. I can say that the Finance (No 2) Act 2011 provisions include certain safeguards in this area. The payment of the levy is treated as a necessary expense of a scheme and the trustees or insurer, as appropriate, will be entitled where needed to adjust current or prospective benefits payable under a scheme to take account of the levy. However, should the option of reducing scheme benefits be taken, it must essentially be applied in an equitable fashion across the different classes of scheme members that could include active, deferred and retired members. In no case may the reduction in an individual member’s or class of member’s benefits exceed the member’s or class of member’s share of the levy.

The Revenue Commissioners are afforded oversight authority to review, where they consider it appropriate, instances where benefits are adjusted as a result of the payment of the levy to ensure that any such adjustment is in keeping with the requirements of the levy legislation. In undertaking any such review Revenue may consult with appropriate experts as they see fit. However, before Revenue could act in that regard, instances of concern on foot of actual adjustments made would first have to be brought to their attention.

I believe that there is scope for the pension fund industry to absorb the impact of the temporary pension scheme levy by way of a reduction in the fees and charges made on those schemes. I have raised this issue at face-to-face meetings with representatives of pensions industry and in writing. The response from the industry has to date not been particularly positive in this respect. There have been calls to force the industry to absorb the levy through legislation but I do not consider that this approach, regardless of the circumstances from case to case, would be the most appropriate action at this time.

A group has been established to examine charges in the pensions industry. The group is chaired by the Department of Social Protection with representatives of the Central Bank and the Pensions Board. This study will provide an initial benchmark on the level of pension charges for different forms of funded supplementary pension arrangements and will provide information in relation to disclosure of charges. These data have not been available to date so the study will provide valuable information to inform policy. When this information on pension charges becomes available, I will consider how it may be used to advance the issue of the industry absorbing the impact of the pension fund levy.

21. Deputy Robert Troy asked the Minister for Finance if he will facilitate a manual tax return for a person (details supplied) in County Westmeath. [38388/11]

Minister for Finance (Deputy Michael Noonan): I am advised by the Revenue Commissioners that their office in Athlone has been in contact with the named individual in relation to the mandatory e-filing obligation of his company. He has been advised that the obligation to Pay and File Tax returns electronically applies to the company (but not to his own personal Income Tax returns). The company has been advised that it has the right to appeal this decision. The named individual may, of course, continue to submit his own personal Income Tax returns to Revenue manually.

22. Deputy Brendan Griffin asked the Minister for Finance his plans to introduce a scheme to help persons who are in apartments or houses which are not suitable for their family size and find themselves in negative equity and unable to sell the apartment or house in the current climate; if he will consider a wavier scheme for persons who rent their properties in order that, [968]in turn, they can rent properties that suit their family requirements and because of this will not be eligible for mortgage interest relief and will be liable to pay tax to the Revenue Commissioners because they leased their own property. [38389/11]

Minister for Finance (Deputy Michael Noonan): As regards the possible introduction of new mortgage products for the situation described by the Deputy, the Central Bank has advised me that they wrote to all mortgage lenders to ascertain whether they were offering, or intended to offer, a mortgage product that would allow home owners to sell their existing home and transfer the negative equity portion of the original loan to the new loan. In response to the Central Bank’s letter, only a small number of mortgage lenders said that they would consider offering such a facility. A trial period commenced in mid-2011 and was due to be assessed by the Central Bank and the institutions involved before the end of the year. However the low level of activity makes it difficult to conduct a meaningful review at this time and the proposed review will not take place until the first half of 2012. Any institution offering such a facility may only do so in accordance with criteria agreed in advance with the Central Bank. As regards income tax relief against the profits from letting residential investment properties the Deputy might wish to note that in certain circumstances, partial tax relief is available against such profits. This partial tax relief is in respect of interest on money borrowed to purchase, improve or replace the property concerned. The level at which interest repayments can be claimed against tax for a residential rental property is currently 75%. The deduction for such interest is subject to compliance with the requirements of the Private Residential Tenancies Board. For tax relief purposes residential investment property is generally understood to be property from which the owner seeks to derive profits through lettings.

23. Deputy Maureen O’Sullivan asked the Minister for Finance if he will exempt all goods, excluding alcohol and cigarettes, retailing at less than €10 from any VAT increase in budget 2012; and if he will make a statement on the matter. [38421/11]

Minister for Finance (Deputy Michael Noonan): VAT is charged on the supply of goods and services, and the rate applying is subject to the requirements of EU VAT law with which Irish VAT law must comply. The EU VAT Directive provides that Member States must apply VAT to all economic activity, which includes the supply of goods. Member States must apply a standard VAT rate to the majority of goods and services, with the option of applying reduced rates of up to 15% in defined circumstances. In this respect, the VAT Directive does not allow for two separate standard VAT rates to apply, at 21% and 23% in this case if goods below €10 were to continue to be charged at the current standard rate. In addition, because of VAT competition rules, it is generally not possible to treat the supply of goods and services differently, based on their value.

24. Deputy Maureen O’Sullivan asked the Minister for Finance if he will exempt from any budget VAT increase on certain repairs for example shoe repairs, bicycle repairs and alterations to personal clothing, when the charge to the consumer is less than €25; and if he will make a statement on the matter. [38422/11]

Minister for Finance (Deputy Michael Noonan): The 2% VAT increase I announced recently relates to an increase in the standard VAT rate from 21% to 23%. The standard VAT rate applies to the majority of goods and services in the State including cars, petrol and auto-diesel, electrical equipment and CD/DVDs, alcohol, cigarettes and tobacco, telecommunications, furniture, cosmetics, adult clothing and footwear. However, I would point out that there will be no increase in VAT on all remaining goods and services that are currently liable to the 9% [969]and 13.5% reduced rates, the zero rate, or those items that are exempt from VAT. In effect, this means that there will be no VAT increase on most food, children’s clothes and footwear, oral medicines, tourism and restaurant services, housing, construction, domestic fuels, labour intensive services and general repairs and maintenance.

In this context, there will be no increase in the VAT on shoe repairs, bicycle repairs and alterations to personal clothing, as these services are subject to the 13.5% VAT rate which is not being changed in the Budget.

25. Deputy John Deasy asked the Minister for Finance his plans to change the provisions of section 35 of the Credit Union Act 1997, which is restricting credit unions ability to assist members; and if he will make a statement on the matter. [38429/11]

26. Deputy John Deasy asked the Minister for Finance his plans to seek a deferral of the proposed section 35 amendment pending the outcome of the upcoming strategic review of the credit union sector; and if he will make a statement on the matter. [38430/11]

27. Deputy John Deasy asked the Minister for Finance his plans to change the restrictions which are in place under section 35 of the Credit Union Act 1997, which limits the maximum amount of loans that can be issued in a month, based on cash flow, regardless of credit unions' existing loans to asset ratio; and if he will make a statement on the matter. [38431/11]

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 25 to 27, inclusive, together.

Section 35 of the Credit Union Act 1997 (Section 35) imposes limits on credit unions in relation to longer-term lending. The funding of credit unions is predominantly provided on a short-term basis in the form of on-demand savings and consequently the Section 35 limits are necessary for the protection of the financial stability of credit unions.

With regard to possible further amendments to Section 35, the Deputy will be aware that the Commission on Credit Unions is currently in place. Part of the Terms of Reference of the Commission is to examine the existing legislation and make recommendations on strengthening of the regulatory framework for the sector. I have agreed the recommendations contained in the Interim Report of the Commission which was published in October 2011. These recommendations will feed into new credit union legislation which is due to be published in June 2012. This will provide for the introduction of a Prudential Rule Book for credit unions in certain areas, including lending. Further additional changes to Section 35 were not proposed in the Interim Report. I understand, however, that the Commission will further examine the workings of Section 35 early in 2012 and may make recommendations in relation to it in its final report which is due at end-March 2012. I will consider any recommendations made by the Commission at that time.

28. Deputy John Deasy asked the Minister for Finance his plans to change the lending restrictions imposed by the Registrar of Credit Unions, which places a complete ban on credit unions lending commercial or business loans that is hampering small and medium enterprises; and if he will make a statement on the matter. [38432/11]

Minister for Finance (Deputy Michael Noonan): The imposition of lending restrictions is the responsibility of the Registrar of Credit Unions, who is the independent regulator for credit [970]unions. Within his independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members. This is part of normal regulation and supervision of the sector. As Minister for Finance, my role is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions. It would not be appropriate for me, as Minister for Finance, to examine or adjudicate on whether the placing of lending restrictions is necessary on a case by case basis. I believe that such action would represent interference in the work of the independent regulator.

The Registrar has put lending restrictions in place in order to protect the savings of members in credit unions and to ensure that credit unions focus on risks when making lending decisions. Restrictions are imposed on a case-by-case basis and are reviewed regularly. The type of lending restrictions can include maximum individual loan size, overall maximum monthly lending limits and restrictions on business lending.

The Registrar has advised that about 50% of credit unions are subject to lending restrictions at present. Almost all credit unions with a lending restriction have a maximum individual loan size restriction. Of the credit unions with lending restrictions:

70% can lend €20,000 or more to an individual member · Less than 4% of credit unions are restricted to loans of less than €10,000 to an individual member, and

Just 1 credit union is restricted to lending less than €5,000 per member. Commercial lending restrictions apply to approximately a third of credit unions. This does not preclude credit unions from lending small business type loans if appropriate in certain circumstances. As part of the work to build liquidity levels in the credit union sector, the Central Bank introduced maximum monthly lending limits in a number of credit unions. Currently, maximum monthly lending limit restrictions are in place in a small proportion of credit unions .

29. Deputy Marcella Corcoran Kennedy asked the Minister for Finance if his attention has been drawn to the fact that a person (details supplied) who was offered a head to head transfer to his Department; if this transfer will be facilitated; and if he will make a statement on the matter. [38443/11]

Minister for Finance (Deputy Michael Noonan): Head to Head transfers are permitted between provincial locations when both transferees are the most senior on the Central Transfer list and/or the Central Applications Facility (CAF) in their own location. Both Departments and both applicants must agree to the transfer. The Department (details supplied) approached my Department to facilitate a head to head transfer for their staff member. There were two people on the list in my Department. The usual transfer papers were exchanged and unfortunately for a variety of reasons the head to head transfers were not considered possible. Therefore no offer of a transfer was made to any person by either Department.

30. Deputy Michael McGrath asked the Minister for Finance the estimated cost to his Department of a 2% increase in the standard rate of VAT; and if he will make a statement on the matter. [38463/11]

[971]Minister for Finance (Deputy Michael Noonan): The estimated cost of a 2% increase in the standard rate of VAT, using 2010 as a reference year, is €158,000. Since the establishment of the Department of Public Expenditure in July 2011, my Department has operated a shared service arrangement with that Department in respect of certain goods and services acquired by one, or other, of the Departments. The estimate supplied covers the two Departments.

31. Deputy Joe McHugh asked the Minister for Finance if he will internally review the efficiency of collections by Revenue; if the fees charged by bailiffs represent value for money for taxpayers; and if he will make a statement on the matter. [38478/11]

Minister for Finance (Deputy Michael Noonan): I am satisfied that Revenue undertakes the task of securing the collection of the critical taxes and duties payable to the State in an efficient and cost effective manner. I am assured that Revenue management regularly carries out internal reviews of its collection systems to ensure maximum efficiency. And each year the Comptroller and Auditor General examines elements of the tax collection systems and of Revenue’s performance in this area. I have no plans for a separate review of the efficiency of Revenue’s collections processes at this time. Sheriff’s fees and expenses including those relating to bailiffs are set out in the Sheriff’s Fees and Expenses Order, (S.I. 644 of 2005). The current Order came into operation on 1 November 2005. The fees were set by the then Minister for Justice, Equality and Law Reform with the consent of the Minister for Finance.

I am satisfied that the fees reflect the principle that the costs of enforcement are carried by the non compliant individuals and businesses where Revenue is forced to take enforcement action in order to recover the taxes and duties due to the Exchequer.

32. Deputy Joan Collins asked the Minister for Finance the contingency plans in place for Ireland to produce its own currency in the event of the euro collapsing; and if he will make a statement on the matter. [38505/11]

Minister for Finance (Deputy Michael Noonan): There are many risks in the broad economic environment at present, which I must take into account in conjunction with my Department and the agencies that report to me. The euro is a firm and solid currency currently trading well against all the other major currencies. There is clearly no market expectation and there is certainly no Irish Government expectation, of any collapse in the euro. The Central Bank continues to produce euro currency.

33. Deputy Michelle Mulherin asked the Minister for Finance if it is possible to stagger the introduction of the proposed 2% increase in VAT to the higher rate over a period of time in ease of retailers so affected; and if he will make a statement on the matter. [38507/11]

Minister for Finance (Deputy Michael Noonan): While it is possible to change the standard VAT rate at different times, and thereby stagger any proposed VAT increase, this is not advisable. Firstly, to do so would cause significant difficulties in administration for businesses, practitioners and the Revenue Commissioners. In addition, to do so would cause uncertainty for businesses and consumers. Furthermore, staggering the proposed standard VAT increase would involve delaying the proposed measure which would mean reduced revenues for the Exchequer, which would have to be made up elsewhere in the tax system.

[972]

34. Deputy Robert Dowds asked the Minister for Finance if he will consider taxing children’s allowance given to wealthy families those with incomes of greater than €100,000 as part of budget 2012; and if he will make a statement on the matter. [38579/11]

Minister for Finance (Deputy Michael Noonan): As the Deputy is aware, I will be delivering my Budget for 2012 today. It is a long-standing practice of the Minister for Finance not to comment in advance of the Budget on any tax matters that might be the subject of Budget decisions.

35. Deputy Robert Dowds asked the Minister for Finance the criteria for supporting a person’s nomination to the European Court of Auditors; and if he will make a statement on the matter. [38589/11]

Minister for Finance (Deputy Michael Noonan): Article 286(1) of the Treaty on the Functioning of the European Union sets out the criteria for nomination to the European Court of Auditors stating that “Members of the Court of Auditors shall be chosen from among persons who belong or have belonged in their respective States to external audit bodies or who are especially qualified for this office. Their independence must be beyond doubt”. I presume the Deputy is referring to the nomination of Mr. Kevin Cardiff to the European Court of Auditors.

Mr Cardiff has been awarded the following qualifications:

Degree in History and Psychology University of Washington, Seattle, USA, 1983

Masters in Business Studies University College, Dublin 1991

Diploma in Applied Finance Law Law Society Ireland 2003

Mr. Cardiff also carries with him a long career of distinguished public service here and the credentials to do a first class job in respect of the European Court of Auditors.

Mr. Cardiff retains the Government’s full support as Ireland’s nominee to the European Court of Auditors.

36. Deputy Robert Dowds asked the Minister for Finance the steps he took to persuade Allied Irish Bank to pass on the recent interest rate change to its mortgage customers; and if he will make a statement on the matter. [38590/11]

Minister for Finance (Deputy Michael Noonan): On Thursday 3 November 2011, the Governing council of the ECB reduced the interest rate of main refinancing operations of the Eurosystem by 25 basis points to 1.25%, with effect from 9 November 2011. On Wednesday 9th November, The Taoiseach, the Tánaiste, the Minister for Public Expenditure & Reform and I met with the Chairman of AIB to discuss a number of matters including SME lending and SVR mortgage rates. The meeting had been scheduled prior to the interest rate cut. At that meeting, the Chairman of AIB was asked if he intended to pass on the ECB rate cut. The Chairman indicated that at that time the bank was not inclined to do so at which point it was requested of him that the bank reconsider its position in light of the current circumstances faced by mortgage holders across the country.

The following evening, on 10 November, the Board of the bank announced that it had decided to pass on the interest rate decrease to customers.

37. Deputy Eoghan Murphy asked the Minister for Finance if he will consider a revenue raising initiative which relates to taxation products and investment policy (details supplied). [38615/11]

Minister for Finance (Deputy Michael Noonan): The Deputy’s suggestion is to reduce the current eight year “deemed disposal” period for the imposition of tax on certain investment products. I am assuming the Deputy’s suggestion is that any proposed shorter period would apply to all products currently subject to the deemed disposal regime. I thank the Deputy for his suggestion which I will have considered, along with other potential tax measures.

38. Deputy Finian McGrath asked the Minister for Finance if there is any evidence that another tax amnesty would result in more revenue. [38643/11]

Minister for Finance (Deputy Michael Noonan): The prevention of fraud and abuse of the social welfare system is an integral part of the day-to-day work of my Department which processes in excess of 2 million claims each year and makes payments to some 1.4 million people every week. However, it is important to recognise that the vast majority of people are receiving the entitlement due to them.

Most social welfare customers fully declare their means and circumstances and, therefore, do not receive more than their entitlements. However, where a customer fails to fully declare their means or circumstances, they may receive payments to which they are not entitled and this can result in an overpayment. It is important that the Department seeks to recover overpayments where they occur and an overpayment debt will remain on the customer’s records until fully recovered. This will result in a reduction of all future entitlements up to and including state pension. Following the death of a customer who owes a debt, the Department will have a claim on any estate remaining.

Customers who are aware that they are being, or have been overpaid by the Department should contact their local social welfare office without delay. An overpayment recovery plan, acceptable both to the customer and to the Department, will then be agreed.

The Deputy may be aware that I recently launched a new Fraud Initiative (2011-2013) which is aimed at putting in place a range of actions to combat fraud and abuse of the social welfare system and to ensure there is public confidence and trust in the system.

39. Deputy Finian McGrath asked the Minister for Finance his views regarding the EBS interest rate (details supplied). [38648/11]

Minister for Finance (Deputy Michael Noonan): The merger of AIB and EBS was formally completed on 1 July 2011. Prior to the completion of the merger, each of the banks set their variable mortgage rates according to the levels, calculated by the respective management teams and boards, that was required for each of the institutions to operate as a commercially viable [974]entity in light of the challenging market conditions, the expected cost of funds, future impairments and ongoing operational costs. Notwithstanding the merger of the two banks, EBS continues to operate as a wholly owned subsidiary of AIB with its own individual banking license, brand and cost structure. This arrangement has been determined by the Board of AIB as being the most effective method of integrating the EBS business whilst retaining the core strengths of each individual entity which should return the greatest value to the State over time as shareholder. While this operational position exists it is likely that AIB and EBS will continue to offer different products to customers and as such, the banks can be expected, in the short to medium term, to price their mortgages and deposits differently from each other in the marketplace.

Ultimately the pricing of financial products, including variable mortgage interest rates, is a commercial decision for the respective management teams and boards of the banks having given due regard to its customers and the State as majority shareholder.

40. Deputy Michelle Mulherin asked the Minister for Finance the process involved in the National Asset Management Agency taking over loans on properties; and if he will make a statement on the matter. [38652/11]

Minister for Finance (Deputy Michael Noonan): I am informed by NAMA that the transfer of assets to it from the participating institutions is now close to completion and that loans with nominal balances of €74 billion have transferred to the Agency and that €32 billion has been paid by NAMA in respect of these loans. The provisions under which the National Asset Management Agency acquired loans are set out in the National Asset Management Agency Act, 2009. The acquisition process is governed by the provisions of Parts 4 to 7 of the Act in particular,

Part 4 provides for the designation of credit institutions as NAMA participants and the designation of bank assets as eligible for transfer;

Part 5 sets out the principles and policies for the valuation methodology;

Part 6 sets out the procedures under which the assets are transferred to NAMA;

Part 7 provides for the appeals processes of which participating institutions may avail

NAMA also provides a description of the loan acquisition process on its website at http://www.nama.ie/about-our-work/step-by-step/buying-a-loan/

41. Deputy Michelle Mulherin asked the Minister for Finance if both the banks and the National Asset Management Agency carry out separate valuations at enormous expense to the companies involved even in cases where these companies are repaying the loans; and if he will make a statement on the matter. [38653/11]

Minister for Finance (Deputy Michael Noonan): I assume the Deputy is referring to valuations of property which are an integral part of the due diligence process by which NAMA values loans being acquired from the participating institutions. I am informed by NAMA that the initial property valuation is commissioned and paid for by the institution. NAMA reviews this valuation and only in cases where it considers that the valuation is incorrect does it commission a ‘second opinion’ valuation from another valuer. I am informed that valuations are [975]referred for second opinion only in about one case out of every six valuations and that, in such cases, NAMA accepts the second valuation as binding.

I would also point out that the loan valuation methodology was approved by the European Commission on 26 February 2010.

42. Deputy Shane Ross asked the Minister for Finance if he will confirm that all amendments to methodologies and changes to formulas applied by the Central Bank of Ireland during the stress testing process were fully disclosed to and approved by the peer review team appointed by the European Banking Authoroity; and if he will make a statement on the matter. [38796/11]

43. Deputy Shane Ross asked the Minister for Finance if he will confirm that the only way in which the methodology applied by the Central Bank of Ireland to the Irish banks in the July 2011 stress tests differed to that prescribed to other European banks participating in the exercise was to take account of the losses forecast by BlackRock; and if he will make a statement on the matter. [38797/11]

44. Deputy Shane Ross asked the Minister for Finance if the BlackRock forecasts were the only criteria upon which amendments were made to methodologies applied in the stress tests of July 2011; if he will confirm in which other respects amendments were made; and if he will make a statement on the matter. [38798/11]

Minister for Finance (Deputy Michael Noonan): I propose to take Questions Nos. 42 to 44, inclusive, together.

In relation to the first question above (ref: 38796/11), the Deputy will note that this matter was addressed in my reply to his previous parliamentary question on the subject (ref: 35901/11 of 22 November 2011).

With reference to the remaining two questions (refs: 38797/11 & 38798/11), I am advised by the Central Bank of Ireland, that the European Banking Authority applied the following key differences in methodology to the Irish banks relative to their European peers that participated in the 2011 EU-wide bank solvency stress test:

Loan loss forecasts:

The BlackRock Solutions output were used for loan loss forecasts as opposed to the predefined methodology. This resulted in significantly higher estimated stress case losses for Irish banks relative to their European counterparts.

Deleveraging:

The estimated impact of losses resulting from asset disposal activities scheduled to occur within the stress testing horizon were taken into account. This resulted in significantly higher estimated losses for Irish banks relative to their European counterparts. Deleveraging also resulted in a reduction of future estimated Risk Weighted Assets, and consequently future estimated regulatory capital, over the time horizon of the test, which was not allowed for other participating banks.

Funding:

Irish, Greek and Portuguese banks were issued with separate cost of funds instructions to account for the impact of the sovereign spreads and external support programmes.

45. Deputy Michael Creed asked the Minister for Finance if he has attempted to quantify the lost revenue due to illegal tobacco smuggling; the inter-agency efforts under way to address same; if he is satisfied that the level of financial fines imposed on those convicted is a sufficient deterrent in view the profit margins involved; and if he will make a statement on the matter. [38837/11]

Minister for Finance (Deputy Michael Noonan): I am informed by the Revenue Commissioners, who are responsible for the collection of tobacco products tax, and for tackling the illicit trade in cigarettes and tobacco, that there is no internationally recognised method for precisely determining the amount of tax lost as a result of the illicit trade in cigarettes. However, a survey commissioned by Revenue and the Office of Tobacco Control in 2009 estimated that 20% of cigarettes consumed in the State had not been taxed in this jurisdiction. The 20% figure was further broken down as 14% illicit product and 6% legally imported by passengers arriving into the State from other jurisdictions. Revenue and the Office of Tobacco Control commissioned a similar survey in the last quarter of 2010 and the results of this latest survey show a consistency with the 2009 figures i.e. 20% of all cigarettes consumed in the State were not taxed in the State with 14% again classified as illegal product and 6% classified as legal non-Irish duty paid product. Based on an estimate of 14%, the loss to the exchequer from illicit cigarette consumption during 2010 would be in the region of €250m (excise duty + VAT). A further survey is currently underway. The Commissioners inform me that they regard the tackling of the illicit tobacco trade as a high priority area. They have established a high level internal group, chaired at Commissioner level, to examine the risks related to tobacco products tax and to oversee and optimise the detection of contraband and counterfeit tobacco products. This group has promoted a number of initiatives aimed at counteracting the illicit trade in tobacco. These include adoption of a comprehensive tobacco strategy and action plan.

The strategy employed by Revenue to tackle this illicit trade is multi-faceted. It includes ongoing analysis of the nature and extent of the problem, developing and sharing intelligence on a national, EU and international basis, ongoing review of operational policies, development of analytics and detection technologies, optimum deployment of resources at point of importation and inland, in order to intercept the contraband product and to prosecute those involved.

Interception at the point of importation is achieved through a combination of risk analysis, profiling, intelligence, and the screening of cargo, vehicles, baggage and postal packages. Revenue enforcement officers also target this illicit trade at the post-importation level by carrying out intelligence-based operations and random checks at retail outlets, markets and private and commercial premises. In July 2010, Revenue launched a series of nationwide tobacco ‘blitz’-type operations, which concentrated additional Revenue resources at ports, airports and at various inland retail points, including markets for the purpose of identifying illicit tobacco products. To date, Revenue has conducted eight such national tobacco ‘blitz’ operations resulting in the seizure of over 34m cigarettes and 1,383 kgs of tobacco. A ninth ‘blitz’ operation is just completed and the seizure figures are not yet available. Revenue also carries out regular multi-agency operations, particularly in relation to large maritime importations and in checks at inland markets. Revenue also works closely with the European Anti- Fraud Office, OLAF, in their efforts at tackling the illicit sale of tobacco at an international level. Revenue also provides, and receives, intelligence from other Customs Administrations. This international cooperation, and sharing of intelligence and expertise plays an important role in combating illegal tobacco smuggling on the global scale.

[977]With regard to the penalties available for prosecution of tobacco smuggling offences, the penalty on summary conviction for evasion of duty is

€5,000 and/or a term of imprisonment not exceeding 12 months. The penalty on indictment is up to €126,970 and/or a term of imprisonment not exceeding 5 years, or, where the value of the product concerned is greater than €250,000, up to three times the value of the products. The penalty of €126,970, which was sanctioned by the Oireachtas in the 2010 Finance Act, represents a significant increase on the previous monetary penalty of €12,695. These increased penalties are considered adequate.

In 2010, Revenue enforcement officers seized 178.3m cigarettes with a retail value of €75.3m and 3,342kgs of tobacco with a retail value of €1.2m. To date in 2011, a total of 97.07m cigarettes with a retail value of €40.9m and 11,213kgs of tobacco with a retail value of €4.02m have been seized.

In 2011 to date, Revenue has obtained 92 convictions relating to cigarette smuggling, with fines of €128,550 imposed and 29 custodial sentences, of which 19 were suspended. There were 47 convictions relating to the sale of unstamped tobacco products with fines of €96,350 imposed and 12 custodial sentences of which 7 were suspended.

The Deputy will appreciate that the precise penalty imposed on conviction in any individual case is solely a matter for the Courts and I do not propose to make any comment in that regard.

46. Deputy Thomas Pringle asked the Minister for Finance if he has concluded his discussions with the proposers of the offset debt method for addressing negative equity in family homes; when he commenced his exploration of this proposal; the number of meetings that have been held; the nature of these recent discussions; if there were any external consultations sought on the proposal; if he has reached a decision; if he will be proceeding with the proposal; when it will it be announced and if not, the basis for rejecting it; and if he will make a statement on the matter. [38885/11]

Minister for Finance (Deputy Michael Noonan): The Government is acutely aware of the increasing financial stress that some households are facing arising from the difficulty in meeting their mortgage commitments. It was for this reason that the Government took the significant step of establishing an Inter-Departmental Mortgage Arrears Working Group to consider further necessary actions. The Group’s report was published in October 2011. The contents of the Group’s report were discussed at length during the course of a Dail debate on the report. I intend to take account of the contributions of all Deputies in this debate as well as suggestions from a wide range of other stakeholders, interested groups and private individuals. As soon as all deliberations are considered, I will put proposals to Government on next steps, including an implementation mechanism to be driven by my Department.

47. Deputy Thomas Pringle asked the Minister for Finance his plans to end the process in which large multiple retailers are profiting from VAT refunds on the below cost sale of alcohol when they reclaim the difference between the invoice price VAT and the sale price VAT levied; and if he will make a statement on the matter. [38887/11]

Minister for Finance (Deputy Michael Noonan): VAT is a tax on the value added to a supply and the collection and recovery of VAT takes place at each stage of the chain of supply from manufacturing to retailer. Under EU and domestic VAT rules traders who are registered for [978]VAT collect VAT on the goods and services that they sell. In turn such traders are entitled to recover the VAT they incur on their business inputs used in the purchase or production of goods or delivery of services. Consequently, if there is a decrease in value at any stage in the process the trader is entitled to a refund of the excess of VAT incurred over that collected. In this regard, where a retailer is in a situation of net VAT gain as a result of below cost selling, this is not a loss to the Exchequer or an additional benefit to the retailer, it is merely how VAT is charged.

48. Deputy Aengus Ó Snodaigh asked the Minister for Finance the moneys to date paid to companies who under the Finance Act 2009 availed of tax relief for research and development here but who had not paid enough tax to avail of the full amount and who claimed the difference as a payment from the Exchequer. [38918/11]

Minister for Finance (Deputy Michael Noonan): The Finance (No. 2) Act 2008 included amendments to Sections 766 and 766A Taxes Consolidation Act (TCA) 1997 to provide for companies to claim the research and development tax credit as a payable credit where there is insufficient Corporation Tax in the year of claim and the preceding accounting period to absorb the full credit. This change applies to accounting periods commencing on or after 1st January 2009. The credit is paid in 3 instalments over 33 months from the end of the accounting period. Amounts paid out by Revenue in respect of claims made on 2009 corporation tax returns, which is the latest year for which figures are available, are as follows:

Section 766 TCA 1997 —€31.3m in respect of 362 claimant companies

Section 766A TCA 1997 —€1.2m in respect of 23 claimant companies

These amounts represent first instalment payments, which is a third of the amount ultimately payable. The balance, if not absorbed by corporation tax liabilities for 2010 and 2011, is payable within 24 months of the time for payment of the first instalment.

Statistics for 2010 payable credit claims will not be available until mid-2012.

49. Deputy Michael Healy-Rae asked the Minister for Finance if he will introduce a VAT refund for registered charitable non-profit organisations similar to the model operated by the Danish Government, which does not contravene European Union regulations; and if he will make a statement on the matter. [38986/11]

Minister for Finance (Deputy Michael Noonan): Charities and non-profit groups engaged in non-commercial activity are exempt from VAT under the EU VAT Directive, with which Irish VAT law must comply. This means they do not charge VAT on the services they provide and cannot recover VAT incurred on goods and services that they purchase. Essentially only VAT registered businesses which charge VAT are able to recover VAT. I appreciate the concerns of charities regarding the VAT issue and, as I indicated in the Seanad on 6 October 2011, I am prepared to have the matter examined by my officials in conjunction with the Revenue Commissioners and representatives of the charity sector. However, the examination of any options, including the Danish model referred to by the Deputy, must not only take into account the current demands on the Exchequer but also that charitable organisations are already in receipt of funding either directly or indirectly from the Exchequer, the existing tax relief scheme in respect of donations being just one example. Charities, voluntary and community groups, [979]and sporting bodies also benefit significantly from grant schemes administered by a number of Government Departments.

50. Deputy Michael Healy-Rae asked the Minister for Finance if he will review a matter (details supplied) regarding loans; his plans to deal with this issue; and if he will make a statement on the matter. [38987/11]

Minister for Finance (Deputy Michael Noonan): The decision on whether or not to grant a loan to a borrower must remain a commercial decision for the lending institution concerned. It is important that each lending institution is allowed to assess properly and independently the risks that it is considering when deciding whether or not to approve a loan. The Government acts at arm's length from the lending institutions and does not consider it appropriate to direct an institution on such a matter as the provision of loans for the purchase of motor cars either from a main dealer or from a garage proprietor.

51. Deputy Mattie McGrath asked the Minister for Education and Skills the annual cost to him of in-service training for primary teachers; the role the Teaching Council of Ireland plays in providing in-service training days; the annual budget for the Teaching Council of Ireland; the way the estimated €5.4 million paid to the Teaching Council of Ireland in teacher registration fees is being used; if the provision of in-service training days could be transferred from him to the Teaching Council of Ireland as a cost saving measure and provided for by the teacher registration fee; and if he will make a statement on the matter. [38308/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The Teaching Council Act 2001 (Section 39) enables the Teaching Council to review and accredit programmes relating to the continuing education of teachers. Planning for the commencement of the section is underway. The Teaching Council is self-funding. It raises its funds from, in the main part, teachers’ initial registration and renewal of registration fees. The annual registration fee is currently €90.

The Council’s current annual income is c.€6.6m. Its main costs are staff and administration, accommodation, registration, communication and education, and information technology. Each year the Council publishes an annual report on its activities which is laid before the House. The report also contains audited financial statements. The Council currently discharges a range of functions relating to initial teacher education and the setting of standards for the teaching profession. The annual cost (excluding salary) of continuing professional development for teachers is approximately €23.5m. Transfer of provision of this service to the Teaching Council would require a substantial increase in the annual registration fee payable by teachers if it were to be funded from within the Council’s resources. I have no plans at present to ask the Council to fund and provide this service.

52. Deputy Michelle Mulherin asked the Minister for Education and Skills if a school (details supplied) is being considered in the ongoing evaluation of DEIS by the Educational Research Centre; when the evaluation report is expected to be finalised and published; and if he will make a statement on the matter. [38313/11]

Minister for Education and Skills (Deputy Ruairí Quinn): There is a commitment under DEIS for ongoing evaluation of the programme to ensure successful implementation with the [980]best possible approaches to measuring progress and outcomes at both local and national level. The focus of the present report is solely on reporting pupil achievement outcomes in urban primary schools participating in the School Support Programme under DEIS. The School to which the Deputy refers was not selected to participate in DEIS and therefore, is not being considered in the ongoing evaluation of DEIS. The Evaluation report is currently being finalised and will be published in the coming weeks.

53. Deputy Jonathan O’Brien asked the Minister for Education and Skills his plans to cut second level teaching posts in County Cork over the next 12 months; and if he will provide details of same. [38324/11]

Minister for Education and Skills (Deputy Ruairí Quinn): While difficult choices had to be made to identify savings across my Department’s remit, the Government has gone as far as it could to protect front line services in 2012. The recent changes announced in the Budget were made within the context of bringing our overall public expenditure back into line with what we can afford as a country. The challenge is to ensure that the resources that are provided to schools are used by them to maximum effect in terms of providing an appropriate range of subjects to meet the needs of our knowledge economy and in delivering the best possible outcomes for all our pupils. My Department will be notifying schools of the impact of the budget changes in January, 2012.

54. Deputy Jonathan O’Brien asked the Minister for Education and Skills the average number of students per teacher in each primary and secondary school in County Cork; and if he will make a statement on the matter. [38325/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The Statistics Section of my Department’s website contains extensive information relating to the number of teaching posts in schools. The most recent information available relates to the 2010/2011 school year.

Statistical information in respect of the current school year is currently being compiled in my Department and is due for publication in September 2012.

55. Deputy Clare Daly asked the Minister for Education and Skills the reason €70 million was spent on the ABA pilot school, but no research was undertaken by him or the National Council for Special Education to evaluate the school’s effectiveness; the reason he cannot produce a list of the evidence and advice he received regarding the policy on the education of children with autism (details supplied). [38327/11]

Minister for Education and Skills (Deputy Ruairí Quinn): As the Deputy will be aware my Department’s policy on autism strives to ensure that a continuum of special education provision is available as required for children with special educational needs. In line with this approach the policy is to promote a child-centred approach to education of all children with special educational needs including those with autism. As each child with autism is unique they should have access to a range of different approaches to meet their individual needs.

Children with autism present with a wide range of needs. Some children are capable of being fully integrated into mainstream schools without additional teaching or care supports. Others [981]are able to attend mainstream schools but need additional teaching and/or care assistance. Many are best enrolled in autism-specific classes where more intensive and supportive interventions are required. Some may move from one setting to another as they get older and differing needs/strengths/abilities emerge.

The preferred policy of my Department is that children with autism are educated in school settings where children may have access to individualised education programmes (IEPs), fully-qualified professional teachers, special needs assistants, the appropriate school curriculum with the option, where possible and appropriate, of full or partial integration and interaction with other pupils. This approach promotes the maximum level of inclusion which accords with the intent of the EPSEN Act. While some children may be able to attend a mainstream class, for others the most appropriate provision may be in a special class or unit in the school or in a special school.

This policy is based on advice received from international experts on autism, NEPS, the Inspectorate and the report of the Irish Task Force on Autism. In arriving at the preferred policy which is currently in place, my Department has considered published research, including the Report of the Task Force on Autism (2001) and the Evaluation of Educational Provision for Children with Autistic Spectrum Disorders (2006), both of which are available on my Department’s website. My Department was also mindful of contributions of many others experts at international conferences/visits.

My Department supports some 450 special classes for autism attached to mainstream and special schools and 18 special schools for children with autism throughout the State which cater for the educational needs of some 5,000 children with autism.

The Deputy refers to the ABA pilot scheme which was funded by my Department for the past decade. The pilot scheme included 13 centres which were funded annually. In the last full year of the scheme, prior to the grant of recognition of the schools, the full cost of the scheme was approximately €11m which covered the costs of the 13 centres.

The pilot scheme was established in the absence of a network of school-based special classes for children with autism which is now available. The establishment of this network of autism-specific special classes in schools across the country to cater for children with autism has been a key educational priority in recent years. All 13 of the centres which participated in the pilot scheme have been granted recognition as special schools for children with autism. These schools will operate in line with my Department’s policy. Following their recognition the new schools are currently progressing well in the transitional phase.

My Department’s Inspectorate carried out an evaluation of all educational provision for children with autistic spectrum disorders some years ago. A copy of this report is available on my Department’s website ww.education.gov.ie. Part of this review evaluated the centres funded under the ABA pilot Scheme.

56. Deputy Pearse Doherty asked the Minister for Education and Skills further to Parliamentary Question No. 41 of 26 October 2011, the reason County Donegal Vocational Education Committee uses mapping services to calculate distances using back roads when there is clearly no bus route available to students; his views that this is justifiable and the legislation that outlines these measures. [38328/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The guidance given to local authorities and VECs in relation to the application of the distance criterion for student grants is that the shortest, most direct route to the institution attended is measured. The implementation [982]of this guidance is a matter for individual grant awarding authorities, which will be best positioned to interpret its application in the context of local circumstances.

Article 26 (3) (a) and (b) Student Grant Scheme 2011 (S.I. No. 305 of 2011) sets out the qualifying distance criterion for the non-adjacent rate of student grant and also empowers the grant awarding authority to determine the rate of grant applicable to individual eligible students in this regard.

57. Deputy Brendan Griffin asked the Minister for Education and Skills the grants and amounts paid by him to community and voluntary groups in Galway city and county to date in 2011; and if he will list the chairperson, secretary and treasurer of each group that were beneficiaries of same. [38337/11]

Minister for Education and Skills (Deputy Ruairí Quinn): My Department provides limited financial support to a small number of community and voluntary groups across the country. Details of funding provided by my Department to such groups in Galway under the Back to Education Initiative and through FÁS Local Training Initiatives are outlined in the following table. In addition to the grants indicated in the following table, block grant funding is provided by my Department to Vocational Educational Committees for the Adult Literacy and Community Education Scheme. It is a matter for each VEC to determine how this funding is allocated at local level.

Funding allocated to community groups in Galway by Department of Education and Skills, 2011

Funding stream	Group	Funding 2011	Chair	Secretary	Treasurer
FÁS Local Training Initiative	Bealoideas Chois Fharraige, Inverin	€87,780.35	Morgan O Conchubhair	Noirín Ní Lochlainn	Noirín Ní Lochlainn
FAS Local Training Initiative	Aras Sorcha Ní Ghuairim, Carna	€59,564.75	Seamus Concheanann	Nora Uí Shuilleabhán	Nora Uí Shuilleabhán
FAS Local Training Initiative	Galway Family History, Shantalla	€74,676.77	Coilín Hernon	Nuala Silke	Coilín Hernon
FAS Local Training Initiative	East Galway FHS Ltd, Woodford	€75,000.58	B Keary	J Mannion	L Canning
FAS Local Training Initiative	South East Galway IRD Ltd, Portumna	€67,746.49	Ml Fogarty	A Finnerty	L Smith
FAS Local Training Initiative	South Mayo Family Research, Ballinrobe	€81,256.10	John Carthy	Brigid Clesham	Ruaidhri De Barra
FAS Local Training Initiative	Lake District Enterprises, Ballinrobe	€77,983.02	Martin Murphy	Declan O’Loughline	Declan O’Loughline
FAS Local Training Initiative	Togail, Galway City	€74,559.00	Tommy Flaherty	Louise Andrews	Tommy Flaherty
FAS Local Training Initiative	Loughrea History Project, Loughrea	€80,607.18	Mary Nix	Odette Fahy	Ursula Marmion
Back to Education Initiative	Comhairle Muintir an Chaiseal Teoranta	€17,418	Bridget McTavish	Sue Eldrid	Sue Eldrid
Back to Education Initiative	Brothers of Charity, Blue Teapot	€22,032	Michael Reen	Ann Geraghty	Ann Geraghty

58. Deputy Alan Farrell asked the Minister for Education and Skills the increments made payable to public sector workers within his Department in the years 2010 and 2011; the increments due in 2012 in tabular form; and if he will make a statement on the matter. [38357/11]

Minister for Education and Skills (Deputy Ruairí Quinn): Due to the number of employees and payroll systems across the education sector, providing detailed figures for the cost of increments in each specific year would involve a disproportionate administrative burden and would take very significant time to calculate. However, it is estimated that the value of increments in the education sector is approximately €82.5 million in a full year.

59. Deputy Michelle Mulherin asked the Minister for Education and Skills the position regarding permission to utilise football grounds at a college in Ballina, County Mayo in respect of a club (details supplied); and if he will make a statement on the matter. [38367/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I understand that Mayo VEC has drafted a licence agreement to facilitate the proposal referred to by the Deputy and has forwarded it to the club involved.

60. Deputy Anne Ferris asked the Minister for Education and Skills the position regarding a school (details supplied) in County Wicklow; if he has identified any other available sites in County Wicklow that might be considered; and if he will make a statement on the matter. [38392/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I wish to advise the Deputy that officials from my Department have been in discussions with Co. Wicklow VEC regarding a permanent site for the school to which she refers. However, given the sensitivities associated with land acquisitions generally, I am not in a position to comment further at this time. The acquisition of a site and the delivery of the school building project will be considered in the context of the capital budget available to my Department for school buildings generally.

61. Deputy Patrick O’Donovan asked the Minister for Education and Skills if all student grant applications received by Mayo Vocational Education Committee for the 2011-12 academic year will be processed by Christmas; and if he will make a statement on the matter. [38434/11]

62. Deputy Patrick O’Donovan asked the Minister for Education and Skills the number of student grant applications received by Mayo Vocational Education Committee for the current [984]academic year that have been fully processed to date; the numbers approved and the numbers refused a student grant; and if he will make a statement on the matter. [38435/11]

63. Deputy Patrick O’Donovan asked the Minister for Education and Skills the number of applications received this year for the student grant by Mayo Vocational Education Committee; the comparative figures for the number of applications received in the 2010-11 academic year; and if he will make a statement on the matter. [38436/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I propose to take Questions Nos. 61 to 63, inclusive, together.

Co. Mayo VEC has provided the statistical information sought by Deputy and this is contained in the following table.

The administration of the student grant application process is matter for the management of each grant awarding authority — in this case the Chief Executive Officer of the VEC. I am aware that the timing for processing student grants varies across the 66 grant awarding bodies depending on a number of factors including the volume of applications received, staffing resources and whether or not properly completed application forms have been submitted. Work prioritisation across different functions and how available staff are deployed to execute those functions by the management of the grant awarding authority also have a bearing as to when the process is completed in any given year. However, my Department constantly monitors the situation.

The Deputy will be pleased to know that plans are well underway to replace the 66 grant awarding bodies with one single authority and I have approved the appointment of the CDVEC to operate this centralised body.

The single authority will be operative from 2012 and I believe it will lead to a more efficient system for the processing of applications and improve the overall customer experience for those who apply for grants. I am sure the Deputy will agree this much needed overhaul of the grants system is a positive example of public sector reform.

New Applications	2010/11 As at 25/11/10	2011/12 As at 25/11/11
Number Received	1,538	1,553
Number Awarded Grant	581	573
Number Refused Grant	18	42
No. Awaiting Further Information	0	149
No. Yet to be processed	908	709
No. Cancelled/Withdrawn	31	43
No. Transferred to other Authority	0	37
Total	1,538	1,553

Renewals	Received and processed in full year
Number Received	1,167	1,231
Number Awarded	1,167	1,226

64. Deputy Michael McGrath asked the Minister for Education and Skills the estimated cost [985]to his Department of a 2% increase in the standard rate of VAT; and if he will make a statement on the matter. [38461/11]

Minister for Education and Skills (Deputy Ruairí Quinn): Based on an analysis of payments made by my Department to date in 2011 that were liable for VAT at the rate of 21%, it is estimated that the cost of a 2% increase in VAT in 2012 would be of the order of €64,000. This is based on the assumption of an equivalent level of expenditure in 2012 as in 2011. This estimate does not include expenditure made by schools and other bodies in the education sector that receive grant funding from my Department. The information sought is not readily available in respect of these bodies.

65. Deputy Ann Phelan asked the Minister for Education and Skills the action he has taken to progress a new capital project replacement for an expanding school (details supplied) in County Kilkenny; if he is satisfied from the ensuing Department evaluation that this project falls in line with good forward planning practice; and if he will make a statement on the matter. [38530/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The school authority referred to by the Deputy has applied to my Department for major capital funding for a new school. The current status of all projects on the school building programme, including this school, may be viewed on my Department’s website at www.education.ie and this will be updated regularly throughout the year.

The Government’s Medium Term Infrastructure and Capital Investment Framework, which was published on 10th November 2011, sets out the demographic challenge facing the education system in the coming years. The priority now is to focus on major school projects and smaller projects devolved to schools to meet the demographic demands. The primary aim will be to ensure that every child will have access to a school place.

The Deputy will be aware that since 2009, my Department has invested in excess of €811,000 in the school in question towards the provision of accommodation and various capital works. It is expected that the existing accommodation will meet the needs of the school for the foreseeable future.

66. Deputy Bernard J. Durkan asked the Minister for Education and Skills if a laptop will be provided in the case a person (details supplied) in County Kildare; and if he will make a statement on the matter. [38545/11]

Minister for Education and Skills (Deputy Ruairí Quinn): As the Deputy will be aware, the National Council for Special Education (NCSE) is responsible, through its network of local Special Educational Needs Organisers (SENOs) for allocating resource teachers and Special Needs Assistants to schools to support children with special educational needs. SENOs also make recommendations to my Department where assistive technology is required. The NCSE operates within my Department’s criteria in allocating such support. To date the NCSE have not forwarded a completed application to my Department recommending assistive technology equipment for this child.

All schools have the names and contact details of their local SENO. Parents may also contact their local SENO directly to discuss their child’s special educational needs, using the contact details available on www.ncse.ie.

67. Deputy Michael McCarthy asked the Minister for Education and Skills if he will outline the qualification details for the DEIS programme in view of the fact that some schools are unsure of the way to qualify; and if he will make a statement on the matter. [38554/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The Deputy will be aware of the Comprehensive Expenditure Review that was undertaken in all government Departments at the request of the Minister of Public Service Expenditure and Reform. While a key priority for me is to continue to prioritise and target resources at schools with the most concentrated levels of educational disadvantage, the current economic climate and the challenge to meet significant targets on reducing public expenditure limits opportunities to provide for additionality under DEIS, including the selection of further schools.

68. Deputy Joanna Tuffy asked the Minister for Education and Skills further to Parliamentary Question No. 84 of 24 November 2011, if he will confirm that this reply refers to a school (details supplied) in County Dublin; and if he will make a statement on the matter. [38601/11]

Minister for Education and Skills (Deputy Ruairí Quinn): In preparing the answer referred to by the Deputy (Question No. 84 of 24 November 2011) my officials contacted the Deputy’s office to seek clarification as there are two schools with the same name in that area of County Dublin. The answer provided on 24 November referred to the girls national school as identified by the Deputy’s office. The details provided in respect of this school are correct.

The other school which is a mixed gender school is currently at tender stage.

69. Deputy Willie Penrose asked the Minister for Education and Skills if he will indicate the current stages of an application for a new primary school (details supplied) in County Longford; when it is likely to be approved to go to construction; and if he will make a statement on the matter. [38605/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The current status of all projects on the school building programme, including the school referred to by the Deputy, may be viewed on my Department’s website at www.education.ie and this will be updated regularly throughout the year.

The Government’s Medium Term Infrastructure and Capital Investment Framework, which was published on 10 November 2011, sets out the demographic challenge facing the education system in the coming years. The priority now is to focus on major school projects and smaller projects devolved to schools to meet the demographic demands. The primary aim will be to ensure that every child will have access to a school place.

I have previously committed to publishing a five year plan early in the new year outlining the school building projects to be constructed in that time.

70. Deputy Willie Penrose asked the Minister for Education and Skills if he will indicate the current stages of an application for a new primary school (details supplied) in County Westmeath; when it is likely to be approved to go to construction; and if he will make a statement on the matter. [38606/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The provision of a new building for the school to which the Deputy refers necessitates the acquisition of a site. I wish to advise [987]the Deputy that a suitable site has been identified for the proposed school and my Department is working with the local authority to acquire this site.

When the site is acquired, a project for the school will be considered within the context of my Department’s Multi-annual School Building and Modernisation Programme. In light of current competing demands on the capital budget of my Department and the demographic challenge facing the education system in the coming years, it is not possible to give an indicative timeframe for the progression of the project at this time.

71. Deputy Willie Penrose asked the Minister for Education and Skills if he will outline the current status of an application for a new primary school (details supplied); if same will be included as part of the capital allocation for 2012; and if he will make a statement on the matter. [38607/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The major building project at the school referred to by the Deputy was included in the Work Programme for 2011 announced last January. The Design Team are currently working on finalising the Stage 2(b) Submission (Detailed Design) which will then be submitted to my Department for review. Upon completion of Stage 2(b) the Design Team will submit the required documentation to the Department. Subsequently officials from my Department will be in contact with the Board of Management with regard to the further progression of the project.

I recently announced that I will be publishing a detailed plan on an annual basis in relation to planned expenditure on individual school major projects. The first of these in relation to 2012 expenditure will be published in December 2011. All school building projects currently in architectural planning will be considered in the context of these programmes, taking into account the funding available, the building costs involved and the progression of other major projects required to meet demographic needs.

72. Deputy John Deasy asked the Minister for Education and Skills when the minor repairs grant will be paid to a school (details supplied) in County Waterford. [38633/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I am pleased to inform the Deputy that all 3248 eligible primary and special schools received the Minor Works Grant for 2011/2012 at the end of November with a total grant of over €28m paid out. I can confirm that the school to which the Deputy refers is an eligible school and has been paid the grant.

73. Deputy John Deasy asked the Minister for Education and Skills if he will provide details of the grants that are available for primary schools. [38634/11]

Minister for Education and Skills (Deputy Ruairí Quinn): My Department provides funding to primary schools by way of per capita grants, which affords schools considerable flexibility in the use of these resources to cater for the needs of their pupils. A calendar of when these grants are issued to primary schools is available on the website of my Department at http://www.education.ie/servlet/blobservlet/pri_grant_calendar_2011.pdf.

74. Deputy Finian McGrath asked the Minister for Education and Skills if he will respond [988]to correspondence (details supplied) regarding the internationalisation of Irish higher education. [38650/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The correspondence to which the Deputy refers raises concerns regarding the specific approach to internationalisation taken by a number of named higher education institutions, and with the international education strategy itself. Both the national strategy and the internationalisation policies of the institutions concerned have my support and confidence. No evidence is presented in the correspondence which would cause me to change that position. If the correspondent wishes to write to the international section of my Department setting out precisely what is the basis of his concern, and what his suggestions are for “a more effective course of action”, I will ensure that appropriate consideration is given to his views.

75. Deputy Sandra McLellan asked the Minister for Education and Skills the pupil-teacher ratio for schools (details supplied) for the years 2009, 2010 and 2011; his plans to reduce the ratio in 2012; and if he will make a statement on the matter. [38710/11]

77. Deputy Sandra McLellan asked the Minister for Education and Skills the number of language support teachers employed at schools (details supplied) for the years 2009, 2010 and 2011; his plans to ensure that adequate language and special needs supports are in place in each of these schools in 2012; and if he will make a statement on the matter. [38712/11]

78. Deputy Sandra McLellan asked the Minister for Education and Skills the average class size in schools (details supplied) for the years 2009, 2010 and 2011; his plans to reduce this figure in 2012; and if he will make a statement on the matter. [38713/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I propose to take Questions Nos. 75, 77 and 78 together.

The Statistics Section of my Department’s website contains information relating to class size in primary schools. The information includes the number of pupils in each class, the number of pupils in each class size range and the number of teachers in each school. As you will be aware from the budget announcements yesterday, there is no increase in the general average of 28:1 for the allocation of classroom teachers at primary level. However, the staffing arrangements in schools for the 2012/13 school year can also be affected by changes in their enrolment, the impact of other budget measures and the reforms to the teacher allocation process. The reform of the allocation process is designed to bring a more equitable distribution of existing posts between schools so there will inevitably be some schools that will lose posts and some schools that will gain posts. My Department will be notifying schools in January of the new staffing arrangements for 2012/13 school year.

76. Deputy Sandra McLellan asked the Minister for Education and Skills if he will provide the funding allocation and pupil numbers for schools (details supplied) for each of the years 2009, 2010 and 2011; the funding that will be made available in 2012; and if he will make a statement on the matter. [38711/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The school to which the Deputy refers is a recognised national school and attracts funding from my Department in the same way as all other recognised national schools.

[989]All recognised national schools running costs are met by my Departments scheme of capitation and ancillary grants. Schools will receive capitation funding in January and June, and the ancillary services grant in March.

In addition, Gaelscoil Mhainistir Na Corann is a gaelscoil and as such attracts enhanced capitation.

Since 2010 schools also receive funding towards the costs of School Books.

School	Year	Funding	Enrolment
Cloyne B National School	2011	€72,036	207
Cloyne B National School	2010	€70,638	193
Cloyne B National School	2009	€68,382	189
Bun Scoil Muire	2011	€170,520	490
Bun Scoil Muire	2010	€184,266	506
Bun Scoil Muire	2009	€146,520	507
Gaelscoil Mhainistir Na Corann	2011	€134,707	362
Gaelscoil Mhainistir Na Corann	2010	€131,116	335
Gaelscoil Mhainistir Na Corann	2009	€116,535	304

Questions Nos. 77 and 78 answered with Question No. 75.

79. Deputy Sandra McLellan asked the Minister for Education and Skills his views on the current accommodation at a school (details supplied) in County Cork; his further views that the facilities at this school are appropriate and adequate; if this school will be included in the school building programme for 2012; the date on which that programme will be published; and if he will make a statement on the matter. [38714/11]

82. Deputy Sandra McLellan asked the Minister for Education and Skills the funding streams which are available to a school (details supplied) in County Cork to carry out renovation and repair works to its premises; and if he will make a statement on the matter. [38717/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I propose to take Questions Nos. 79 and 82 together.

As the Deputy may be aware, my Department is in the process of acquiring a site for the school, in question, for the purpose of constructing permanent accommodation. In the meantime, grant aid is provided by my Department to the school authorities concerned for the rental of temporary accommodation to meet the school's interim accommodation requirements. In addition, as well as the standard capitation grant, the school also qualifies for the minor capital works grant, which issued to the school recently, towards the cost of any renovation and repair works. I have previously committed to publishing details this month of the school building projects to be constructed in 2012 and early in the new year, I will publish a five year plan outlining the projects to be constructed in that time.

80. Deputy Sandra McLellan asked the Minister for Education and Skills if children with special needs and those whose first language is not English are exempt from standardised numeracy and literacy tests, the way educators are supposed to fulfil the criteria to get the children assessed; and if he will make a statement on the matter. [38715/11]

[990]Minister for Education and Skills (Deputy Ruairí Quinn): The circulars issued to schools on standardised testing provide that students may be excluded from standardised testing if in the view of the school principal they have a learning or physical disability which would prevent them from attempting the tests or, in the case of migrant students, where the level of English required in the test would make attempting the test inappropriate. The exclusion provision is so that students are not exposed to negative experiences which would reinforce failure and low self-esteem for those who are clearly unable to take the test. It should be noted that while very low performance in a standardised English reading or mathematics test may signal a need for further exploration, the tests are not designed to diagnose disability. Where pupils are excluded from standardised testing, it is a matter for the school to arrange an appropriate alternative form of assessment, to provide supporting feedback to the pupils and to report to their parents on their achievement and progress. The exemption from national standardised testing does not and should not preclude the application by teachers of a range of tests, processes and practices used to assist in identifying whether special education needs exist in respect of a given pupil, in consultation with the learning support teacher and the school’s assigned psychologist.

81. Deputy Sandra McLellan asked the Minister for Education and Skills the research and evidence which supports the approach taken to literacy and numeracy education at primary school level; his views that the evidence from the USA and UK that standardised testing has resulted in poorer performance compared with the continuous assessment model as employed in Finland, for example, is significant; and if he will make a statement on the matter. [38716/11]

Minister for Education and Skills (Deputy Ruairí Quinn): One of the key goals contained in the Programme for Government is to raise educational standards in literacy and numeracy at both primary and post primary education. That is why I have prioritised the publication and implementation of the National Literacy and Numeracy Strategy 2011-2020 since becoming Minister for Education & Skills. Despite increased investment in education in recent years, Ireland’s performance in mathematical and reading literacy declined in the 2009 PISA study. The National Literacy and Numeracy Strategy 2011-2020 is underpinned by extensive consultations and engagement with a wide range of stakeholders, and the submissions include bibliographies and summaries of research which are published on my Department’ website. In addition, the Educational Research Centre has published a detailed study of Standardised Testing in Lower Secondary Education commissioned by the NCCA, and this report clearly highlights both the benefits of standardised testing and the negative consequences which can arise if the results are used in a high stakes context. The Literacy and Numeracy Strategy sets out a comprehensive range of actions designed to strengthen literacy and numeracy in our schools. These include curriculum reform, extensive professional development for teachers, extending the duration of initial teacher education, improved school leadership and self evaluation, and actions with parents to support their children’s learning. Standardised testing has been widely used in schools for a considerable number of years as one of a range of assessment approaches to support teaching and learning. Such testing has key benefits in identifying early children who may need additional support, providing summative information on students’ progress vis a vis national trends, benchmarking the other assessment approaches used by the class teacher, guiding students’ learning, and assisting school planning and evaluation. The Literacy and Numeracy Strategy provides for a further strengthening of this process and for reporting of results to parents, but gives a clear commitment that data will not be used for the compilation of league tables. The measures are designed to ensure a balanced approach to measuring and enhancing students’ progress in this critical area.

[991]Question No. 82 answered with Question No. 79.

83. Deputy Sandra McLellan asked the Minister for Education and Skills his position with regards to the review process of special needs assistants’ allocated hours whereby the opinion of an educational psychologist can be overruled by a special education needs organiser; and if he will make a statement on the matter. [38718/11]

85. Deputy Sandra McLellan asked the Minister for Education and Skills if he will review the case of a person (details supplied) in County Cork; and if he will allocate a full-time equivalent special needs assistant based on the recommendations of their educational psychologist. [38720/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I propose to take Questions Nos. 83 and 85 together.

The Deputy will be aware that the National Council for Special Education (NCSE) is responsible, through its network of local Special Educational Needs Organisers (SENOs) for allocating resource teachers and Special Needs Assistants (SNAs) to schools to support children with special educational needs. The Deputy should note that SENOs are professionals who hold relevant qualifications and have considerable practical expertise in the assessment of children with special educational needs and have first hand experience of what supports a child and his or her school requires.

The NCSE operates within my Department’s criteria in allocating such support. This now includes a requirement for the NCSE to have regard to an overall cap on the number of SNA posts. This number is 10,575 whole time equivalent (WTE) posts. I wish to clarify that the EPSEN and Disability Acts set out clearly the role and functions of the NCSE and the HSE and their staff in carrying out assessments and with regard to the provision of services for children with special educational needs. Responsibility for deciding on the quantum of educational supports and resources to be allocated to schools, or to individual pupils, rests with the NCSE in accordance with DES policy.

Whereas health reports provide valuable assistance to education providers in identifying a diagnosis or identifying appropriate interventions, health staff are asked not to include references to the specific quantum of educational resources in their reports, but should state the outcome of tests carried out and the range of needs of the child as clearly as possible. The NCSE has now advised all mainstream schools, including the school referred to by the Deputy, of their SNA allocation for the current school year, taking into account the care needs of qualifying pupils attending the school. The school in question has been allocated 2.83 SNA posts and 72.9 Resource Teacher hours for the current school year. SNAs should be deployed by the school in a manner which best meets the care support requirements of the children enrolled in the school for whom SNA support has been allocated. It is a matter for schools to allocate support as required, and on the basis of individual need, which allows schools flexibility in how the SNA support is utilised. The NCSE has retained a number of SNA posts in order to allocate them over the remainder of the school year in respect of emergency cases, new diagnosis, or appeals by schools. Should a school seek to have their SNA provision reviewed or make a new application, they should contact the NCSE in this regard. It is expected that schools, before requesting any review of their SNA provision, will be in a position to demonstrate that they have made every effort to manage their allocation of SNA posts to best effect.

84. Deputy Sandra McLellan asked the Minister for Education and Skills if a suitable site has been identified for new accommodation in respect of a school (details supplied) in County Cork; when building work will begin there; the date on which the new accommodation will be ready to move into; and if he will make a statement on the matter. [38719/11]

Minister for Education and Skills (Deputy Ruairí Quinn): As the Deputy will be aware, the area in Co. Cork in which the school to which she refers is located, has been identified as one of the areas projected to experience a significant increase in demand for school accommodation in the coming years and the requirements of the school in question are being considered in this context. My Department is in the process of acquiring, subject to planning, a site in the area which is suitable for the construction of a new school building. Planning permission was received for a school building on the site but has been appealed to An Bord Pleanála and the appeal’s outcome is awaited. If planning permission is secured, the acquisition of the site and the delivery of a school building project will then be considered in the context of the capital budget available to my Department for school buildings generally.

Question No. 85 answered with Question No. 83.

86. Deputy Sandra McLellan asked the Minister for Education and Skills if he will detail the staffing levels at schools (details supplied) for the years 2009, 2010 and 2011; the number of staff who took maternity leave during that period; the number of maternity leave posts which became available during that period; the number of maternity leave posts that were filled in that period; and if he will make a statement on the matter. [38721/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The Statistics section of my Department’s website contains data at individual primary school level in county order for the 2010/2011 school year. The information includes the number of mainstream class teachers and pupils in each primary school. The details for the current school year (2011/2012) are currently being compiled by my Department and will be published in September 2012. Unlike most other areas of the public service teaching vacancies, including those arising due to maternity leave absences, continue to be filled in the normal manner. My Department does not maintain statistical data on the absences referred to by the Deputy. My Department’s focus is on implementing the budget measures announced yesterday and I do not propose to divert scarce staffing resources to deal with the individual type queries from the Deputy.

87. Deputy Sandra McLellan asked the Minister for Education and Skills the measures he has taken to increase the efficiency and minimise duplication of function of the agencies operating under his aegis since coming into office; and if he will make a statement on the matter. [38722/11]

Minister for Education and Skills (Deputy Ruairí Quinn): With regard to agencies under the aegis of my Department the Deputy should note that:

Since September 2011, the National Centre for Technology in Education (NCTE) is within the remit of Dublin West Education Centre alongside the Department’s largest support service, the Professional Development Service for Teachers (PDST). The process of integrating the functions of the NCTE with the support services and with the National Council for Curriculum and Assessment (NCCA) is underway. The new con[993]figuration will ensure greater integration of ICT within teaching and learning both in terms of policy and practice and will deliver synergies in this regard.

Since June 2011, the functions of the National Educational Welfare Board transferred to the newly established office of the Minister for Children and Youth Affairs. As the Deputy is aware my colleague the Minister for Public Expenditure and Reform is leading the development of a new integrated public service reform plan, details of which were announced on 17th November. With regard to bodies under the aegis my Department the following tasks have been identified for rationalisation:

The establishment of the Qualifications and Quality Assurance Authority of Ireland (QQAAI) which involves merger of the National Qualifications Authority of Ireland (NQAI), the Further Education and Training Awards Council (FETAC) and the Higher Education and Training Awards Council (HETAC). The establishment of QQAAI will result in savings to the Exchequer. It should be noted that NQAI, HETAC and FETAC have already delivered very significant savings since the announcement of the amalgamation in October 2008 through implementation of the moratorium and through expenditure reduction across their range of activities. The bodies’ exchequer allocation for current expenditure in 2011 (€8.823m) is approximately 30% lower than outturn in 2008. Further savings to the Exchequer of €1 million per annum will be achieved over time through further staff reductions in accordance with the Employment Control Framework, through rationalised corporate structures and supports and through integration of services.

The replacement of the 33 Vocational Education Committees (VECs) with 16 Education and Training Boards (ETBs). The ETBs will take over the work of VECs and will have an expanded role in the delivery of further education and training across the country. It is estimated that this rationalisation project will yield a saving of €3m over time.

The merger of the Irish Research Council for Science, Engineering and Technology & the Irish Research Council for the Humanities and Social Science into a consolidated single Council under the Higher Education Authority.

The Deputy will also be aware that a number of other major structural reform projects are being progressed in the Education sector. These are: The establishment of SOLAS, the new agency to reform, co-ordinate and fund further education and training programmes including developing a seamless interaction with the National Employment and Entitlement Service (NEES) on activation measures. A Single awarding authority for student grants — The City of Dublin VEC will operate as the new single student grant awarding authority to replace the existing 66 grant awarding bodies. Implementation of the new arrangements are being phased in from the 2012/13 academic year. The consolidation of Higher Education provision will take place under the Strategy for Higher Education to 2030.

It is also proposed to dissolve the Education Finance Board on the establishment of the Residential Institutions Statutory Fund. I intend to publish the necessary legislation at the earliest opportunity.

88. Deputy Emmet Stagg asked the Minister for Education and Skills the reason a request was not responded to in respect of a person (details supplied) in County Kildare. [38805/11]

Minister for Education and Skills (Deputy Ruairí Quinn): My Department has requested additional information from the teacher referred to by the Deputy. Staff of the Primary Payroll Division will deal with the request as soon as the information is received.

[994]

89. Deputy Emmet Stagg asked the Minister for Education and Skills in view of circular 007/2010, which classified that all staff employed by a recognised school on the vocational education committee come within the definition of public servant, regardless of the source of the money used to fund their salary, and further to circular 0040/2011, which outlines new pay rates for all teachers appointed after 1 January 2011, if he will accept that in natural justice teachers who worked as substitute teachers in 2010 and who were paid by the school board of management should not be regarded as new appointees under circular 0040/2011 and in the specific case of a person (details supplied) in County Kildare, if he will clarify that they are not a new appointee under circular 0040/2011. [38806/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The person referred to by the Deputy is regarded as a new appointee to teaching under the terms of Circular 0040/2011. The terms of that Circular apply only to personnel who are paid on payrolls operated by my Department or by Vocational education Committees and not to personnel employed and paid by an individual school managerial authority. The specific category of employees referred to in Circular 007/2010 are also paid on payrolls operated by my Department or by Vocational Education Committees. Circular 007/2010 does not classify that all staff employed by a recognised school come within the definition of public servant.

90. Deputy Pat Deering asked the Minister for Education and Skills his capital budget for the next five years for County Carlow schools and County Kilkenny schools separately. [38819/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The Government’s Medium Term Infrastructure and Capital Investment Framework published on the 10th of November includes an allocation for education capital of just over €2.2bn over the five years of the plan — an average annual allocation of just over €440m.

Total enrolment in both primary and post-primary schools is expected to grow by almost 70,000 between now and 2018 (over 45,000 at primary level and 25,000 at post primary) and will continue to grow up to at least 2024 at post-primary level. The priority now is to focus on major school projects and smaller projects devolved to schools to meet the demographic demands. The primary aim will be to ensure that every child will have access to a school place.

It is within this context that earlier this year I announced that up to 40 new schools are to be established nationally within the next six years, comprising of twenty new primary schools and twenty new post-primary schools. The current status of all projects on the school building programme including the projects for the areas referred to by the Deputy may be viewed on my Department’s website at www.education.ie and this will be updated regularly throughout the year.

I have previously committed to publishing details of the 2012 school building programme this month. Early in the new year, I will publish a five year plan outlining the projects to be constructed in that time.

91. Deputy Catherine Murphy asked the Minister for Education and Skills if primary school classrooms designed and delivered in recent times will be large enough to accommodate larger class sizes; the design standard that is currently being used; and if he will make a statement on the matter. [38908/11]

[995]Minister for Education and Skills (Deputy Ruairí Quinn): In the provision of major extensions/new school buildings it is the current practice of my Department to use a guideline of 80sq. metres as a standard size of a general primary school classroom. This space allows for the inclusion of two en suite toilets and in-room storage.

80 sq. metres is considered to be the optimum size of classroom in a new primary school. This size was determined by studies carried out by my Department in line with international best practice and is sufficiently large to comfortably cater for schools’ needs.

92. Deputy Robert Troy asked the Minister for Education and Skills the position regarding schools (details supplied) in County Westmeath. [38913/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The following is the position relating to the schools listed by the Deputy:

School No: 1 - I can confirm that the school has presented a proposal to my Department to relocate to alternative accommodation. The proposal is currently being considered and a decision will be conveyed to the school authority in due course.

School No: 2 - The current status of all projects on the school building programme, including the school referred to by the Deputy, may be viewed on my Department’s website at www.education.ie and this will be updated regularly on an ongoing basis.

School No: 3 - A major building project at this school was included in the Work Programme for 2011 announced last January. The Design Team are currently working on finalising the Stage 2(b) Submission (Detailed Design) which will then be submitted to my Department for review. Upon completion of Stage 2(b), the Design Team will submit the required documentation to the Department. As the Deputy may be aware, the Government’s Medium Term Infrastructure and Capital Investment Framework, which was published on 10th November 2011, sets out the demographic challenge facing the education system in the coming years. The priority now is to focus on major school projects and smaller projects devolved to schools to meet the demographic demands. The primary aim will be to ensure that every child will have access to a school place.

I recently announced that a school building construction programme for 2012 will be published this month and that a 5 year construction programme will be announced early in 2012.

93. Deputy Robert Troy asked the Minister for Education and Skills the position regarding a school (details supplied) in County Longford. [38914/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The building project for the school referred to by the Deputy was included in the School Building Work Programme announced on 24th January 2011. It was one of a number of schools announced to secure planning permission with a view to preparing tender documents.

The Design Team are currently working on Stage 2(b) of Architectural Planning which includes the preparation of tender documents. All statutory approvals (Planning Permission, Fire Certificate and Disability Access Certificate) have been granted. Upon completion of Stage 2(b) the Design Team will submit the required documentation to the Department. Subsequently my Department will be in contact with the Board of Management with regard to the further progression of the project.

94. Deputy Charles Flanagan asked the Minister for Education and Skills the number of two-teacher schools in County Laois; the number of pupils currently attending therein; and if he will make a statement on the matter. [38967/11]

95. Deputy Charles Flanagan asked the Minister for Education and Skills the number of two-teacher schools in County Offaly; the number of pupils currently attending therein; and if he will make a statement on the matter. [38968/11]

Minister for Education and Skills (Deputy Ruairí Quinn): I propose to take Questions Nos. 94 and 95 together.

The Statistics Section of my Department’s website contains extensive data in relation to primary schools. The most recent information available relates to the 2010/2011 school year.

Statistical information in respect of the current school year is currently being compiled in my Department and is due for publication in September 2012.

96. Deputy Brendan Smith asked the Minister for Education and Skills if he will give detailed consideration to the issues raised in correspondence (details supplied); and if he will make a statement on the matter. [38997/11]

My Department will be notifying schools of the impact of the budget changes in January, 2012.

97. Deputy Bernard J. Durkan asked the Minister for Education and Skills if in view of the criterion laid down by the relevant section of his Department relating to the provision of secondary schools in general and particularly the proposal to build two post-primary schools at Maynooth, County Kildare, if it is intended to have regard for parental or local choice; if the junior senior cycle proposal on campus as favoured by the existing parent teacher association is likely to be considered, favoured or rejected; if the said criterion excludes any particular or specific structure or structures, management or otherwise, in respect of the proposed schools; if it is intended that the schools fall under existing or alternative patronage; if the patronage representation at schools in the surrounding area is likely to be a consideration in such issues; and if he will make a statement on the matter. [39004/11]

Minister for Education and Skills (Deputy Ruairí Quinn): A replacement school building for the existing VEC post-primary school in Maynooth has been approved.

Earlier this year I also published details of new procedures and criteria for the establishment of new second level schools and of the process for determining the patronage of such new schools. I also announced details of 20 new second level schools that would need to be estab[997]lished between 2012 and 2017 to meet our increasing demographics. As the Deputy will be aware, Maynooth is one of the areas where a new 1,000 pupil second level school is to be established. Applications for patronage of any of the new second level schools, including the new school in Maynooth, would need to relate to the provision of a full curriculum through from first year to sixth year. This is one of the key requirements of the process. In the case of the Maynooth school the main medium of instruction will be English. The closing date for receipt of applications for patronage of the new second level schools is Friday, 24th February 2012. My Department will prepare a report on these applications for the consideration of the New Schools Establishment Group who will submit a report to me for final consideration and decision.

Details of the new arrangements for patronage of new schools and the criteria for deciding on patronage of these new schools is available on my Department’s website, www.education.ie.

Both new school buildings will be located on one campus and responsibility for the delivery of the buildings has been devolved to County Kildare Vocational Education Committee. I understand the VEC is in the process of appointing a Design Team.

98. Deputy Terence Flanagan asked the Minister for Education and Skills the position regarding the implementation of recommendations at a school (details supplied) in Dublin 13; and if he will make a statement on the matter. [39007/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The Deputy will be aware that the National Council for Special Education (NCSE) is responsible for the provision of a range of educational services at local and national level for students with special educational needs. In particular, its network of Special Education Needs Organisers (SENOs) co-ordinates special needs education provision at local level and arranges for the delivery of special educational services. The SENOs act as single points of contact for parents of students with special educational needs. Another specific function of the SENO is to identify appropriate educational placements for children with special educational needs. SENOs are a valuable source of support to parents who are actively sourcing a placement for their children. The NCSE has been fully engaged in securing placement options for the child in question.

The purpose of the Home Tuition Scheme is to provide a compensatory educational service for children who, for a number of reasons such as chronic illness, are unable to attend school. The scheme was extended in recent years to facilitate tuition for children awaiting a suitable educational placement and also to provide early educational intervention for pre-school children with autism.

Home tuition was approved for the child in question by my Department from the start of the school year until the end of September 2011 as there was no available placement. Home Tuition was subsequently extended until 14th October 2011, for the purpose of completing the enrolment process. My Department subsequently extended the provision of home tuition until 9th December to facilitate transitional arrangements regarding the enrolment of this child in the school in question.

I wish to advise the Deputy that the Board of Management of the school in question committed to fully implementing the recommendations of both the HSE and a subsequent DES report which was prepared subsequent to a review of the school by a member of the Department’s inspectorate and an Educational Psychologist. My Department has remained in regular contact with the Principal and the Board of Management of this school. The Board of Management of [998]the school has advised DES that all recommendations have been or are being implemented in full. My Department will continue to closely monitor progress in this regard.

99. Deputy Seán Kenny asked the Minister for Education and Skills the number of permanent, temporary and agency staff by grade currently working in the Baldoyle FÁS centre, Dublin. [39012/11]

Minister of State at the Department of Education and Skills (Deputy Ciarán Cannon): There are no agency staff working in Baldoyle Training Centre.

Below is a listing of all permanent staff based in Baldoyle Training Centre by Unit and Grade.

In addition to the listing below there is one temporary Grade 11 in Training Services; this contract will finish on the 16th December 2011.

	Grade	Total of Staff by Grade
	6	1
	7	5
	8	54
	10	3
	11	24
	13	4
Total Of Staff in each Unit		91

100. Deputy Seán Kenny asked the Minister for Education and Skills the number of employees across the third level sector earning €150,000 or more; and the number earning over €200,000 or more. [39013/11]

Minister for Education and Skills (Deputy Ruairí Quinn): The information sought by the Deputy is as follows: The number of employees earning €150,000 & less than €200,000 is 105. The number currently earning €200,000 or more is 103. The Deputy will be aware that the Government has sought to achieve a pay ceiling of €200,000 per annum within the public sector. Of the 103 earning over €200,000 per annum, 94 are Academic Medical Consultants, remuneration for whom falls in the main within the remit of the Minister for Health. The Deputy will be aware that any changes to the terms and conditions of these 94 consultants will have to be considered in the context of the Minister for Health’s approach towards the remuneration of all medical consultants 4 of the remaining appointments are Heads of Universities and the remaining 5 were appointed under a Framework provided for in Section 25(5)(a) of the Universities Act, 1997.

Remuneration in the case of these ‘Framework appointments’ is not subject to Ministerial sanction, and having regard to the Act, a pay ceiling may not be imposed. This Framework is being reviewed at present at my request. Since becoming Minister for Education and Skills, I have personally written to the Chairpersons of the University Governing Bodies requesting them to ask those individuals who earn in excess of the pay ceiling of €200,000 to make voluntary waivers of salary. Details of the methodology of how such voluntary waivers are to be [999]effected were issued by my Department at the end of October 2011. Given the short time since the arrangements were notified I think it is reasonable to allow some time for this matter to be concluded, but I can assure the Deputy that I am keen to ensure progress is made on this important issue in the coming period.

101. Deputy Nicky McFadden asked the Minister for Public Expenditure and Reform the total pay, benefits and claimed expenses of the Information Commissioner in the years 2008, 2009 and 2010 and the relevant pension and or lump sum arrangements that will be applicable on completion of the current term; the total pay, benefits and claimed expenses of the Commission for Environmental Information, if additional to the above, in the years 2008, 2009 and 2010 and the relevant pension and or lump sum arrangements that will be applicable on completion of the current term; the total pay, benefits and claimed expenses of the Ombudsman for the Public Service in the years 2008, 2009 and 2010 and the relevant pension and or lump sum arrangements that will be applicable on completion of the current term. [38320/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): For the purposes of PQ number 38320/11, I have taken “the total pay, benefits and claimed expenses of the Information Commissioner” to refer to the Ombudsman/the Information Commissioner/the Commissioner for Environmental Information. The Ombudsman was appointed to her roles as Ombudsman and Information Commissioner with effect from 1 June 2003 for a period of 6 years and was subsequently re-appointed for a second term. In May 2007, the Ombudsman was appointed to the additional role of Commissioner for Environmental Information. There was no additional remuneration or benefits associated with this appointment and she was not entitled to any additional expenses through her being assigned this additional role. The Ombudsman is also an ex-officio member of the Standards in Public Office Commission, the Constituency Commission and Referendum Commission (when in existence), and she carries out these roles without additional remuneration.

Section 3(1) of the Ombudsman Act, 1980 provides that the Ombudsman shall receive the same remuneration and allowances for expenses as are paid to a judge of the High Court. Therefore, the pay levels for the Ombudsman were as follows: €231,366 with effect from 1 January 2008; €237,151 with effect from 1 March 2008; €243,080 between 1 September 2008 and 1 January 2010. As a result of the Financial Emergency Measures in the Public Interest (No. 2) Act, 2009, the salary of the Ombudsman was reduced by 15% to €206,618 with effect from 1 January 2010. The Ombudsman is also subject to the pension related deduction imposed upon all public servants with effect from 1 March 2009 under the terms of the Financial Emergency Measures in the Public Interest Act, 2009.

The Ombudsman also participated in the voluntary surrender of pay scheme which was introduced with effect from 1 November 2008. The figures in the paragraph above do not reflect this reduction. Most recently, as a result of taking a voluntary cut in remuneration, the salary of the Ombudsman is now at €200,000 p.a. The effect of a legislative amendment provided for in the Financial Emergency Measures in the Public Interest (Amendment) Bill 2011 which is currently before the Oireachtas is that the current statutory link with that of a High Court Judge for salary purposes for new appointees to the position of Ombudsman will be removed.

In addition to pay, the Commissioner is in receipt of an annual expense allowance in line with the judicial allowance paid to a judge of the High Court. In this regard, she received an allowance of €8,701 in 2008, €9,057 in 2009 and €9,057 in 2010.

[1000]Her vouched expenses for 2008 were €3,110, €10,353 in 2009 and €6,009 in 2010. These encompass out of pocket air travel, subsistence, mileage, telephone and other expenses associated with carrying out all of her various roles.

The pension arrangements for the Ombudsman are in accordance with those of judges of the High Court. The Ombudsman is a member of the Ombudsman Superannuation Scheme, 1987 and the Ombudsman (Spouses’ and Children’s) Contributory Pension Scheme, 1989, in accordance with statutory instruments S.I. 70 of 87 and S.I. 269 of 89 respectively. These contain details of all of her entitlements under the scheme. Section 4(1) of S.I. 70 of 89 provides:

“4(1) A member who—

(a) having completed at least 5 years’ actual service as Ombudsman and being aged 67 years, retires from that office, or

(b) so retires on medical grounds in accordance with paragraph 6 of this Scheme, or

(c) having held office as Ombudsman for not less than 6 years and being eligible and available for reappointment to that office, is not reappointed thereto, or

(d) retires or resigns from the office of Ombudsman having completed not less than 15 years’ actual service as Ombudsman and being aged 65 years or more,

shall be awarded and paid by the Minister a pension of an amount per annum calculated at the rate of 1/30th of the amount of his pensionable remuneration for each year of his pensionable service, subject to a maximum of 15/30ths, and a gratuity of an amount calculated at the rate of 1/20th of the amount of his pensionable remuneration for each year of his pensionable service, subject to a maximum of 15/20ths:

provided, however, that in the case of a member who, having held office as Ombudsman for only one term of 6 years and being eligible and available for reappointment to the office for a second such term, is not reappointed, the amount of the gratuity aforesaid shall be equal to ½ of the amount of his pensionable remuneration.”

In accordance with the terms of the Ombudsman (Spouses’ and Children’s) Contributory Pension Scheme, 1989, the spouse’s and children’s contribution is 4 % of remuneration, rather than the standard 1.5%.

On completion of her current term, the Ombudsman will have undertaken 12 years’ service.

102. Deputy Paschal Donohoe asked the Minister for Public Expenditure and Reform if he will ascertain from the Office of Public Works when works will commence on a flood mitigation proposal (details supplied) in County Mayo; and if he will make a statement on the matter. [38433/11]

Minister of State at the Department of Public Expenditure and Reform (Deputy Brian Hayes): The Office of Public Works (OPW) is continuing to develop a proposal for mitigation works in consultation with the National Parks & Wildlife Service (NPWS), regarding flood protection for the Roundfort-Hollymount area, while taking account of its environmental sensitivity and status.

This is a complex proposal entailing assessment of levels and flows from the turloughs in order to design appropriate works. This assessment is ongoing at present.

[1001]Once the data required is compiled and verified, the OPW will revert to the NPWS. It is not possible at this stage to indicate when works will commence.

103. Deputy Anne Ferris asked the Minister for Public Expenditure and Reform if a decision has been made on the release of funding for the Bray flood relief scheme; and if he will make a statement on the matter. [38510/11]

Minister of State at the Department of Public Expenditure and Reform (Deputy Brian Hayes): The Office of Public Works (OPW) has already provided substantial funding to Bray Town Council, which has allowed the council to bring the flood relief scheme through the design stage and the procurement of a civil works contractor.

I am pleased to inform the Deputy that the Bray Flood Relief Scheme will be part of the 2012 announcement that I intend to set out on Friday of this week.

104. Deputy Olivia Mitchell asked the Minister for Public Expenditure and Reform if the Office of Public Works Royal Institute of Architects of Ireland architectural graduate training scheme is still in operation; the number of students who have applied; if further positions are likely to be offered on this scheme; if clarity could be given in respect of current applicants; and if he will make a statement on the matter. [38878/11]

Minister of State at the Department of Public Expenditure and Reform (Deputy Brian Hayes): The Office of Public Works sponsors a post-graduate architect training scheme to provide practical experience for graduate architects wishing to prepare for the Royal Institute of the Architects of Ireland (R.I.A.I.) (NUI) examination in professional practice or RIBA Part 3 examinations. The training programme is available for up to a maximum of thirty graduates for a period of three years. This Office currently has twenty-two graduates on the training programme, including seven from the most recent competition run by the R.I.A.I. While eight graduates were placed from the last competition, one decided to leave and was replaced by the next on the panel. There are currently five applicants remaining on the panel and these will be placed on the programme as and when the work programme permits and resources permit.

105. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform when the Property Registration Authority will be brought under the Freedom of Information Act; if the legislation to do this had been prepared for the Land Registry to be taken under the Act; the reason that this had not been implemented; and if he will make a statement on the matter. [38895/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): My Department is carrying out preparatory work to implement the commitments in the programme for Government. When this work is complete I will bring proposals to Government in relation to the Freedom of Information Acts. These proposals will include the proposed extension of the provisions of the Freedom of Information Acts to the Property Registration Authority.

106. Deputy Seán Kenny asked the Minister for Public Expenditure and Reform the budget allocated for the refurbishment and extensions to Garda stations for the years 2008, 2009, 2010 and to date in 2011; and the amount spent in each of these years. [39009/11]

[1002]Minister of State at the Department of Public Expenditure and Reform (Deputy Brian Hayes): The total spent on Garda Station refurbishments/extensions for the years in question is:

Year	Amount
2008	€8.079m
2009	€4.944m
2010	€5.398m
2011 to date	€7.039m

These figures do not include expenditure on new build Garda Stations or works of a maintenance nature.

107. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform the grants and amounts paid by him to community and voluntary groups in Galway city and county to date in 2011; and if he will list the chairperson, secretary and treasurer of each group that were beneficiaries of same. [38344/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): My Department has no function in this particular matter.

108. Deputy Alan Farrell asked the Minister for Public Expenditure and Reform the increments made payable to public sector workers within his Department in the years 2010 and 2011; the increments due in 2012 in tabular form; and if he will make a statement on the matter. [38364/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): As legislation was enacted in July 2011 to establish my Department, I am not in a position to provide relevant details for the period prior to then. However, 43 staff members in my Department have had increments paid to date.

109. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the estimated cost to his Department of a 2% increase in the standard rate of VAT; and if he will make a statement on the matter. [38468/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): Since its establishment in July 2011, my Department has operated a shared service arrangement with the Department of Finance in respect of certain goods and services acquired by one, or other, of the Departments. I understand that the Minister for Finance will provide the estimate requested by the Deputy using 2010 as a reference year and that will cover both Departments.

110. Deputy Robert Dowds asked the Minister for Public Expenditure and Reform the progress he is making in terms of curbing high public service pensions; and if he will make a statement on the matter. [38587/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): As the Deputy will know, there have been several retrenchments in public service pension conditions which have applied to serving staff and current pensioners in recent years. The Financial Emergency in the Public Interest Act 2009 introduced a pension-related deduction amounting to some 7% of pay on average, while the Financial Emergency in the Public Interest (No. 2) Act 2009 reduced pay by a similar proportion and legislated for a “grace period” within which pensions would not be affected by this cut. This period is due to expire on 29 February 2012.

In addition, the Financial Emergency in the Public Interest Act 2010, which is also part of the EU-IMF Programme, imposed a Public Service Pension Reduction on public service pensions in payment and for those who retire before the end of the “grace period”, amounting to 4% on average. For those retiring after the “grace period”, their pension calculation will be based on their actual pay at the time of retirement, i.e. the protection of the Financial Emergency Measures in the Public Interest (No. 2) Act 2009 will not apply. There have also been taxation-related changes during this time, such as the reduction in the personal fund threshold and in the exemption for lump sum pension payments.

I recently announced the Government’s intention to increase from 12% to 20% the top rate of Public Service Pension Reduction in respect of pension amounts over €100,000. This is to be given effect by way of an amendment to the Financial Emergency Measures in the Public Interest (Amendment) Bill 2011, which is currently before the Oireachtas.

In the longer-term, the Government is moving to secure substantial savings in the cost of public service pensions by way of the proposed introduction of a single public service pension scheme for all new entrants. This scheme, which is currently before the Oireachtas in the form of the Public Service Pensions (Single Scheme) and Remuneration Bill 2011, will feature a career-average (not final-salary) basis for pension awards, adjustment of accrued benefits and pensions in line with inflation, and an increased minimum pension age. The design of the new scheme is expected to impose an especially sharp reduction in the value of pensions for high-paid public service retirees, especially those who have enjoyed multiple or late-career promotions.

111. Deputy Robert Dowds asked the Minister for Public Expenditure and Reform the progress being made in public service reform; the way he is ensuring that when positions are being eliminated all grades of public service are equally affected; and if he will make a statement on the matter. [38588/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): On 17 November, I announced several key developments relating to Public Service Reform and published the Government’s Public Service Reform Plan which sets the basis for the comprehensive and strategic reform of the Public Service in the coming years. The challenging fiscal position which we face means that far-reaching reform of the Public Service is essential in order to ensure it is customer-focused, leaner, more efficient, better integrated and delivering maximum value for money.

[1004]This Government has already shown that reform must be led from the top through a whole range of measures. We have reduced the pay of the Taoiseach and Ministers; reformed Ministerial transport arrangements; changed the composition of TLAC to include an external Chair and more external members; introduced new pay ceilings for senior public servants; changed the TLAC terms that apply to Secretaries General on retirement; reduced the number of Oireachtas Committees; and published legislation to significantly reduce future Public Service pensions costs, to name just some areas. There have also been significant reforms under the Croke Park Agreement, as set out in the recently published summary of progress which is available on the Implementation Body’s website.

Of course, we need to do much more and the Public Service Reform Plan outlines the priority actions and timelines for reform in a broad range of areas such as public service numbers, e-Government, customer service, shared services, procurement, business process improvement, public expenditure reform, agency rationalisation and so on. The Plan particularly focuses on actions to improve performance by organisations and individuals in order to ensure greater efficiency, effectiveness and economy.

It is planned to have an integrated approach to public service reform which will align a number of key elements, including the Programme for Government, the Comprehensive Review of Expenditure, delivery of reform to front line services within individual sectors which is ongoing, co-ordinated delivery of the cross-cutting reforms in the Reform Plan, and the Public Service Agreement.

Importantly, the Reform Plan sets out how implementation should be driven and monitored, including by the Reform and Delivery Office which I have established in my Department to facilitate, drive and support the reform programme. The Office is being led by a recently appointed Programme Director who has experience of implementing large scale restructuring in the private sector. This Office will work closely with organisations across the Public Service with a view to enabling them to drive the delivery of reform at a local level, as well as lead on certain cross-cutting reforms.

In terms of the latter part of this Question, a central element of the Reform Plan is the preservation of critical front line services in tandem with a very significant reduction in Public Service numbers over the coming years. There will be a further reduction of 23,500 in Public Service numbers by 2015 (from end 2010 levels).

In this context, the moratorium on public service recruitment and promotion applies to the entire Public Service, with certain specific exemptions in the Health and Education sectors. The only other reason for making exceptions to the moratorium is on the basis of the business case in respect of the particular situation or post, and this in turn depends firstly on the incidence of vacancies arising and secondly on the assessment by local management of what posts are most critical at any particular point in time.

As outlined in the Reform Plan, both central and sectoral Manpower Planning Groups are being established to address the operational and strategic consequences on the planned further reduction in Public Service numbers. Of course, it is part of the day to day function of the management of all public bodies to assess, budget and plan for current and ongoing staffing requirements including the identifying of key posts and services.

112. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform [1005] the former Revenue Commissioners in receipt of pensions; the names of the recipients; and the amount they receive from the pensions on an annual basis in tabular form. [38636/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): The four former Chairmen of the Revenue Commissioners each receive a pension of €114,839.40 after Public Service Pension reduction. As is normal practice the names of the relevant Civil Servants are not included in the reply.

113. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform whether public service pension reduction will be applied to the combined annual amount of ministerial and Oireachtas pensions of former individual office holders or if the reduction applied separately to each of the two annual pension figures. [38637/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): The position at the moment is that the Financial Emergency Measures in the Public Interest Act 2010 provides for an average Public Service Pension Reduction (PSPR), with effect from 1 January 2011 and estimated to save €100 million in a full year, of about 4% of pension in line with the following rates and bands:

Annual Public Service Pension (€)	Reduction Rate
First 12,000	0%
Between 12,000 and 24,000	6%
Between 24,000 and 60,000	9%
Balance above 60,000	12%

Under the legislation passed last year, the PSPR applies separately to each individual public service pension. This was done for practical and legal reasons, including because the paying authorities who calculate and pay the pension and the PSPR will not normally be aware of other public service pension benefits and one cannot aggregate for some and not others. This also applies to former Ministers and former Oireachtas members, who receive two pensions at present. I intend to allow public service-wide pension aggregation to address this.

114. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the former Ministers and taoisigh in receipt of ministerial and Oireachtas pensions; the names of the recipients; and the amount they receive from the pensions on an annual basis less the public service pension reduction, including the 20% reduction to be applied on pension income of more than €100,000 in tabular form. [38638/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): The data sought by the Deputy is currently being collated and will be provided to the Deputy as soon as possible. Any inconvenience caused by this delay is regretted.

115. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the former public servants in receipt of public sector pensions of more than €100,000 per year; the recipients’ names; the final position they held in the public service on retirement, the gross pension amount they receive before the public sector pension reduction is applied and also the pension figure after the PSPR is applied in tabular form. [38646/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): It has not been possible to collate the data in the time available. It will be provided to the Deputy by the end of this week. Any inconvenience caused by this delay is regretted.

116. Deputy Mattie McGrath asked the Minister for Public Expenditure and Reform the month in which he expects the Bill to allow for changes to the Valuation Office in an effort to improve the roll-out of the national programme for the revaluation of all commercial and industrial properties in the country will be published; if this matter is receiving priority; and if he will make a statement on the matter. [38845/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): I have submitted draft Heads of a Bill amending the Valuation Act 2001 to the Government for approval. Subject to such technical adjustments as may be found necessary in the course of drafting, approval is also sought to publish the general scheme for the information of the public, in line with the Programme for Government commitment on Dáil reform to publish such details at an early stage in order to facilitate debate. Subject to approval being given, the Bill will be published and processed as soon as possible, subject to the Government’s schedule for enactment of legislation.

117. Deputy Joe Carey asked the Minister for Public Expenditure and Reform if he will explain recruitment practices within the Office of Public Works; and if he will make a statement on the matter. [38856/11]

Minister of State at the Department of Public Expenditure and Reform (Deputy Brian Hayes): Entry level State industrial positions in the Office of Public Works are normally filled by public competitions, which are open to both serving staff and the public at large. By long standing agreement, supervisory positions are filled by confined competition, where suitable internal applicants present.

118. Deputy Robert Troy asked the Minister for Public Expenditure and Reform if he will introduce legislation to ensure that publicly funded projects will only be awarded to companies based here. [38904/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): Public procurement regulations which transpose the provisions set out in EU Procurement Directives require that contracts above a certain value must be advertised EU wide and awarded to the most competitive tender in an open and objective process. The aims of the regulations are to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for public money. It would be a breach of the rules for a public body to favour or discriminate against particular candidates on grounds of nationality and there are legal remedies which may be used against any public body infringing these rules.

I would point out that the open market regime affords opportunities for Irish companies to win business abroad as part of the EU Single Market.

119. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform if he will detail the lease period beginning and end date for each building rented by the Office of Public Works. [38961/11]

[1007]

120. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform if he will detail the floor space of each building rented by the Office of Public Works. [38962/11]

121. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform the number of public servants employed in each building rented by the Office of Public Works. [38963/11]

122. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform if he will identify all leases that contain a renegotiation clause, contain no renegotiation clause or contain an upward only rent increase clause for each building rented by the Office of Public Works. [38964/11]

Minister of State at the Department of Public Expenditure and Reform (Deputy Brian Hayes): I propose to take Questions Nos. 119 to 122, inclusive, together.

The information requested by the Deputy is being compiled and will be provided next week.

123. Deputy John McGuinness asked the Minister for Public Expenditure and Reform the cost of courses in higher education undertaken by senior civil and public servants in each of the past five years; if there is a claw back on the costs should the employee leave the service; and if he will make a statement on the matter. [38982/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): I propose to reply to this question on behalf of the Department of Public Expenditure and Reform and Department of Finance as a shared service Training Unit now provides training services to both Departments.

I have taken the phrase “senior civil servants” to represent the grade of Assistant Principal Officer and upwards for the purpose of this question. Many courses are undertaken by officers, often in their own time, and the information available to both Departments is based on the amount of monies refunded to staff members in respect of eligible courses. Fees are only refunded for courses that have relevance to the work of either Department.

The amounts refunded by the two Departments in respect of courses for each of the past five years are set out below. In respect of the years 2007 to 2010 inclusive a full refund (100%) was granted in respect of courses undertaken. Due to a need to match available funding to demand each year not all applicants have received a full refund for 2011 but all approved applicants have received at least a 70% refund to date. This position will be reviewed at the end of the year.

Year	Amount
2007	39,182
2008	61,330
2009	39,521
2010	22,455
2011	14,743

An undertaking is signed by all applicants seeking a refund of fees. This undertaking stipulates that if the recipient of a refund leaves the service without completing 12 months service in respect of each yearly refund they must refund the fees paid.

[1008]

124. Deputy John McGuinness asked the Minister for Public Expenditure and Reform if the EU, IMF and ECB have been furnished with the details of all payments, allowances, pensions and retirement packages paid to the civil and public service over the past five years and the future costs of such arrangements; if the troika has expressed any views relative to these costs and the possible reforms needed. [38983/11]

Minister for Public Expenditure and Reform (Deputy Brendan Howlin): As part of the general examination of budgetary policy in Ireland, the discussions with the EU-IMF and ECB have reviewed the main aspects of pay, pensions and numbers policy in the civil and public service.

The discussions have covered developments in these areas in the recent past and the prospects for the medium and longer term. The Troika reports set out their views on these and other issues. The Deputy will note that the assessments issued from time to time by these bodies of the Government’s implementation of the Programme have been very positive.

The Deputy will be aware that a number of measures have been taken to reduce the pay and pensions bill. These measures have applied to serving staff and current pensioners in recent years. The Financial Emergency in the Public Interest Act 2009 introduced a pension-related deduction amounting to some 7% of pay on average, the Financial Emergency in the Public Interest (No. 2) Act 2009 reduced pay by a similar proportion and legislated for a “grace period” within which pensions would not be affected by this cut. This period is due to expire on 29 February 2012.

In addition the Financial Emergency in the Public Interest Act 2010, which is part of the EU-IMF Programme, reduces public service pensions in payment and for those who retire before the end of the “grace period” by 4% on average. For those retiring after the “grace period”, their pension calculation will be based on their actual pay at the time of retirement, i.e. the protection of the Financial Emergency Measures in the Public Interest (No. 2) Act 2009 will not apply. There have also been taxation-related changes during this time, such as the reduction in the personal fund threshold and in the exemption for lump sum pension payments.

With regard to the costs of civil and public service pensions, I have recently brought forward the Public Service Pensions (Single Scheme) and Remuneration Bill 2011 which provides for far-reaching reform of public service pensions. The Bill’s principal purpose is to introduce a new single pension scheme for all new entrants to the public service. The Bill will ensure that public service workers continue to have access to good pensions and a reasonable standard of living in retirement, while the Exchequer benefits from greater control over the costs and the future burden on taxpayers is reduced. The new scheme is a commitment under the EU-IMF Programme of Financial Support for Ireland.

125. Deputy Maureen O’Sullivan asked the Minister for Jobs, Enterprise and Innovation if he will be acknowledging the fact that 2012 is the Year of the Co-operative; his plans to recognise the work of the co-operative movement; and if he will make a statement on the matter. [38314/11]

132. Deputy Paschal Donohoe asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to the fact that this is the International Year of the Co-Operative Movement and if Ireland is involved in same; if any consideration has been given to any measures to further develop the co-operative movement here; and if he will make a statement on the matter. [38390/11]

[1009]Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): I propose to take Questions Nos. 125 and 132 together.

I am indeed aware that the United Nations has designated 2012 as the International Year of Co-operatives, and earlier this year I secured the agreement of Government to draft legislation to ease the regulatory burden on co-operative societies and to make it easier to start up and run a co-operative as an alternative form of enterprise organisation. I hope to publish the Draft Bill early next year and I expect that the amendments I am proposing will make the co-operative model more attractive for those wishing to use it.

By introducing these legislative changes for co-operatives, the Government is recognising the value of the co-operative business model to our economy, particularly at the present time. I believe that these measures will facilitate the development of co-operatives into the future.

My responsibility lies in the legislative provision for co-operatives in general. Any initiatives to facilitate the development of co-operatives in particular sectors, for example group water schemes, renewable energy or agricultural co-operatives, would be a matter for my colleagues in the respective Government Departments.

126. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation the grants and amounts paid by him to community and voluntary groups in Galway city and county to date in 2011; and if he will list the chairperson, secretary and treasurer of each group that was a beneficiary of same. [38342/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): My Department has not made any payments to community and voluntary groups in Galway City and Council to date this year.

127. Deputy Alan Farrell asked the Minister for Jobs, Enterprise and Innovation the purpose of his promised legislation on collective investment schemes; when he expects to publish this Bill; and if he will make a statement on the matter. [38351/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): Since the establishment of the Irish Financial Services Centre in 1987, successive Ministers who have held the Company Law elements of my present portfolio have been responsible for the enactment of legislation relating to collective investment schemes used by the Investment Funds Industry, either as stand alone instruments or as part of more comprehensive Acts. Examples include the Undertakings for Collective Investment in Transferable Securities Regulations 1989, Part 13 of the Companies Act 1990 and the Investment Funds, Companies and Miscellaneous Provisions Acts of 2005 and 2006.

Consistent with the work underway to consolidate all existing 15 Companies Acts, a project to undertake a similar exercise was discussed with representatives of the Funds Industry and the Financial Regulator. The intention was to have all of the relevant legislation in one place, and in the process to streamline the various elements which had been developed over many years comprising, for example, of an application for authorisation process to the competent authority — now the Central Bank — ongoing supervision relating, for example, to the making of appropriate returns as well as the ability of the competent authority to take remedial action where necessary, and so on.

Following these discussions, and given that the nature of collective investment schemes are essentially financial products, officials of my Department engaged with their counterparts in the Depart[1010]ment of Finance with a view to the latter Department assuming responsibility for all legislation relating to these collective investment schemes. While agreement in principle for a transfer of responsibility has been reached, and has already resulted in the making by the Minister for Finance of the necessary Regulations transposing the latest EU UCITS Regulations in July of this year, further discussions are necessary to finalise the matter. In these circumstances, it is likely that further consideration of matters relating to the consolidation of legislation governing collective investment schemes will be a matter for my colleague the Minister for Finance.

128. Deputy Alan Farrell asked the Minister for Jobs, Enterprise and Innovation the increments made payable to public sector workers within his Department in the years 2010 and 2011; the increments due in 2012 in tabular form; and if he will make a statement on the matter. [38362/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): I set out below the numbers of staff of my Department who were approved for a pay increment in 2010 and 2011 together with the number of staff who will be due to be considered for the payment of an increment in 2012. The payment of increments is subject to satisfactory performance under the Performance Management Development System (PMDS) and compliance with sick leave regulations. To provide precise figures for the cost of these increments would require extensive work on the part of the relevant sections of my Department, which have limited resources. However, I am providing estimated figures for the costs of increments for the years in question. These estimates have been calculated on the following basis — taking the average increment for the relevant grade multiplied by the number of officers in the grade who were approved for an increment (or in the case of 2012, the number of officers who will fall to be considered for an increment). The estimated costs are on a full year cost basis and on the basis of the staff member working on a full-time basis. However, in reality, increments fall due throughout the year and therefore the costs are not incurred on a full-year basis. Furthermore, a significant number of staff of my Department does not work on a full-time basis. For example, in 2011 over 18% of staff worked on a work-sharing basis and over 12% worked reduced hours under the Shorter Working Year Scheme. For these reasons, the actual costs of increments in the years in question will be significantly less than the estimated figures provided beneath.

I would also refer the Deputy to the reply of my colleague, the Minister for Public Expenditure and Reform to a related question on 10 November 2011 (question no. 99 of 10 November). I note in particular the Minister’s point that the cost of increments will reduce in the coming years for several reasons including retirements and the number of employees reaching the maximum of their pay scale.

Year	No. of staff approved for an increment	Estimated cost on a full-year basis €
2010	530	754,654
2011	434	608,622

Year	No. of staff who will be considered for an increment	Estimated cost on a full-year basis €
2012	323	435,272

129. Deputy Willie O’Dea asked the Minister for Jobs, Enterprise and Innovation the effect on competitiveness, as reported to him by Forfás, if businesses must pay in full for employees’ sick leave; and if he will make a statement on the matter. [38384/11]

130. Deputy Willie O’Dea asked the Minister for Jobs, Enterprise and Innovation the effect on employment and the number of jobs which could be lost, as reported to him by Forfás, if businesses must pay in full for employees’ sick leave; and if he will make a statement on the matter. [38385/11]

131. Deputy Willie O’Dea asked the Minister for Jobs, Enterprise and Innovation the effect on wages, as reported to him by Forfás, if businesses must pay in full for employees’ sick leave; and if he will make a statement on the matter. [38386/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): I propose to take Questions Nos. 129 to 131, inclusive, together.

The introduction of a Statutory Sick Pay scheme, along the lines of those which operate in many other European countries, is one of the issues that has been considered by the Government in the context of reducing public expenditure. As I mentioned in my reply to Parliamentary Question No. 79 of 22 November 2011 to Deputy Aengus Ó Snodaigh, I asked Forfás to examine the potential impact on competitiveness and employment of Statutory Sick Pay, if such a scheme were to be introduced in Ireland.

I have received a preliminary report from Forfás on this matter, but it would be premature of me to comment on it until the Cabinet has completed its consideration of such issues.

Question No. 132 answered with Question No. 125.

133. Deputy Michael McGrath asked the Minister for Jobs, Enterprise and Innovation the estimated cost to his Department of a 2% increase in the standard rate of VAT; and if he will make a statement on the matter. [38466/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): To the end of November 2011, my Department has incurred VAT of approximately €798,500 at the standard rate of 21% on goods and services delivered in the year to date to the approximate value of €3,802,600.

Based on an a similar level of expenditure in 2012, a 2% increase in the standard rate of VAT, would see my Department incurring an estimated extra cost of €80,000 in the coming year.

134. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation if provisions can be made to facilitate a work permit in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [38522/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): My Department processes applications in respect of the different types of employment permits and all applications are processed in line with the Employment Permits Act 2006. The Employment Permits Section in my Department informs me that it has no record of an application in this case. I [1012]wish to advise the Deputy that it is current Government policy to issue new employment permits only in respect of:

highly skilled, highly paid positions or;

non-EEA nationals who are already legally resident in the State on valid employment permits or;

positions requiring specialist or scarce skills, expertise or qualifications which cannot be filled otherwise. Further information on the current policy for new employment permits can be found on my Department’s website at www.djei.ie.

135. Deputy Michael Healy-Rae asked the Minister for Jobs, Enterprise and Innovation his views on a matter (details supplied) regarding recruitment; and if he will make a statement on the matter. [38626/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): The position in relation to the company mentioned by the Deputy is that Enterprise Ireland has provided €60,000 of training assistance towards the development of management structure capable of running a large IT organisation. In relation to the 90 jobs recently announced by the company, no funding was provided by Enterprise Ireland for these jobs.

As is always the case, decisions in relation to the recruitment of staff is ultimately a matter for the company concerned.

However, to address the broader issue raised by the Deputy, the matter of skills shortages in particular sectors is obviously a matter of concern for Government. In relation to the sector in which the company referred to by the Deputy operates — the ICT sector — these skills shortages are not unique to Ireland, but must be addressed. To this end, an ICT action plan is being developed across relevant government departments and agencies to identify clear action lines that will address the skills needs of the ICT sector. The lead on this initiative is being taken by my colleague, Mr Ruairí Quinn, T.D., Minister for Education and Skills. While it is positive that third level enrolments in science, technology, engineering and mathematics disciplines in Ireland have increased by some 30% since 2008, there will be a time lag before this increased demand from students will feed through into increased graduate output. Actions which are being taken in the short term to address the gap include the provision of over 1,400 places on Springboard ICT programmes, from which 550 people are due to graduate by next June with awards at honours degree or masters level.

The Higher Education Authority has also just issued a call for proposals seeking collaborative proposals from higher education providers and industry partners for the delivery in 2012 of a full-time graduate conversion programme in programming.

136. Deputy Brendan Griffin asked the Minister for Jobs, Enterprise and Innovation the grant aid or tax concessions available for a person (details supplied) in County Kerry who is purchasing a piece of machinery overseas for the purpose of starting up an export business; and if he will make a statement on the matter. [38629/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): Subject to certain eligibility criteria new and developing micro-enterprises may qualify for financial support from [1013]the CEBs in the form of priming, expansion/development and feasibility/innovation grants. The CEBs give priority to enterprises in the manufacturing or internationally traded services sector and must always give consideration to any potential for deadweight and displacement arising from a proposed enterprise.

Whilst not all businesses will be eligible for financial assistance, the CEBs also deliver non-financial supports such as one-to-one mentoring and a range of business advice and training programmes to improve management capability development within micro-enterprises designed to help new and existing enterprises to operate effectively and efficiently so as to last and grow, which may be available as appropriate to the needs of the promoter’s business.

The promoter may in the first instance wish to contact their most appropriate Board, Kerry CEB, to discuss what options may be available to them and their proposed business venture. Kerry County Enterprise Board is located at the County Buildings, Rathass, Tralee, Co. Kerry. Phone No.: 066 718 3522; fax No.: 066 712 6712; e-mail: kerryceb@kerrycoco.ie; website: www.kerryenterprise.ie.

137. Deputy Kevin Humphreys asked the Minister for Jobs, Enterprise and Innovation the budget expenditure granted to Science Foundation Ireland on an annual basis from 2000 to 2011 in tabular form, with a breakdown of capital and current funding; if he will provide the total cost of remunerating the board of SFI, a breakdown of the individual remuneration provided to each board member, and the salary of the chief executive; and if he will make a statement on the matter. [38756/11]

Minister of State at the Department of Jobs, Enterprise and Innovation (Deputy Sean Sherlock): The total Science Foundation Ireland (SFI) expenditure over the period 2000-2011 is shown in Table 1 below. The 2011 figures are estimated.

Table 1: SFI expenditure 2000-2011 inclusive.

Year	Capital/ research grants (€)	Current expenditure/pay (€)	Administrative costs of running grant programmes (€)	Other (€)
2000	0	0	0.40m	0
2001	8.76m	0.43m	1.69m	0
2002	31.00m	0.90m	3.10m	0
2003	65.00m	1.00m	3.42m	0
2004	108.59m	1.32m	3.82m	0
2005	118.20m	2.74m	4.62m	0
2006	139.86m	3.21m	4.49m	0
2007	155.72m	3.56m	4.77m	0
2008	158.81m	4.37m	5.01m	0
2009	171.17m	4.67m	4.54m	0
2010	150.00m	4.32m	3.92m	0
2011	153.8m	4.29m	3.56m	5m*

*Contribution for e-Journals, which formed part of the transfer of the Programme for Research in Third-level Institutions from the Department of Education and Skills. The e-Journals provision was not an extra funding requirement for the Exchequer in 2011.

Details of the 2010 remuneration made to Board members of SFI, as outlined in the 2010 Annual Report and Accounts, are shown in Table 2.

[1014]Table 2: SFI Board Members’ Remuneration 2010

Board Members	Amount Paid in 2010
Sean Ahearne	€13,463
Tom Boland	€0
Dr. Rita Colwell	€12,600
Bernie Cullinane	€13,463
Prof. Patrick Fottrell (Chairman)	€21,600
Prof. Frank Gannon	€11,722
Peter MacDonagh	€12,600
Dr. Martina Newell McGloughlin	€12,600
Dr. James Mountjoy	€12,600
Martin Shanagher	€0
John Travers	€12,600
Dr. Don Thornhill	€7,108
Pat Duane	€3,219
Total for 2010	€133,575

SFI Board members who are public servants do not receive a fee for board membership.

Board fees have subsequently been reduced by a further 5% to €20,520 per annum for the Chairperson and €11,970 per annum for ordinary board members. This adjustment was implemented by SFI in February 2011 and backdated to the beginning of 2010.

Recruitment of a Director General for SFI is currently on-going. The applicable salary amount is under consideration by the Minister for Public Expenditure and Reform.

138. Deputy Kevin Humphreys asked the Minister for Jobs, Enterprise and Innovation the capital budget granted to Science Foundation Ireland that was spent on salaries of researchers from 2000 to 2011; and if he will make a statement on the matter. [38757/11]

Minister of State at the Department of Jobs, Enterprise and Innovation (Deputy Sean Sherlock): Researchers funded by Science Foundation Ireland (SFI) are employed by their respective higher education institutions. Therefore individual researcher salaries are a matter for the higher education institutions.

SFI is currently supporting approximately 3,000 researchers. On average, approximately 60% of any SFI grant award is a contribution to the salary costs of the researcher teams. The remainder of the SFI award goes towards supporting the research effort through overheads provision to the relevant higher education institution and covering the cost of necessary research equipment.

Given the volume of individual awards, in excess of 2,200 to date, and the several thousands of researchers directly supported by SFI since its establishment in 2000, it is not possible to specify precisely the amount of capital grants that were a contribution to the salaries of researchers.

139. Deputy Kevin Humphreys asked the Minister for Jobs, Enterprise and Innovation the pension entitlements of researchers employed under capital grants distributed by Science Foundation Ireland; if they are subject to the public sector pension levy; and if he will make a statement on the matter. [38758/11]

[1015]Minister of State at the Department of Jobs, Enterprise and Innovation (Deputy Sean Sherlock): Currently Science Foundation Ireland (SFI) is directly supporting approximately 3,000 researchers in Ireland’s higher education institutions. The researchers in receipt of SFI grants are employed by the various higher education institutions. Consequently pension entitlements are a contractual matter between the individual researchers and their respective employers.

Members of research teams who are classed as public servants are subject to the public sector pension levy.

The Deputy should note that responsibility for employment conditions in the higher education sector falls to my colleague, the Minister for Education and Skills.

140. Deputy Seán Ó Fearghaíl asked the Minister for Jobs, Enterprise and Innovation his views on the issue of forced labour; the incidences of cases reported to him or agencies under his remit; his views on whether additional legislation is required to deal with this issue; and if he will make a statement on the matter. [38853/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): This is a matter in the first instance for the Minister of Justice Equality and Defence.

While my Department has a responsibility for providing redress mechanisms for alleged breaches of employment law, this does not extend to the area of forced labour or slavery, which are serious criminal offences and by definition are outside the normal employment relationship.

141. Deputy Caoimhghín Ó Caoláin asked the Minister for Jobs, Enterprise and Innovation if his attention has been drawn to cases in which employers close down and reopen under different names as a ruse to evade orders to pay wages due to employees, including cases of forced labour in which workers may be owed tens of thousands of euro for years of overwork and underpayment; if he will introduce legislation to prevent this practice; and if he will make a statement on the matter. [38883/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): The Company Law Enforcement Act 2001 established the Office of the Director of Corporate Enforcement and strengthened the legislative provisions dealing with insolvent companies. The Director has powers to initiate company investigations, prosecutions, restrictions and disqualifications with a view to curbing abusive practices by directors.

Section 56 of the Company Law Enforcement Act 2001 provides that the liquidator of an insolvent company must submit a report to the ODCE together with information on the conduct of any person who was a director of the company during the 12 months preceding its liquidation. The liquidator must also proceed to apply to the High Court for the restriction of each of the directors of the insolvent company, unless relieved of that obligation by the ODCE.

The ODCE has also been conferred with certain powers to address unliquidated insolvent companies i.e., those companies which are not in liquidation and have not yet been dissolved. The legal powers include applying to the High Court for the restriction of the company’s directors. This power has been successfully used to sanction directors.

A restriction declaration, if made, prohibits an individual from acting, either directly or indirectly, as an officer of a company or from being involved in its formation or promotion for five years, unless the company is adequately capitalised. In the case of a private company, the [1016]capital requirement is €63,487 in allotted paid-up share capital. The equivalent figure for public companies is €317,435.

If the Deputy has knowledge of a suspected breach of company law this should be reported to the Director of Corporate Enforcement. The Director is independent in the performance of his statutory duties and I have no direct function in these matters.

Legal obligations relating specifically to payment of wages are contained, principally, in the Payment of Wages Act 1991. Complaints of non-compliance may be referred to the Employment Appeals Tribunal (EAT) or to the Rights Commissioner Service. Enforcement of EAT determinations or Rights Commissioner decisions may be made through the Circuit Court.

As forced labour is a serious criminal offence and by definition outside normal employment relationships, this is a matter for my colleague the Minister for Justice and Equality.

142. Deputy Caoimhghín Ó Caoláin asked the Minister for Jobs, Enterprise and Innovation his plans to ratify the International Labour Organisation convention on domestic workers; and if he will make a statement on the matter. [38884/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): I welcome the successful outcome of discussions at the International Labour Conference (ILC) that lead to the adoption of a new International labour standard aimed at ensuring Decent Work for Domestic Workers.

The final text of the draft Convention was one that the Irish Government was in a position to support and the Convention on Decent Work for Domestic Workers now becomes ILO Convention No. 189 supplemented by a Recommendation.

The issue of ratification by Ireland of this Convention will be considered in the context of our standard approach to the ratification of international instruments. In this regard, the Convention will need to be examined from the perspective of any changes that may be required to existing domestic legislation. This will involve careful examination of the provisions of the Convention as well as obtaining any legal advice that might be necessary. Issues around implementation and enforcement of the Convention will also need to be considered.

While ratification of the Convention remains under consideration, I would point out that the full suite of employment rights legislation, including that of redress for violations of employment rights, that apply to employees generally in Ireland apply equally in the case of domestic workers.

143. Deputy Robert Troy asked the Minister for Jobs, Enterprise and Innovation if he will consider legislation to tackle below-cost selling of alcohol. [38893/11]

Minister for Jobs, Enterprise and Innovation (Deputy Richard Bruton): Pricing strategies, including selling below cost, in any business are a legitimate marketing tool and are the normal outcome of the competitive process. I have no direct function in relation to pricing strategies which are a matter for the retailer and are not an offence unless they involve abuse of a dominant position.

The sale of alcohol is essentially regulated by the liquor licensing laws, which are the policy responsibility of the Minister for Justice and Equality and I have no direct function in this matter.

144. Deputy Brendan Griffin asked the Minister for Social Protection when redundancy payment will be made available to a person (details supplied) in County Kerry; and if she will make a statement on the matter. [38383/11]

Minister for Social Protection (Deputy Joan Burton): A redundancy lump sum claim in respect of the person concerned was awarded on 14 November 2011. A cheque payment should be received by the person concerned in the coming days.

145. Deputy Finian McGrath asked the Minister for Social Protection if there is any evidence that another welfare amnesty would result in more revenue. [38643/11]

Minister for Social Protection (Deputy Joan Burton): The prevention of fraud and abuse of the social welfare system is an integral part of the day-to-day work of my Department which processes in excess of 2 million claims each year and makes payments to some 1.4 million people every week. However, it is important to recognise that the vast majority of people are receiving the entitlement due to them.

Most social welfare customers fully declare their means and circumstances and, therefore, do not receive more than their entitlements. However, where a customer fails to fully declare their means or circumstances, they may receive payments to which they are not entitled and this can result in an overpayment. It is important that the Department seeks to recover overpayments where they occur and an overpayment debt will remain on the customer’s records until fully recovered. This will result in a reduction of all future entitlements up to and including the state pension. Following the death of a customer who owes a debt, the Department will have a claim on any estate remaining.

I have no plans to introduce an amnesty for customers as I do not consider this to be an appropriate response. The Department is fully committed to recovering 100% of overpayments arising as a result of suspected fraud or error. Effective debt recovery and the prosecution of persons who defraud the social welfare system are an integral part of the deterrent approach to prevent abuse of the system. The Deputy may be aware that I recently launched a new Fraud Initiative (2011-2013) which is aimed at putting in place a range of actions to combat fraud and abuse of the social welfare system and to ensure there is public confidence and trust in the system.

146. Deputy Martin Ferris asked the Minister for Social Protection when the Labour Court recommendation LCR 19293 relating to FÁS supervisors will be implemented. [38822/11]

190. Deputy Pat Deering asked the Minister for Social Protection the reason a Labour Court recommendation LCR 19293 dated 22 July 2008, recommending that a pension scheme be introduced without delay for community employment scheme supervisors and assistant supervisors, has to date not been implemented; and the reason claims for a pension scheme have been rejected. [38814/11]

[1018]Minister for Social Protection (Deputy Joan Burton): I propose to take Questions Nos. 146 and 190 together.

I would refer the Deputies to my reply to questions numbers 99, 89 & 102 on 1st December 2011. The position remains unchanged.

147. Deputy Bernard J. Durkan asked the Minister for Social Protection if and when a decision will be made regarding a review of means in respect of an application for jobseeker’s allowance or benefit in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [38293/11]

Minister for Social Protection (Deputy Joan Burton): A revised decision has been made on the jobseeker’s allowance application of the person concerned following a review of his means. The new assessment is effective from 31 August 2011 and all arrears payable will be issued to him on 6th December 2011.

148. Deputy John O’Mahony asked the Minister for Social Protection when a person (details supplied) in County Mayo will receive a decision on their application for disability allowance and when a medical assessment will take place; and if she will make a statement on the matter. [38299/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 6 August 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office on 28 November 2011 and the appeal will, in due course, be assigned to an Appeals Officer for consideration. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

149. Deputy Denis Naughten asked the Minister for Social Protection when a decision will issue on an application in respect of a person (details supplied) in County Roscommon; and if she will make a statement on the matter. [38307/11]

Minister for Social Protection (Deputy Joan Burton): I confirm than an application for carer’s allowance has been received from the person concerned. On completion of the necessary investigations relating to all aspects of her claim a decision will be made and the person concerned will be notified directly of the outcome.

150. Deputy Sandra McLellan asked the Minister for Social Protection if she will review an application for back to school allowance in the case of a person (details supplied) in County Cork; and if she will make a statement on the matter. [38319/11]

Minister for Social Protection (Deputy Joan Burton): The Back to School Clothing and Footwear Allowance (BSCFA) scheme operates from the beginning of June until the end of September each year. A person may qualify for a BSCFA payment if he or she is in receipt of a social welfare or health service executive payment, is participating in an approved employ[1019]ment scheme or attending a recognised education or training course, and has household income at or below certain specified levels. The person concerned was disallowed BSCFA on 22 September, 2011 as his means were deemed to be above the income limit for his family size. The person concerned has requested a full review of this decision and the BSCFA review section will be in touch with him shortly in this regard.

151. Deputy Brendan Griffin asked the Minister for Social Protection the specific grants and amounts paid by her to community and voluntary groups in Galway city and county to date in 2011; and if she will list the chairperson, secretary and treasurer of each group that was a beneficiary of same. [38345/11]

Minister for Social Protection (Deputy Joan Burton): The Department of Social Protection operates a number of initiatives in co-operation with organisations and companies in the community, voluntary and not-for-profit sectors. The primary focus of these initiatives is the provision of training and work placement opportunities for people who are unemployed.

Outside of the Galway City area, Galway Rural Development Company Limited and Forum Connemara Limited operate the Rural Social Scheme with an allocation of 156 and 14 participants respectively. In addition, both companies deliver Tús, the community work placement initiative, with an allocation of 120 and 20 respectively. Galway City Partnership operates Tús in the Galway City area with an allocation of 80 participants. Funding is provided to the companies to meet participant payroll and other costs of the operations of the companies involved.

FÁS continues to have day-to-day responsibility for the operation of community employment and the jobs initiative and engages community organisations to sponsor training and work placement opportunities. The organisations engaged in community employment in county Galway during 2011 are listed in the table.

Community Employment Organisation	Location	Grant Paid in 2011
Abbeyknockmoy Parish Society	Galway City	237,953
Ability West	Galway City	232,090
Access Music Project (Galway)	Galway City	21,824
Athenry District C E Project	Athenry	276,947
Aughrim CommunityDevelopment Co	Aughrim	82,123
Ballinasloe Trg For Employment	Ballinasloe	402,406
Ballygar Community Group	Ballygar	4,000
Ballinasloe Community Rersources	Ballinasloe	75,342
Castleblakeney Comm.Dev.Group	Castleblakeney	209,966
Clonberne Community Centre Co.	Clonberne	190,142
Clonfert CommunityAssociation Limited	Clonfert	8,500
Cuan Mhuire	Coolarne	150,086
Duchas Na Gaillimhe	Galway City	197,719
Dunmore Parish Scheme	Dunmore	304,137
Enable Ireland	Galway City	135,209
Forum Connemara Limited	Letterfrack	639,575
Galway Boxing Development.	Galway City	87,600
Galway Centre For Ind. Living	Galway City	187,839
Galway Ciitzens Inf/Gal D.Y.S	Galway City	4,750
Galway Rural Development Co. Limited.	Athenry	157,461
Galway Simon Community	Galway City	186,496
Galway Trav. Support Group Limited	Galway City	24,786
Glenamaddy Community Care Limited	Glenamaddy	173,933
Gort&Dist.Com Dev.Group Limited	Gort	125,899
Headford Community C.E.	Headford	272,349
Irish Wheelchair Association	Tuam/City	89,721
Kilcoona Parish Community Ses	Kilcoona	168,834
Kilcornan Community Development Association Limited	Kilcornan	167,051
Killimor T.F.Q. Co Limited	Killimor	91,223
Knocknacarra District Cmty CE	Galway City	125,531
Le Cheile Westside Project	Galway City	95,737
Loughrea Parish Council	Loughrea	227,286
Milltown Community Council	Milltown	243,422
Mountbellew Development Co-Operative	Mountbellew	458,103
Moylough Parish Services	Moylough	277,048
Multiple Sclerosis Society Of Ireland	Galway City	180,730
Oughterard Com Enterprises Limited	Oughterard	145,013
Redemptorist Monastery	Galway City	203,969
Renmore Parish Development Association	Renmore	123,210
Ryehill Community Council	Ryehill	46,212
Shantalla Community Development Co Limited	Galway City	292,529
Sliabh Aughty CommunityAssoc Limited	Abbey	165,058
St. James Community Centre	Galway City	300,866
Tuam & District Mental Health	Tuam	212,671
Tuam Travellers Education & Development Group	Tuam	270,965
Williamstown Development Co.	Williamstown	145,816
Woodlawn Heritage Group Limited	Woodlawn	106,005
Youth Work Ireland Limited	Galway City	121,625

The organisations engaged in delivering the Jobs Initiative in county Galway during 2011 are listed in the table.

Jobs Initiative Organisation	Location	Grant Value
Galway Peoples Resource Centre	Galway City	619,220
Forum Connemara Limited	Letterfrack	182,072
Connemara West Centre	Cliften	205,289

Under the Activation and Family Support Programme funding can be made available by the Department to assist individuals and families to enhance their employability through education, training and personal development. In the main, these activities are organised and delivered by community and voluntary bodies involved in the provision of training, family support and specific activities. The organisations to which funds were granted under the programme during 2011 are set out in the table.

Activation and Family Support Programme Organisation	Location	Grant Value
Ballinasloe Communty Resources Ltd	Ballinasloe	62,576
Ballinasloe Job Club	Ballinasloe	9,600
Ballybane Community Resource Centre Ltd	Ballybane	27,950
Galway City Partnership	Galway City	57,300
Galway Traveller Movement Ltd	Galway City	13,253
Home Start Programme Athenry	Athenry	700
St. Brendan’s Education Centre	Loughrea	2,310
Time4us Ltd	Tuam	30,000
Tuam & District Mental Health Association	Tuam	3,990
Tuam Adult Education Centre	Tuam	10,000
Tuam Community Training Centre	Tuam	20,000
Western Traveller Intercultural Development Centre	Tuam	2,000

The Department also funds the community services programme which supports locally based not-for-profit organisations to provide services to their communities. The table summarises the funding committed to in 2011.

Community Services Programme Organisation	Location	Contract Value €
Tearmann Éanna Teoranta	Baile na hAbhainn	108,132
Inishturk Community Club	Inishturk Island	42,066
Mountbellew Community Development	Mountbellew	38,066
Cumann Peile Naomh Anna	Leitir Móir	70,066
Clifden Town Hall	Clifden	38,066
Gort & South Galway Community & Leisure Centre	Gort	38,066
Ionad Peile Na Gaillimhe	Baile Chlair na Gaillimhe	51,033
Inisbofin Community Services Programme Co Ltd	Inishbofin	116,132
Athenry Arts & Heritage Centre	Athenry	95,099
Ballybane Community Resource Centre	Ballybane	89,099
CLEAS	Oileáin Arann	108,132
Athchúrsáil Árann Teoranta	Aran Islands	165,231
Glenamaddy Community Development Company	Glenamaddy	117,649
Mervue United AFC Ltd	Mervue	165,231
Oranmore Community Development Assocation Ltd	Oranmore	112,889
Oughterard Leisure Centre Ltd	Oughterard	70,066
Oughterard Tourism & Development	Oughterard	93,099
Westside Age Inclusion	Bothar Le Cheile	108,616
Galway Teleworking Co-Op Society Ltd	Mountbelllew	74,066
Galway Traveller Movement	Galway City	172,542
Aonad Resource Centre Limited	Ballygar	95,099
SEG Integrated Rural Development	Portumna	70,066
Westside Resource Centre	Galway City	58,389

In general, the Department of Social Protection and FÁS do not hold the names of the officers of these organisations and contact is maintained with managers, supervisors or other staff [1022]members employed. The members of the boards of management may be obtained by contacting the organisations directly or by consulting the Companies Registration Office.

152. Deputy Alan Farrell asked the Minister for Social Protection the increments made payable to public sector workers within her Department in the years 2010 and 2011; the increments due in 2012 in tabular form; and if she will make a statement on the matter. [38365/11]

Minister for Social Protection (Deputy Joan Burton): There is currently a total of 6,042 staff serving in my Department, including staff who transferred from the Community Welfare Service on 1st October 2011. The number of increments which have been paid by my Department, or are due to be paid during the period in question, is set out in the table.

Year	2010	2011	Due in 2012
Increments Awarded	2,176	2,368	2,585

The figure provided for increments which may be due for payment in 2012 includes former Community Welfare Service staff and 131 officers currently employed on temporary contracts, whose contracts may terminate in advance of the consideration of an increment. The annual increment is normally paid on the anniversary of appointment, provided performance, which includes attendance and punctuality during the year, is satisfactory. Therefore, the figure provided for 2012 is provisional and indicates the number of officers who are due to be considered for the award of an increment next year. Details of officers transferring from FÁS on 1st January 2012 are not included as the personal details of the officers concerned are not yet available to my Department.

153. Deputy Niall Collins asked the Minister for Social Protection the position regarding a carer’s allowance application in respect of a person (details supplied) in County Cork. [38370/11]

Minister for Social Protection (Deputy Joan Burton): I confirm than an application for carer’s allowance has been received from the person concerned. On completion of the necessary investigations relating to all aspects of his claim a decision will be made and the person concerned will be notified directly of the outcome.

154. Deputy Niall Collins asked the Minister for Social Protection the position regarding a supplementary welfare allowance application in respect of a person (details supplied ) in County Cork. [38373/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that the appeal from the person concerned was referred to an Appeals Officer who proposes to hold an oral hearing in this case on 15 December 2011. The person concerned has been notified of the arrangements for the hearing. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

155. Deputy Michelle Mulherin asked the Minister for Social Protection the position regarding an application for carer’s allowance in respect of a person (details supplied) in County Mayo and if it will be expedited as matter of urgency. [38375/11]

156. Deputy Jack Wall asked the Minister for Social Protection the position regarding an application for rent allowance in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [38376/11]

Minister for Social Protection (Deputy Joan Burton): The person concerned made an application for rent supplement on 27th October 2011. Her claim was awarded on 30th November and the person concerned is now in receipt of her full entitlement to rent supplement based on her household circumstances.

157. Deputy Pat Breen asked the Minister for Social Protection when a decision will issue on an appeal in respect of a person (details supplied) in County Clare; and if she will make a statement on the matter. [38399/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 18 October 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Social Welfare Services on the grounds of appeal be sought. When received, the appeal in question will be referred in due course to an Appeals Officer for consideration. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

158. Deputy Michael Creed asked the Minister for Social Protection if a person (details supplied) in County Cork is entitled to carer’s allowance; and if she will make a statement on the matter. [38407/11]

Minister for Social Protection (Deputy Joan Burton): I confirm than an application for carer’s allowance has been received from the person concerned. On completion of the necessary investigations relating to all aspects of his claim a decision will be made and the person concerned will be notified directly of the outcome.

159. Deputy Noel Grealish asked the Minister for Social Protection her views on community welfare officers not paying rent supplement direct to compliant landlords in situations where tenants have lost cases of rent arrears by determination orders from the Private Residential Tenancies Board; her views that continued payment to claimants in such cases can contribute to fraud, notwithstanding that the legislative provisions provide that the tenant’s relationship [1024]is with the Department and previously the Health Service Executive; and if she will make a statement on the matter. [38415/11]

160. Deputy Noel Grealish asked the Minister for Social Protection if she will undertake a review of the legislation regarding the payment of rent supplement to tenants; if she will acknowledge that there are three parties involved, tenant, social services and landlord, and that evidence of non-payment by the tenant to a compliant landlord should be considered as fraud; if she will acknowledge the role of compliant landlords in eliminating fraud against her Department; and if she will make a statement on the matter. [38416/11]

161. Deputy Noel Grealish asked the Minister for Social Protection if there is a specific form to be completed by a tenant requesting that rent supplement be paid direct to a compliant landlord, or another third party; if the request has to be made and signed in the presence of the community welfare officer; if a signed letter from a tenant, given to a landlord, is acceptable; and if she will make a statement on the matter. [38417/11]

162. Deputy Noel Grealish asked the Minister for Social Protection the circumstances in which a tenant can request payment of rent supplement to a compliant landlord; her views that it is best practice for tenants to agree to this in their own interests and to help combat fraud; her views that the provision for direct payment to landlords and others, repeated in many circulars to community welfare officers, should be the norm, or only in exceptional cases; and if she will make a statement on the matter. [38418/11]

Minister for Social Protection (Deputy Joan Burton): I propose to take Questions Nos. 159 to 162, inclusive, together.

The purpose of rent supplement is to provide short-term support to eligible people living in private rented accommodation, whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. Under the legislative provisions governing rent supplement, the Department’s relationship is with the tenant; the tenant makes the application for rent supplement and payment is made to the tenant. Rent supplement is specifically for the benefit of tenants to assist them with their accommodation needs. There is no direct relationship between the landlord and the Department in the administration of the scheme.

Current legislation provides for the making of a rent supplement payment to another person (e.g. a relative, a landlord or landlord’s agent) on behalf of the recipient, at the tenant’s written request and subject to the consent of the Department. Where a tenant wishes to have the rent supplement paid directly to the landlord, the tenant is requested to sign an indemnity form authorising payment of the supplement directly to the landlord. The form does not have to be signed in the presence of the Department’s representative. Approximately 20% of rent supplement payments are currently paid to a person other than the tenant.

Under the current arrangements, even with direct payment, landlords still have to collect the tenant contribution towards their rent (a minimum of €104 per month). The amount of rent supplement payable depends on the tenant’s income; in some cases tenants pay only the minimum contribution while for others the tenant makes an additional contribution to their rent based on their financial circumstances. For example, where a person is in part-time income and receives just 10% of his or her rent directly from the State, the landlord would receive the 10% directly whilst still having to collect the 90% from the tenant.

[1025]It is open to the landlord to bring to the attention of the Department any instance where a tenant is receiving rent supplement but is not paying their rent. Where the Department becomes aware that a person receiving rent supplement is not using that supplement to meet housing costs, payment of the supplement is suspended and the matter investigated. Any overpayment of rent supplement incurred in circumstances of this kind may be recoverable from the tenant. Where a landlord has a grievance in relation to the non-payment of rent by a tenant, s/he may apply to the Private Residential Tenancies Board (PRTB) to have the dispute resolved through the Board’s dispute resolution process.

163. Deputy Billy Kelleher asked the Minister for Social Protection the position regarding a disability allowance appeal in respect of a person (details supplied) in County Cork; and if she will make a statement on the matter. [38423/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that the person concerned was assessed by a Medical Assessor of the Social Welfare Services who was of the opinion that he was medically unsuitable for Disability Allowance. He appealed this decision and in that context he was assessed by another Medical Assessor who also expressed the opinion that he was medically unsuitable for Disability Allowance. At this stage the Social Welfare Services have been requested to submit relevant documents to the Social Welfare Appeals Office in this case. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and is responsible for determining appeals against decisions on social welfare entitlements.

164. Deputy Billy Kelleher asked the Minister for Social Protection the position regarding a disability allowance appeal in respect of a person (details supplied) in County Cork; and if she will make a statement on the matter. [38425/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 22nd November 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Social Welfare Services on the grounds of appeal be sought. When received, the appeal in question will be referred to an Appeals Officer for consideration. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

165. Deputy Denis Naughten asked the Minister for Social Protection the reason persons on one-parent family payments are ineligible for the JobBridge scheme; her plans to revise the eligibility; and if she will make a statement on the matter. [38437/11]

Minister for Social Protection (Deputy Joan Burton): My Department continues to monitor and review the operation of the JobBridge scheme, including its eligibility criteria, on an ongoing basis. However, there are no plans to amend the following participant eligibility criteria:

currently be in receipt of a live claim (Jobseekers Allowance/Jobseekers Benefit/Signing for Social Insurance Contribution Credits) on the Live Register; and

[1026]

have been in receipt of Jobseekers Benefit, Jobseekers Allowance or signing for Social Insurance Contribution Credits for a total of 78 days or more in the last 6 months.

Given the scale of the unemployment crisis, one of the objectives of labour market policy is to keep those on the Live Register close to the labour market and prevent their drift into long-term unemployment. For these reasons, the eligibility for the JobBridge scheme is confined to those whose primary payment is a Jobseekers payment and who are on the Live Register. In so designing the scheme, the policy objective is to prioritise scarce resources on those on the Live Register so as to increase their chances of leaving it and ensure a reduction in exchequer costs over time.

Individuals in receipt of One Parent Family Payment may access a wide range of activation supports including the FÁS Work Placement Programme, which is designed to provide participants with valuable work experience, thereby improving their prospects of securing employment.

166. Deputy Finian McGrath asked the Minister for Social Protection if she will clarify a matter (details supplied). [38452/11]

Minister for Social Protection (Deputy Joan Burton): The Civil Service Code of Standards and Behaviour sets out the standards required of civil servants in the discharge of their duties and is an important element of the framework within which all civil servants are expected to work. Areas of the Code that may be relevant in this situation are outlined below.

Section 13 of the Code of Standards states that civil servants are not allowed to use their official positions to benefit themselves or others with whom they have personal, family, business or other ties. Section 14 of the Code states that civil servants may not at any time engage in or be connected with any outside business or activity which would in any way conflict with the interests of their departments/offices, or be inconsistent with their official positions, or tend to impair their ability to carry out their duties as civil servants. For this reason, civil servants intending to be engaged in or connected with any outside business or employment should inform their Personnel/Human Resources Management Section of such an intention.

A civil servant who, in the course of his or her official duties, comes into contact with any matter affecting any commercial undertaking in which he or she has an interest, must immediately disclose the nature and extent of that interest to the Secretary General or Head of Office. A civil servant is not permitted to make representations on behalf of an outside association or organisation, either as an individual or as a member of a delegation, in relation to matters for which his or her Department/Office has responsibility except with the specific prior consent of the Head of his or her Department/Office.

The officer concerned should be advised to contact the Personnel Officer of my Department to clarify the position in relation to their role as a Director on the Board of Marino Fairview Home Help Care Service Limited.

167. Deputy Bernard J. Durkan asked the Minister for Social Protection when a medical examination will be carried out in respect of an appeal for illness benefit in the case of a person (details supplied) in County Kildare; if she will arrange for expeditious review of this case; and if she will make a statement on the matter. [38455/11]

[1027]Minister for Social Protection (Deputy Joan Burton): Payment of illness benefit to the person concerned was disallowed by a Deciding Officer following an examination by a Medical Assessor of the Department who expressed the opinion that she was capable of work. An appeal was registered on 3rd November 2011 and the Social Welfare Appeals Office has advised me that, in accordance with statutory requirements, the Department was asked for the documentation in the case and the Deciding Officer’s comments on the grounds of the appeal. In that context, an examination by another Medical Assessor will be carried out. The person concerned will be notified when arrangements for the examination have been completed. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

168. Deputy Michael McGrath asked the Minister for Social Protection the estimated cost to her Department of a 2% increase in the standard rate of VAT; and if she will make a statement on the matter. [38469/11]

Minister for Social Protection (Deputy Joan Burton): The estimated cost to the Department of Social Protection of a 2% increase in the standard rate of VAT would be of the order of €3.3m. per annum. The Department’s expenditure on goods and services that are liable for VAT can vary from year to year. The estimate given above is based on relevant expenditure figures for 2010.

169. Deputy Noel Coonan asked the Minister for Social Protection when an application for invalidity allowance appeal will be finalised in respect of a person (details supplied) in County Limerick; and if she will make a statement on the matter. [38500/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 29 September 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office on 07 October 2011 and the appeal was assigned to an Appeals Officer on 22 November 2011 who will decide whether the case can be decided on a summary basis or whether to list it for oral hearing. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

170. Deputy Tony McLoughlin asked the Minister for Social Protection the position regarding an appeal for a position as carer in respect of a person (details supplied) in County Leitrim; and if she will make a statement on the matter. [38506/11]

Minister for Social Protection (Deputy Joan Burton): I am advised by the Social Welfare Appeals Office that an Appeals Officer, having fully considered all the evidence, disallowed the appeal of the person concerned by way of summary decision. The person concerned has been notified of the Appeals Officer's decision. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

171. Deputy Bernard J. Durkan asked the Minister for Social Protection when payment will issue in respect of one-parent family payment or a basic social welfare payment in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [38513/11]

Minister for Social Protection (Deputy Joan Burton): The person concerned was requested to provide additional information in support of her application for one parent family payment. A decision will be made on her application when she furnishes all documents requested. Her application for supplementary welfare allowance was refused as she failed to provide information requested. She has appealed this decision to the social welfare appeals office.

172. Deputy Bernard J. Durkan asked the Minister for Social Protection if and when an appeal will be heard in respect of an application for supplementary welfare allowance in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [38525/11]

173. Deputy Bernard J. Durkan asked the Minister for Social Protection if and when an appeal will be heard in respect of an application for mortgage interest supplement in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [38526/11]

Minister for Social Protection (Deputy Joan Burton): I propose to take Questions Nos. 172 and 173 together.

I am advised by the Social Welfare Appeals Office that an Appeals Officer having fully considered all the evidence disallowed the supplementary welfare allowance (mortgage interest supplement) appeal of the person concerned by way of summary decision. The person concerned has been notified of the Appeals Officer's decision. There is no trace of an application for basic supplementary welfare allowance for the person concerned. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

174. Deputy Clare Daly asked the Minister for Social Protection if a person (details supplied) in County Dublin could sign on in their local office and collect their payment in their local office. [38528/11]

Minister for Social Protection (Deputy Joan Burton): The person is currently on the part-time job incentive scheme. This scheme is for those working less than 24 hours a week who had been on jobseeker’s allowance for more than 15 months. It allows them to take up part-time work and get a part-time job allowance instead of jobseeker’s allowance.

Due to technical constraints, payment under this scheme must be made manually. Manual payments are authorised from the maintenance section of each Local Office and paid at the nearest Post Office. The local office in this case is Swords and currently, the services for Swords are provided from a number of locations, pending the acquisition of suitable premises in Swords itself. Fresh claims, enquiries and claim decisions are dealt with from two separate premises in [1029]Swords while the signing centre and maintenance section for Swords is located in North Cumberland Street, Dublin 1.

My Department appreciates the inconvenience but under the current arrangements until such time as suitable premises are available in Swords, the person must attend the maintenance section in North Cumberland Street to collect authorisation for a manual payment to be made at Parnell Street Post Office.

175. Deputy Sean Fleming asked the Minister for Social Protection when an appeal for a disability allowance will be granted in respect of a person (details supplied) in County Laois; and if she will make a statement on the matter. [38552/11]

Minister for Social Protection (Deputy Joan Burton): I am advised by the Social Welfare Appeals Office that an Appeals Officer having fully considered all the evidence, including that adduced at oral hearing, disallowed the appeal of the person concerned. The person concerned has been notified of the Appeals Officer's decision. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

176. Deputy Sean Fleming asked the Minister for Social Protection when an appeal for a disability allowance in respect of a person (details supplied) in County Laois will be granted; and if she will make a statement on the matter. [38553/11]

Minister for Social Protection (Deputy Joan Burton): I am advised by the Social Welfare Appeals Office that an Appeals Officer having fully considered all the evidence, including that adduced at oral hearing, has allowed the appeal of the person concerned. The person concerned has been notified of the decision. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

177. Deputy Patrick Nulty asked the Minister for Social Protection the position regarding an application for redundancy in respect of a person (details supplied) in Dublin 15; and when a decision will issue. [38563/11]

Minister for Social Protection (Deputy Joan Burton): A redundancy lump sum claim in respect of the person concerned was awarded on 1 December 2011. A cheque payment will issue shortly.

178. Deputy Robert Dowds asked the Minister for Social Protection if she will consider means testing children’s allowance so that families with incomes of greater than €100,000 are not eligible; and if she will make a statement on the matter. [38580/11]

Minister for Social Protection (Deputy Joan Burton): Child benefit assists parents with the cost of raising children and it contributes towards alleviating child poverty. Expenditure on child benefit for 2011 is estimated at €2.08 billion in respect of some 1.133 million children. The Government is conscious that child benefit, as a universal payment, can be an important source of income for all families, especially during a time of recession and high unemployment. The social protection system also provides assistance to low income families with children [1030]through the payment of qualified child increases on primary social welfare payments and through the family income supplement payment. Both of these provide a level of assistance which is directly or indirectly linked with a household’s income situation.

I have announced no plans to implement means-testing or income-testing of child benefit at this time. If the Government decided in principle to progress on these lines, there are many policy, legislative and administrative issues that would have to be addressed. These include:

From a policy perspective, detailed assessment would have to be given to a number of key questions such as the appropriate treatment of different types of income, cut-off points for family income and rates of benefit withdrawal;

Furthermore, consideration would also need to be given to the likely consequences of income or means-testing child benefit, as there is the potential for very significant disincentive effects for income earners as it would add to reducing the return from higher earnings;

Means testing of child benefit would address only one of the main child income support payments and a clear policy direction would have to be considered to ensure a consistent approach with other income-related payments; and

From an administrative perspective, a new mechanism for assembling household income would have to be put in place with very considerable administrative consequences. These would include ensuring that systems are in place to ensure that households only claimed benefits to which they were entitled, as the scale of means testing approximately 600,000 families would be significantly greater than anything required by the current social protection system currently.

This raises complex issues about the purpose and effectiveness of the full range of income supports provided through the social protection system. In this context and in line with a commitment in the Programme for Government, I established in June of this year an Advisory Group on Tax and Social Welfare to consider issues around these and a number of other matters. The issue of family and child income supports is currently being examined by the Group which has been tasked with recommending cost-effective solutions as to how employment disincentives can be improved and better poverty outcomes achieved, particularly child poverty outcomes. In the circumstances, any reforms in this area should comprehensively address the broader range of issues raised before the Government decides on how to proceed for the future.

179. Deputy Bernard J. Durkan asked the Minister for Social Protection when a decision will issue on an application for disability allowance in the case of a person (details supplied) in County Kildare who has no current income; if she will expedite this case; and if she will make a statement on the matter. [38603/11]

Minister for Social Protection (Deputy Joan Burton): I can confirm that the Department is in receipt of an application for disability allowance from the person concerned. On completion of the necessary investigations on all aspects of the claim a decision will be made and the person concerned will be notified directly of the outcome. The average time taken to process a claim to completion, including assessment of the claimant’s means, medical condition and habitual residence status is currently approximately 17 weeks. If the person is in need of urgent [1031]income support he can apply for the means tested supplementary welfare allowance (SWA) from the Department’s community welfare service.

Question No. 180 withdrawn.

181. Deputy Finian McGrath asked the Minister for Social Protection if she will respond to correspondence (details supplied) regarding redundancy payments. [38645/11]

Minister for Social Protection (Deputy Joan Burton): A redundancy lump sum claim in respect of the person concerned was received on 19 July 2011. Redundancy lump sum claims received at the start of May 2011 are currently being processed. My officials have written to the person concerned informing them of this position.

Question No. 182 withdrawn.

183. Deputy Noel Harrington asked the Minister for Social Protection if she will reinstate the carer’s allowance that was granted in April 2011 to a person (details supplied) in County Cork, which was returned in error to the Department due to it being delivered to the wrong house; and if she will make a statement on the matter. [38736/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 6 October 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Social Welfare Services on the grounds of appeal be sought. When received, the appeal in question will be referred to an Appeals Officer for consideration. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

184. Deputy John O’Mahony asked the Minister for Social Protection when a person (details supplied) in County Mayo will receive a reply in respect of their carer’s allowance appeal; and if she will make a statement on the matter. [38745/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 2 June 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office on 23 September 2011 and the appeal has been assigned to an Appeals Officer who will decide whether the case can be decided on a summary basis or whether to list it for oral hearing. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

185. Deputy Pat Breen asked the Minister for Social Protection when a decision will issue to a person (details supplied) in County Clare; and if she will make a statement on the matter. [38752/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 15 November 2011. It is a statutory requirement of the appeals process that the relevant Depart[1032]mental papers and comments by the Social Welfare Services on the grounds of appeal be sought. When received, the appeal in question will be referred to an Appeals Officer for consideration. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

186. Deputy Bernard J. Durkan asked the Minister for Social Protection further to Parliamentary Question No. 148 of 17 November 2011, if she will facilitate an appeal and review under section 311 of the Social Welfare Consolidation Act 2005 against the previous decision with a view to clarification of the sequence of events and the extent of information provided over a series of months; and if she will make a statement on the matter. [38754/11]

Minister for Social Protection (Deputy Joan Burton): For the reasons stated in my response to Parliamentary Question Ref. No. 35427/11 on 17 November 2011, the claim of the person concerned for rent supplement was disallowed by an Appeals Officer of the Community Welfare Service of the Health Service Executive on 23 May 2011. The person was informed of his right to a further appeal to the Chief Appeals Officer and that such appeal must be made, in writing, within 21 days of the date of that decision. I am advised by the Social Welfare Appeals Office that no appeal by the person concerned has been received by that office. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

187. Deputy Bernard J. Durkan asked the Minister for Social Protection if a review will take place of the eligibility for payment under the disability allowance scheme in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [38755/11]

Minister for Social Protection (Deputy Joan Burton): No application for disability allowance has been received to date from the person concerned. An application form and an information booklet have been sent to him. If the person in question wishes to apply for disability allowance, he should complete the form and return it to the Department and his entitlement to disability allowance will be examined. He will be notified in writing of the outcome.

188. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection if she is currently using the definition of “cohabitation” in the new Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, Part 15, section 172; and if the statement published on the website in the section, Civil Partnership FAQs, question 14, section A paragraph (c), as updated 24 March 2011, is correct. [38759/11]

Minister for Social Protection (Deputy Joan Burton): The term “cohabitant” is defined in the social welfare code in accordance with section 172 (1) of the Civil Partnership and Certain Rights and Obligations Act, 2010, which states that “a cohabitant is one of two adults (whether of the same or the opposite sex) who live together as a couple in an intimate and committed relationship and who are not related to each other within the prohibited degrees of relationship or married to each other or civil partners of each other”. This definition is also published on the Department’s website in the section Civil Partnership FAQs, Question 14, section A, Para[1033]graph c. Since 1 January 2011, the social welfare code recognises all cohabiting couples and the Department treats same and opposite sex cohabiting couples in a similar way.

In relation to cohabiting couples, the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, creates a cohabitant’s redress scheme for same-sex and opposite-sex couples giving protection to an economically dependent party at the end of a long-term cohabiting relationship (at least five years or two where there is a child of the relationship) where the couple has not chosen to marry or to register in a civil partnership as the case may be. Qualified cohabitants are not able to make a claim on the estate of a deceased cohabitant where their relationship ended more than two years before that person’s death (except where a court decides that the qualified cohabitant is still dependent on the deceased person). This allows the economically dependent partner at the end of the relationship, whether by break-up or bereavement to apply to court for certain reliefs, including for provision from the estate of the deceased partner, or for maintenance, pension adjustment orders or property adjustment orders, (the reliefs available on application to the Courts are at the courts discretion) and gives legal recognition to cohabitant agreements enabling cohabitants to regulate their joint financial affairs.

189. Deputy Jack Wall asked the Minister for Social Protection the position regarding an illness benefit appeal in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [38811/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that the appeal from the person concerned was referred to an Appeals Officer who proposes to hold an oral hearing in this case. There has been a very significant increase in the number of appeals received by the Social Welfare Appeals Office since 2007 when the intake was 14,070 to 2010 when the intake rose to 32,432. This has significantly impacted on the processing time for appeals which require oral hearings and, in order to be fair to all appellants, they are dealt with in strict chronological order.

While every effort is being made to deal with the large numbers awaiting oral hearing as quickly as possible, it is not possible to give a date when the person’s oral hearing will be heard, but s/he will be informed when arrangements have been made. The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

Question No. 190 answered with Question No. 146.

191. Deputy Brendan Griffin asked the Minister for Social Protection if a decision has been made on the appeal for disability allowance in respect of a person (details supplied) in County Kerry; and if she will make a statement on the matter. [38842/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 07 June 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office on 01 November 2011 and the appeal has been assigned to an Appeals Officer who will decide whether the case can be decided on a summary basis or whether to list it for oral hearing. The Social Welfare Appeals [1034]Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

192. Deputy Maureen O’Sullivan asked the Minister for Social Protection the plans in place regarding the implementation of an exit plan for graduate recruits in JobBridge to increase their chances of employment after the internship; and if she will make a statement on the matter. [38865/11]

Minister for Social Protection (Deputy Joan Burton): The aim of JobBridge is to assist individuals bridge the gap between unemployment and the world of work. JobBridge offers individuals a unique opportunity to develop new skills and earn valuable experience, while simultaneously showing a potential employer the valuable contribution they could make to their organisation. Upon completing a JobBridge internship an intern will have enhanced their employability. Anecdotal evidence shows that several individuals have secured employment as a direct result of their JobBridge experience.

There is no specific exit plan for participants of JobBridge as referred to by the Deputy. However, if an employer offers a JobBridge intern employment they may be able to avail of the Employer Job (PRSI) Incentive Scheme. Under this scheme employers will be exempt for 12 months from having to pay their share of PRSI for new employees who have been in receipt of Jobseekers Benefit/Allowance for at least 6 months. This may also include eligible JobBridge interns. A full evaluation of JobBridge will commence in early 2012. The evaluation will assess the impact of the scheme on the unemployed so as to inform future policy development in this area.

193. Deputy Maureen O’Sullivan asked the Minister for Social Protection the provisions being made to measure the effectiveness of current and future employment schemes; if any measurement exists specifically for graduate unemployment; and if she will make a statement on the matter. [38866/11]

Minister for Social Protection (Deputy Joan Burton): My Department funds and operates a wide range of initiatives to support the unemployed and other recipients of social welfare payments. Schemes and programmes are monitored on an ongoing basis to ensure they remain fit for purpose. Initial work on a review of certain activation measures has commenced. The format of the review has recently been agreed and it will take a number of months to complete. Employment and training programmes delivered by FÁS were the subject of a review undertaken by Forfás which was published in February 2010. In addition, my Department last month issued a request for tender for the evaluation of the JobBridge scheme which will be undertaken in 2012. The closing date for receipt of tenders is 9 December.

194. Deputy Patrick Nulty asked the Minister for Social Protection the position regarding fuel allowance in respect of a person (details supplied) in County Dublin; the reason the payment has been suspended; if it will be reviewed and put into payment; and if she will make a statement on the matter. [38876/11]

Minister for Social Protection (Deputy Joan Burton): The person concerned has been in receipt of illness benefit since 27 June 2011. Illness benefit is a short-term income support. Fuel allowance is not payable under the illness benefit scheme. Previously, the person concerned [1035]was in receipt of jobseeker’s allowance and qualified for fuel allowance under that scheme. If a person has an urgent or exceptional need they may apply to their local Community Welfare Officer for assistance under the supplementary allowance scheme.

Question No. 195 withdrawn.

196. Deputy Robert Troy asked the Minister for Social Protection the reason a person (details supplied) in County Westmeath is not being granted a full transition pension having been in full-time insurable employment since 16 years of age; if she will honour all social welfare contributions made by the person and whose employers may not fulfil their obligations to the Revenue Commissioners; and if she will make a statement on the matter. [38906/11]

Minister for Social Protection (Deputy Joan Burton): The qualifying conditions for State pension (transition) require the applicant to:

have entered insurable employment before attaining the age of 55 years (age 56 for State pension contributory).

have at least 260 paid contribution weeks, since entry into insurance.

have a yearly average of at least 24 paid/credited contributions.

According to the records of the Department, the person concerned has self-employment contributions paid from April 1989 to 2011. The Department does not have a record of the person concerned paying PRSI contributions as an employed contributor prior to that date. Self-employment (S-class) PRSI is not a reckonable class of social insurance for State pension (transition). A social welfare inspector has been requested to investigate the position relating to his employment as a mechanic during the period 1959 to 1980, and to confirm if any additional PRSI contributions would be due for this period. When this investigation has been completed, his claim to State pension (transition) will be reviewed and he will be notified of the outcome. The person concerned satisfies the conditions for entitlement to a State pension (contributory) at 98% of the maximum rate, payable from age 66.

Question No. 197 withdrawn.

198. Deputy Pat Breen asked the Minister for Social Protection when a decision will issue on carer’s allowance in respect of a person (details supplied) in County Clare; and if she will make a statement on the matter. [38916/11]

Minister for Social Protection (Deputy Joan Burton): The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 28th March 2011. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by or on behalf of the Deciding Officer on the grounds of appeal be sought. These papers were received in the Social Welfare Appeals Office on 19th September 2011 and the appeal was assigned to an Appeals Officer on 15th November 2011 who will decide whether the case can be decided on a summary basis or whether to list it for oral hearing.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions on social welfare entitlements.

199. Deputy Aengus Ó Snodaigh asked the Minister for Social Protection if any evaluation was carried out of the piloted part-time job opportunity programme between 1994 and 1998; the finding of same; and if she will make a statement on the matter. [38919/11]

Minister for Social Protection (Deputy Joan Burton): I am aware of the proposal advanced by Social Justice Ireland (SJI) that seeks to create 100,000 part-time working positions in the public, community and voluntary sectors. The proposal is based on a similar approach piloted between 1994 and 1998 where the participant is required to work the number of hours required to earn the equivalent of their social welfare payment and a small top-up. SJI propose that access would be on a voluntary basis and participants would be paid through the reallocation of social welfare payments to the employing organisations. Additionally, participants would be allowed to take up other paid employment in their spare time without incurring loss of benefits and would be subject to normal income tax and payroll deductions in the normal way if their total income brought them into the tax net.

The previous scheme was administered by CORI and operated for three years from June 1994. My understanding is that an evaluation was conducted by then Department of Enterprise and Employment which identified a number of innovations which were subsequently mainstreamed with a restructuring of community employment, the introduction of spousal swaps and the development of Jobs Initiative which was modelled on a 39 hour working week with the participant receiving the equivalence of their former social welfare rate of payment. The Jobs Initiative was subsequently closed to new applications in 2004 and currently supports over 1,300 people in employment.

Given the range of interventions my Department currently funds and operates, I would need to be convinced that the approach advanced by SJI could not be accommodated within the range of existing schemes that my Department currently funds and operates. I have already indicated that I wish to look at the effectiveness of the existing range of initiatives and schemes to see if better output can be achieved. At present, community employment has capacity to engage 23,300 participants; the rural social scheme supports 2,700; Tús — the community work placement initiative — has 2,000 on payroll and will have 5,000 participants in place in 2012. JobBridge currently has placed over 3,000 people in internships with a target of 5,000.

200. Deputy John McGuinness asked the Minister for Social Protection if she will expedite a decision relative to a claim for domiciliary care allowance and carer’s allowance in respect of a person (details supplied). [38979/11]

Minister for Social Protection (Deputy Joan Burton): The person concerned applied for Domiciliary Care Allowance (DCA) in respect of her two sons. These applications were referred to one of the Department’s Medical Assessors who found that the children were not medically eligible for the Allowance. She was notified of the decision on 19th August 2011 and has since appealed the decisions. Currently, one appeal is being reviewed by one of the Department’s Medical Assessors and the second appeal has been sent to the Social Welfare Appeals Office for their consideration.

Carer’s Allowance can be paid to persons providing full-time care to a child with a disability provided the child is in receipt of DCA and the applicant satisfies a means test. An application for Carer’s Allowance was received from the person concerned on 31st May 2011 in respect of her two sons. This application was refused on 8th November as neither child is in receipt of [1037]DCA. The person concerned was notified of the decision and informed of her right to appeal the decision to the Social Welfare Appeals Office.

201. Deputy John McGuinness asked the Minister for Social Protection her plans, if any, to provide some form of benefit or guaranteed income for self-employed persons who are now unemployed and have no income; if the benefits and pension entitlements enjoyed by the public sector will be extended to the private sector; if the guarantees outlined in the national pensions framework 2010 will be extended to all workers; and if she will make a statement on the matter. [38981/11]

Minister for Social Protection (Deputy Joan Burton): Self-employed persons are liable for PRSI at the Class S rate of 4% which entitles them to access long-term benefits such as State pension (contributory) and widow’s, widower’s or surviving civil partner’s pension (contributory). Ordinary employees who have access to the full range of social insurance benefits, including jobseeker’s benefit, pay Class A PRSI at the rate of 4%. In addition, their employers make a PRSI contribution of 10.75% in respect of their employees, resulting in the payment of a combined 14.75% rate per employee under full-rate PRSI Class A. (For employees earning less than €356 per week, the rate of employer’s PRSI is 4.25%).

In this context it should be noted that self-employed workers generally achieve better value for money by paying social insurance compared with employees. The 2005 Actuarial Review of the Social Insurance Fund found that the fund favours the self-employed over the employed when both employer and employee contributions are included in respect of the employed person. For example a male married self-employed contributor earning gross average industrial wages had a value for money index of 10.3 compared with an index of 3.1 for an equivalent employee. In basic terms this means that, with regard to benefits, the self-employed contributor can expect to receive over 10 times what he contributes to the social insurance fund compared to the employee who, even with access to a broader range of benefits, only gets 3 times what he and his employer contribute. The analysis demonstrates that, despite the fact that they are eligible for a narrower range of benefits, self-employed persons can gain substantially more from the fund than employees.

Any changes to the PRSI system in order to provide access to short-term benefits such as jobseeker’s benefit would have significant financial implications and would have to be considered in the context of a much more significant rise in the rate of contribution payable. I established the Advisory Group on Tax and Social Welfare earlier this year to meet the commitment made in the Programme for Government. The Advisory Group will, inter alia, examine and report on issues involved in providing social insurance cover for self-employed persons in order to establish whether or not such cover is technically feasible and financially sustainable.

The Deputy should be aware that self-employed persons may establish eligibility to assistance-based payments including payments such as jobseeker’s allowance. In general, assessment of means account will be taken of the level of earnings in the last twelve months in determining their expected income for the following year. In the current climate account is taken of the downward trend in the economy.

The National Pensions Framework (NPF) which was published in March 2010 provides for a range of reforms across all types of pension provision — private sector occupational schemes; voluntary or personal pensions, public sector pensions and the State pension. As such it impacts on a range of workers, including people who are self-employed. Elements of the NPF are specifically intended to assist those in the lower to middle income ranges to provide for pen[1038]sions in order to improve their post retirement income. However, the NPF aims to deliver security, equity, choice and clarity for all and to ensure that State support for pensions is equitable and sustainable.

Pension arrangements for public servants are the responsibility of the Minister for Public Expenditure and Reform. You will be aware that the reform of public sector pensions is a key element of the wider public sector reform agenda and a commitment in the agreement with the EU/IMF/ECB. The Department of Public Expenditure and Reform has been working on the development of a new single pension scheme for new entrants to the public sector and legislation providing for this scheme was published in September 2011.

Question No. 202 withdrawn.

203. Deputy Bernard J. Durkan asked the Minister for Social Protection if and when payment under the rent allowance scheme will issue in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [38999/11]

Minister for Social Protection (Deputy Joan Burton): The person concerned has been awarded rent supplement. Payment, including arrears, will issue to the landlord’s bank account on 29th December 2011.

204. Deputy Bernard J. Durkan asked the Minister for Social Protection if and when payment under the domiciliary care allowance scheme will issue in the case of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [39000/11]

Minister for Social Protection (Deputy Joan Burton): An application for domiciliary care allowance was received on 28th September 2011. This application was referred to one of the Department’s Medical Assessors who found that the child was not medically eligible for the allowance. A letter issued on 26th November 2011 advising of the decision. In the case of an application which is refused on medical grounds the applicant may submit additional information and/or ask for the case to be reviewed or they may appeal the decision directly to the Social Welfare Appeals Office within twenty one days.

205. Deputy Bernard J. Durkan asked the Minister for Social Protection, further to Parliamentary Question No. 148 of 17 November 2011, if she will clarify that rent allowance is not available to a parent who has less than full-time custody of his or her children; and if she will make a statement on the matter. [39001/11]

206. Deputy Bernard J. Durkan asked the Minister for Social Protection when it was decided to withdraw rent support from parents who do not have sole custody or are not the primary carer of their children; and if she will make a statement on the matter. [39002/11]

207. Deputy Bernard J. Durkan asked the Minister for Social Protection if rent support is payable to either parent or not at all in the case of shared custody of a child or children; and if she will make a statement on the matter. [39003/11]

[1039]Minister for Social Protection (Deputy Joan Burton): I propose to take Questions Nos. 205 to 207, inclusive, together.

The purpose of the rent supplement scheme is to provide short-term support to eligible people living in private rented accommodation whose means are insufficient to meet their accommodation costs and who do not have accommodation available to them from any other source. The overall aim is to provide short term assistance, and not to act as an alternative to the other social housing schemes operated by the Exchequer.

Every claim for rent supplement is determined having regard to the particular circumstances of the applicant. Any person seeking a rent supplement must first satisfy the Department’s representative that they have a housing need that they are unable to meet from their own resources. In addition, the Department must be satisfied that the residence is reasonably suited to the residential and other needs of the claimant. The Department must also be satisfied that the rent payable is reasonable having regard to the nature, character and location of the residence.

In a case where parents have joint custody of a child, the needs of both parents to have adequate accommodation to look after the child are taken into account when an application for a rent supplement is being determined. In such cases, documentation is normally required showing that a joint custody arrangement is in place and being availed of before a decision can be made. The fact that one parent is in receipt of rent supplement would not in itself preclude the other parent from being entitled to assistance towards their rent.

208. Deputy Brendan Griffin asked the Minister for Arts, Heritage and the Gaeltacht the grants and amounts paid by him to community and voluntary groups in Galway city and county to date in 2011; and if he will list the chairperson, secretary and treasurer of each group that was a beneficiary of same. [38334/11]

Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan): The information sought by the Deputy in relation to the grants and amounts paid by my Department to community and voluntary groups in Galway city and county to date in 2011 is set out in the following table. As the Deputy will be aware, my Department, as currently configured, was established on 2 June 2011 and therefore the available information is being provided from that date. As the Deputy will be further aware, on foot of the reconfiguration of Government Departments earlier this year, the prime responsibility in relation to community affairs now rests with the Minister for the Environment, Community and Local Government.

The Deputy will appreciate that, generally speaking, details of the names of the chairperson, secretary and treasurer of such groups would be a matter for the groups themselves. However, if the Deputy has a concern in relation to a specific group, I would be glad to provide any further information that may be available to my Department.

Community & Voluntary Group in Galway City and County	Amount Paid since 2 June 2011
Coiste Forbartha an Mháma	€10,667
Óige na Gaeltachta	€6,041
Ionad Pobail Cill Chiaráin	€35,400
Coiste Pobail Chamuis	€20,749
Coiste Pobail an Tulaigh	€7,057
Ionad Tacaíochta Teaghlaigh Teo	€13,058
Comhar Chaomhán Teo	€8,340
Coiste Spreagadh na nAosach	€30,709
Coiste Pobail na bhForbacha	€4,182
Ionad Fóillíochta Bhaile Chláir	€10,000
Coiste Forbartha Chorr na Móna	€32,987
Comhairle Chonnachta	€32,721
Comhairle Chonnachta	€82,637
Óige na Gaeltachta	€7,566
Acadamh na hOllscolaíochta Gaeilge	€3,000
An Gaelacadamh	€146,190
Comhlacht Forbartha an Spidéil	€9,261
Fibín Teo	€9,008
Comhairle Chonnachta	€32,721
Campa Sacair Chumann Sacair Chois Fharraige	€950
Campa Saoire Chois Fharraige	€21,450
Campa Spóirt Dhúiche Sheoigheach	€3,150
Campa Samhraidh na Ceathrún Ruaidh	€1,700
Campa Samhraidh Liathróid Láimhe	€1,950
Campa Camógaíochta Chois Fharraige	€1,150
Campa Spraoi Leitir Mucú	€3,420
Campa Kayakadóireacht Inis Meáin	€500
Campa Snámh agus Tarrthála na Ceathrún Ruaidh	€9,300
Campa CLG an Cheathrú Rua	€5,050
Campa Samhraidh na Ceathrún Ruaidh	€1,350
Campa Camógaíochta Chois Fharraige	€2,500
Acadamh na hOllscolaíochta	€3,270
Comhar Chuigeal	€2,500
Campa Clár Críochnú Scoile	€400
Cumann Peile Micheál Breathnach	€7,775
Comhar Chuigeal	€5,800
Conradh na Gaeilge	€10,160
Campa Liathróid Láimhe An Cnoc	€950
Dréimire	€1,740
Campa Sacar an Cheathrú Rua	€2,600
Ionad Tacaíochta Teaghlaigh	€2,060
Muintearas	€7,159
Naíonra Dhúiche Sheoigheach	€1,350
Ógras	€1,000
Pléaráca Teo	€1,700
Seirbhís Spóirt Chonamara	€3,100
Sportlann Naomh Anna	€200
Taibhdhearc na Gaillimhe	€174,089
Gaillimh le Gaeilge	€66,000
Spleodar (Cúrsaí Samhraidh agus Imeachtaí don Óige) Orán Mór	€33,120
Druid Lane Theatre (Arts Capital Payment)	€37,227

209. Deputy Alan Farrell asked the Minister for Arts, Heritage and the Gaeltacht the increments made payable to public sector workers within his Department in the years 2010 and 2011; the increments due in 2012 in tabular form; and if he will make a statement on the matter. [38353/11]

Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan): As the Deputy will be aware, my Department was established on 2nd June 2011. The following table sets out the number and the annualised value of increments paid to staff in my Department from that date until end-2011, as well as those due for payment in 2012.

Period	No. of staff due increments in period (WTE)	Estimated annualised cost of increments
2 June — 30 Nov 2011	173.4	€236,374
1 Dec — 31 Dec 2011	14.5	€18,659
1 Jan — 31 Dec 2012	285.8	€401,163

Payment of increments to staff in my Department is subject to staff receiving a satisfactory rating through the Performance Management Development System.

210. Deputy Paul J. Connaughton asked the Minister for Arts, Heritage and the Gaeltacht if his attention has been drawn to the fact that there is widespread opposition to the proposal to transfer the fee simple and rights of turbary on plot Nos. 7, 17, 19, 25-33, 44-49, 52, on 10.307 hectares in the townland of Meelickmore, Barony of Dunmore, County Galway from the Irish Land Commission to the National Parks and Wildlife Service; if his further attention has been drawn to the fact that the transfer of fee simple only and subject to rights of turbary of plot Nos. 22, 23, 24 are also involved; if he is aware that the local landholders adjacent to this property tendered to purchase these bogs a number of years ago but were never notified of the result and urgently want this process to be stopped, particularly in view of the difficult circumstances that many bog owners now find themselves in across the country; and if he will make a statement on the matter. [38403/11]

Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan): I understand that it has been established practice for the Department of Agriculture, Food and the Marine to offer the opportunity to my Department from time to time to acquire land or turbary rights which it holds on former Land Commission sites, such as those referred to in the Deputy’s Question. As Minister, I consider that there is significant potential value for my Department in having access to such lands, most particularly in cases where the relocation of turf cutters affected by the requirement to cease the cutting of turf on Ireland’s 53 raised bog Special Areas of Conservation might be facilitated.

I would, of course, be happy to discuss with the Deputy any issues around the acquisition of the particular sites referred to, in the context of the overall efforts by my Department to meet the needs of turf cutters affected by the cessation requirements.

211. Deputy Michael McGrath asked the Minister for Arts, Heritage and the Gaeltacht the estimated cost to his Department of a 2% increase in the standard rate of VAT; and if he will make a statement on the matter. [38457/11]

[1042]Minister for Arts, Heritage and the Gaeltacht (Deputy Jimmy Deenihan): As my Department typically cannot reclaim VAT incurred on goods and services, it is not a requirement of my Department’s Financial Management System that VAT be recorded separately in all instances. It is not therefore possible to provide the estimate requested by the Deputy of the cost to my Department of a change in the standard rate of VAT.

212. Deputy Marcella Corcoran Kennedy asked the Minister for Arts, Heritage and the Gaeltacht the position regarding a grant application in respect of an organisation (details supplied); and if he will make a statement on the matter. [38844/11]

Minister of State at the Department of Arts, Heritage and the Gaeltacht (Deputy Dinny McGinley): An application for capital funding to provide for the proposed development referred to by the Deputy was submitted to my Department in October 2008. The proposed facility had an anticipated cost at that time of €800,000, of which some €450,000 related to construction costs. Having evaluated the project in the context of significant changes in available resources and competing priorities, the applicant was informed in June 2010 that my Department would not be in a position to provide capital funding towards the project. A similar response to a subsequent application submitted in May 2010 was also issued by my Department. In the context of the implementation of the 20-Year Strategy for the Irish Language 2010-2030 and, notwithstanding the merit of the project in terms of the provision of the proposed facilities, it is unlikely that my Department will be in a position to provide funding for this project in the foreseeable future.

213. Deputy Tom Fleming asked the Minister for Communications, Energy and Natural Resources if he is prepared to issue a policy decision, as allowed for under legislation, to eliminate the blockade in the establishment of a company (details supplied) in which a €500 million investment is at stake, involving the employment of 350 persons at the construction phase. [38879/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): I refer the Deputy to my reply to Question No. 49 of 29 November 2011.

This matter, currently under consideration by the Commission for Energy Regulation, is a highly complex regulatory question given not least the implications for gas and electricity business and domestic consumers. As I previously advised, the CER’s ongoing deliberative process in this regard is at a very advanced stage with a decision expected to be made in the next two months. There has been no change in the CER’s timeframes in this regard.

I would again make the point to the Deputy that the CER’s own process has been delayed by the formal complaint made by Shannon LNG to the EU Commission alleging that the options being considered in the CER’s consultation amount to unlawful State-Aid.

214. Deputy Brendan Griffin asked the Minister for Communications, Energy and Natural Resources the grants and amounts paid by him to community and voluntary groups in Galway city and county to date in 2011; and if he will list the chairperson, secretary and treasurer of each group that was a beneficiary of same. [38336/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): I can provide the Deputy with information in relation to the Warmer Homes and eInclusion [1043]Schemes. The Sustainable Energy Authority of Ireland (SEAI) administers Better Energy: Warmer Homes on behalf of my Department, which is delivered through a range of Community Based Organisations (CBOs), augmented by a panel of private contractors. The energy poverty strand of Better Energy aims to provide energy efficiency improvements to low-income homes unable to afford the cost of implementing such measures. This is enabling over 20,000 low-income homes to benefit from energy efficiency retrofit measures this year.

Grant support is provided to a CBO for delivery of energy efficiency retrofits to eligible fuel poor homes and is directly linked to delivery by a CBO in any given year. The following table outlines the drawdown to date for each CBO in Galway city and county.

Community Based Organisation	Meitheal Forbartha na Gaeltachta (Connemara) *	Forum Connemara	Galway Traveller Movement T/A First Class Insulation
Chairperson	N/A	Mary Gannon	Patsy Sweeney
Treasurer	N/A	Mary Gannon (Acting)	Clare Davey
Secretary	N/A	Yvonne Keane	Lisa McDonagh
Drawdown to 2/12/2011	€29,705.00	€62,885.91	€293,556.88

*Meitheal Forbartha na Gaeltachta (Connemara) liquidated since September 2011

Separately, my Department also provides grant assistance to community and voluntary sector organisations throughout Ireland to support projects providing basic Internet use training. The most recent scheme (BenefIT 3) awarded grants amounting to €1.6m to date in 2011. The training will be available at several locations including county Galway, between November 2011 and June 2012. Training is being provided through 19 Grantees involving over 200 organisations (National and local) in a wide variety of venues spanning approximately 700 locations.

While it is not possible at this stage to ascertain the precise amount of grant funds that pertain to Galway it is my understanding that 12 of the grantee organisations, listed in the following table, will be providing training throughout the County of Galway to approximately 1,560 people — this represents almost 4% of the total number of beneficiaries under the scheme. Further details on this scheme including the specific sum of grants awarded to organisations are available on my Department’s website at www.eInclusion.ie.

Organisations providing training under the (BenefIT 3) in County of Galway

Name
Active Retirement Ireland
Age Action Ireland
Ballyfermot IT Centre
Caring for Carers
Craol. Community Radio forum of Ireland
Dublin Employment Pact
ICS Skills
Ideas Institute (SIPTU)
Irish Congress of Trade Unions (ICTU)
Irish Internet Association
Irish Rural Link
National Learning Network

215. Deputy Alan Farrell asked the Minister for Communications, Energy and Natural Resources his reasons for legislating for geothermal energy; the main issues this Bill will tackle; when he expects the Bill to be published; and if he will make a statement on the matter. [38349/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): Geothermal energy is a new area of legislative endeavour which will create a legislative framework to facilitate the exploration for and development of geothermal energy resources. It will provide significant support to the geothermal energy sector with considerable security of tenure for potential investors. The Bill sets out an approach to the licensing of exploration for, and exploitation of, geothermal energy. It is modelled on the approach taken in respect of minerals exploration and development, but also deals with a range of ancillary issues such as entry onto land.

The general scheme of a Geothermal Energy Development Bill was published in July, 2010. It was also decided to publish the Regulatory Impact Assessment. Both these documents are available on my Department’s website. I would expect that the Bill will be published in 2012.

216. Deputy Alan Farrell asked the Minister for Communications, Energy and Natural Resources his reasons for legislating for offshore gas storage facilities; the main issues this Bill will tackle; when he expects the Bill to be published; and if he will make a statement on the matter. [38350/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): Natural gas plays a key role in Ireland’s economy and fuels around 60 per cent of national power generation. The Government is committed to actions to ensure security of gas supply and the delivery of essential and timely investments in Ireland’s energy infrastructure. It is also committed to continuing to actively encourage private sector interest in investing in gas storage. Offshore gas storage facilities can help provide more secure gas supplies for all consumers. Ireland’s dependence on natural gas combined with EU gas security of supply obligations make it an imperative that a regulatory framework be put in place that encourages the market to provide new gas storage.

Ireland’s sole offshore gas storage facility is operated in conjunction with commercial gas production activities at the South West Kinsale gas field. It is licensed under the petroleum production lease between the Minister and the company.

There is currently no legal mechanism to provide for Ministerial consent for the use of a depleted gas field as a solely stand-alone gas storage facility i.e. at a site where there is no gas production. Nor is there statutory basis to explicitly authorise stand-alone gas facilities in offshore geological features such as salt caverns. Given the growing market interest in exploring opportunities for offshore gas storage, it is timely to progress a legislative framework.

Legislation is required to regulate offshore gas storage as a stand-alone activity and thereby provide certainty to potential developers and to gas consumers. A legislative framework will provide the necessary signal to the market.

Following a consultation process undertaken earlier this year by my Department, the drafting of Heads of a Bill is currently under way. It is envisaged that the legislation will provide a regulatory regime for gas storage at offshore sites under the seabed, at sites where extraction activities are taking place, at depleted gas wells and at virgin sites.

[1045]In general terms, the regulatory regime will provide for the granting of exclusive rights over areas under the seabed for the purpose of gas storage and for the terms and conditions under which gas storage activities may be carried out.

Following the preparatory work now under way, I will be in a position to seek the approval of the Government for the drafting of the Bill in the first half of 2012 with a view to its publication later in the year.

217. Deputy Alan Farrell asked the Minister for Communications, Energy and Natural Resources the increments made payable to public sector workers within his Department in the years 2010 and 2011; the increments due in 2012 in tabular form; and if he will make a statement on the matter. [38355/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): In the time available, it has not been possible to compile the information requested by the Deputy.

Officials within my Department are continuing to compile the data relevant to the request and I will revert to the Deputy as soon as possible.

218. Deputy Michael McGrath asked the Minister for Communications, Energy and Natural Resources the estimated cost to his Department of a 2% increase in the standard rate of VAT; and if he will make a statement on the matter. [38459/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): As VAT is a tax on expenditure incurred it is not possible to accurately predict the effect of a 2% increase in the standard rate. However, based on my Department’s standard rate VAT cost for the last twelve month period, a 2% increase would result in an additional cost of €36,000 per annum.

219. Deputy Joe McHugh asked the Minister for Communications, Energy and Natural Resources if he will consider allowing angling clubs or volunteers to carry out some rehabilitation works on spawning beds in County Donegal rivers that are listed by him as closed; and if he will make a statement on the matter. [38477/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): I believe stakeholder involvement is crucial to ensure the conservation of our salmon stocks. In that context Inland Fisheries Ireland (IFI) operated a successful pilot scheme in 2011 whereby funds were made available to angling clubs and voluntary organisations for projects to facilitate the rehabilitation of salmon stocks. The scheme has proven to enhance habitat, knowledge and ultimately the angling and commercial fisheries in Ireland and I am pleased at its extension to 2012.

IFI launched the Salmon Conservation Scheme for 2012 on 2nd December. The scheme will facilitate the rehabilitation of salmon stocks giving priority to rivers below their conservation limit, which have the greatest prospect of recovery.

Application forms and full details of the scheme are available on www.fisheriesireland.ie or from any IFI office and completed applications must be returned by March 31st, 2012, following which evaluation will take place.

220. Deputy Dominic Hannigan asked the Minister for Communications, Energy and Natural Resources if there has been any discussions about the ESB extending their meter reading service to six times a year as opposed to the current four times a year with the additional two bills calculated on estimates; and if he will make a statement on the matter. [38531/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): ESB is an independent commercial State body and the matter referred to by the Deputy arises from ESB operational matters in which I have no function.

221. Deputy Robert Troy asked the Minister for Communications, Energy and Natural Resources if the Communications Regulator, ComReg, has estimated to him or his officials the amount of additional licence fee income that might be generated by lowering to the draft condition of 70% of population the coverage requirement under the new spectrum licences in the 800 MHz, 900 MHz and 1800 MHz bands. [38543/11]

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): The management of the radio spectrum is a statutory function of the Commission for Communications Regulation (ComReg) under the Communications Regulation Act 2002.

ComReg believes that the 70% of population coverage requirement is sufficient to ensure that cherry picking solely of high-density urban areas could not occur. It is also modest enough to avoid the duplication of build-out in low population density areas. While no estimate is available regarding the amount of extra licence fee income that might be generated by the draft condition of 70% of population, I am advised by ComReg that unnecessary duplication of build-out would incur additional costs for industry, would be inefficient, and could consequently impact on licence fee income.

ComReg has undertaken an extensive and comprehensive public consultation process on its proposals for the forthcoming spectrum auction and I expect that it has examined every aspect in great detail with a view to ensuring the maximum possible benefit for consumers, in accordance with ComReg’s statutory obligations. Details of ComReg’s proposals are available in ComReg’s latest published document “ComReg 11/60” and associated documents.

222. Deputy Clare Daly asked the Minister for the Environment, Community and Local Government if he has assigned funding for the Nevitt landfill, Lusk, County Dublin. [38562/11]

231. Deputy Brendan Ryan asked the Minister for the Environment, Community and Local Government the position regarding the proposed super dump (details supplied) in north County Dublin; if compulsory purchase orders will be issued before 14 December; and his views on the short, medium and long-term plans for the site. [38557/11]

233. Deputy Clare Daly asked the Minister for the Environment, Community and Local Government if he will confirm if Fingal County Council has requested him to re-examine the proposed major landfill at Nevitt, Lusk, County Dublin; and if he has made available funds for the acquisition of land through compulsory purchase order and to carry out the works necessary to develop the site. [38561/11]

[1047]Minister for the Environment, Community and Local Government (Deputy Phil Hogan): I propose to take Questions Nos. 222, 231 and 233 together.

Fingal County Council has brought the matter of the decision in relation to the proposed Nevitt landfill to the attention of my Department.

However, in accordance with the provisions of the Waste Management Acts, the preparation and adoption of a waste management plan, including matters in respect of infrastructure provision, are the statutory responsibility of the local authority or authorities concerned. Under section 60(3) of the Waste Management Act 1996, I am precluded from exercising any power or control in relation to the performance by a local authority, in particular circumstances, of a statutory function vested in it.

Financial arrangements and site plans in relation to proposed local authority waste infrastructure are primarily a matter for the relevant local authority or authorities, in this instance Fingal County Council.

In line with national policy, my Department does not provide capital funding for new heavy waste infrastructure, including landfills, and, accordingly I have not provided funds for the acquisition of land or for the development of the proposed Nevitt landfill.

223. Deputy Liam Twomey asked the Minister for the Environment, Community and Local Government if he will remove the obligation for a means test in view of the fact that it discourages elderly persons from applying for senior alert scheme alarms; and if he will make a statement on the matter. [38739/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): My Department manages the Seniors Alert Scheme which encourages and assists the community’s support for older people by means of a community-based grant scheme to improve the security of people over 65 years of age. The Scheme is administered by local community and voluntary groups with the support of my Department.

The Scheme is not means-tested. However Community and Voluntary groups are asked to determine whether persons who apply for the grant have the means to purchase the equipment without grant support. This is established before an application for the grant is made so as to ensure that the most vulnerable people that the Scheme wishes to facilitate are in a position to receive the grant.

224. Deputy Mattie McGrath asked the Minister for the Environment, Community and Local Government his views on the condition of the country’s roads in particular rural country roads that are being neglected by local authorities; his plans to ensure that these roads are not further neglected; his further views that the long term neglect of these roads will lead to increased cost to him and local authorities and have a devastating effect on local infrastructure and business; and if he will make a statement on the matter. [38311/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): Under the Roads Act 1993 the improvement and maintenance of regional and local roads is a matter for the relevant local authority and the Minister for Transport, Tourism & Sport. I have no function in this matter.

225. Deputy Brendan Griffin asked the Minister for the Environment, Community and Local Government the grants and amounts paid by him to community and voluntary groups in Galway city and county to date in 2011; and if he will list the chairperson, secretary and treasurer of each group that were beneficiaries of same. [38338/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): The table below details grants paid to Community and Voluntary groups in Galway city and county to date in 2011 from various programmes within my Department. Board membership of Community & Voluntary organisations is a matter for the organisations in question, and can be obtained directly from the groups — contact details for each of the groups is listed below.

Name of Organisation	Town	Contact No.	Amount paid in 2011	Purpose/Programme
Community Workers Co-operative	Tuam	091-755090	€23,899.60	Scheme for National Organisations
INCADDS — Irish National Council of Attention Deficit Hyperactive Disorder Support Groups	Claregalway	091-798266	€33,467.87	Scheme for National Organisations
National Federation of Voluntary Bodies Providing Services to People with Intellectual Disability	Oranmore	091-792316	€18,087.84	Scheme for National Organisations
National Traveller Womens’ Forum	Tuam	091-771509	€38,087.84	Scheme for National Organisations
Rape Crisis Network Ireland	Galway City	091-563676	€81,175.68	Scheme for National Organisations
Community Platform	Tuam	091-779030	€20,000	Social Partnership Funding Scheme
Galway Volunteer Centre	Galway City	091-539930	€105,070	Scheme to Support Volunteering
Active Retirement Aughrim	Aughrim, Ballinasloe	086-8893262	€537.40	Seniors Alert Scheme
Annaghdown C A	Annaghdown	091-791985	€891.90	Seniors Alert Scheme
Aonad F R C	Ballygar	090-6624484	€7,892.50	Seniors Alert Scheme
Ballinakill Active Age Club	Letterfrack	095-41064	€2,700.10	Seniors Alert Scheme
Ballindereen C A	Kilcolgan	091-796780	€825.50	Seniors Alert Scheme
Bullaun C A	Bullaun, Loughrea	091-841883	€932.20	Seniors Alert Scheme
Claregalway Carnmore Senior Citizen Comm	Claregalway	086-8500390	€6,074.50	Seniors Alert Scheme
Cregmore C A	Cregmore, Claregalway	087-2507457	€950.00	Seniors Alert Scheme
Galway Contact	Galway City	091-527581	€30,589.75	Seniors Alert Scheme
Glenamaddy Community Care Ltd	Glenamaddy	094-9659269	€1,921.00	Seniors Alert Scheme
Gort Neighbourhood Watch	Gort	087-2722218	€6,857.25	Seniors Alert Scheme
Inishmann Order of Malta	Aran Islands	099-73053	€6,960.00	Seniors Alert Scheme
Knocknacarra Active Retirement	Knocknacarra	091-522898	€4,486.40	Seniors Alert Scheme
Loughrea Lions Club	Loughrea	086-3651488	€7,195.00	Seniors Alert Scheme
Menlough C A	Mountbellew	0909-684797	€1,335.00	Seniors Alert Scheme
New Inn ICA	Ballinasloe	090-9675879	€515.00	Seniors Alert Scheme
Newcastle C A	Newcastle, Athenry	087-2701693	€840.50	Seniors Alert Scheme
Oughterard C A	Oughterard	087-2560913	€1,307.50	Seniors Alert Scheme
Solas F R C	Headford	093-36446	€23,901.40	Seniors Alert Scheme
SVDP Ballinasloe	Ballinasloe	090-9645707	€14,536.00	Seniors Alert Scheme
SVDP Tuam	Tuam	093-25222	€2,400.00	Seniors Alert Scheme
Tearmann Eanna Teo	Baile na hAbhann	091-505540	€1,271.50	Seniors Alert Scheme
Westside Age Inclusion Ltd	Galway City	091-589861	€11,421.50	Seniors Alert Scheme
Mervue Active Retirement	Mervue	091-756059	€74	Once-off Grants
Ballinalsoe GAA Club	Ballinasloe	091-509000	€3,415	RAPID — Sports Capital Grant
Galway City Council	Galway	091-536400	€11,000	RAPID
Galway City Council	Galway		€5,500	RAPID
Brothers of Charity Services	Renmore	091-721493	€5,000	Dormant Accounts
Westside Kickboxing Club	Galway		€300	Dormant Accounts
Ballybane Community Forum	Galway	091-768300	€339.40	Dormant Accounts
S.C.C.U.L. Enterprises Ltd	Galway	091-755825	€1,200	Dormant Accounts
S.C.C.U.L. Enterprises Ltd	Galway	091-755825	€500	Dormant Accounts
Western Traveller and Intercultural Development Ltd	Tuam	093-25456/ 25244	€1,900	Dormant Accounts
Ballinasloe Social Club	Ballinasloe	0909-644728	€324	Dormant Accounts
St Joseph’s College	Ballinasloe	0909-642504	€270	Dormant Accounts
COPE (Crisis Housing Caring Support) Ltd	Galway	091-778750	€8,880.70	Dormant Accounts
Galway Regional Youth Federation Ltd	Galway	091-561637	€21,000	Dormant Accounts
COPE (Crisis Housing Caring Support) Ltd	Galway	091-778750	€3,128	Dormant Accounts
Renmore Judo Club	Ballybane		€28,000	Dormant Accounts
Galway City Partnership Ltd	Galway	091-773466	€3,450	Dormant Accounts
Ballybane Community Centre Ltd	Ballybane	091-768300	€28,000	Dormant Accounts
Ballybane Comm. Forum	Ballybane	091-768300	€3,600	Dormant Accounts
Ballinfoile Mór RAPID Cttee	Galway		€800	Dormant Accounts
Western Traveller and Intercultural Development Ltd	Tuam	093-25456	€13,050	Dormant Accounts
St Joseph’s Garbally College	Ballinasloe	0909-642504	€460	Dormant Accounts
Ballinasloe Social Services Ltd	Ballinasloe	0909-643217	€2,374.70	Dormant Accounts
Clann Resource Centre, Oughterard Ltd	Oughterard		€2,700	Dormant Accounts
Crib na nÓg	An Cheathrú Rua		€3,150	Dormant Accounts
Portumna “Sign Out” Youth Company Ltd	Portumna		€3,150	Dormant Accounts
Forum Connemara	Connemara	095-41116	€473,686.73	Axes 3&4 Rural Development Programme (RDP)
Galway Rural Development (GRD)	All areas of Galway outside of Connemara and Gaeltacht areas	091-844335	€969,362.61	RDP*
Meitheal Forbartha na Gaeltachta (MFG)	Gaeltacht Areas of Galway (No longer in Business)	Contact DECLG	€178,975.04	RDP*
Comhar na nOileain	Galway Islands	099-75096	€380,632.49	RDP*
Galway RuralDevelopment Company	Galway	091-844335	€1,079,177.20	Core funding under LCDP Programme
Galway CityPartnership	Galway	091-773466	€1,082,275.17	Core funding under LCDP Programme
Forum Connemara	Connemara	095-41116	€291,170.25	Core funding under LCDP Programme
Comhar na nOileán	Galway Islands	099-75096	€483,848.19	Core funding under LCDP Programme
National TravellersWomen’s Forum	Tuam	091-771509	€105,136.50	Core funding under LCDP Programme
Connemara Radio	Connemara	095-41616	€115,311.00	Core funding under LCDP Programme
Tuam Community Development Project	Tuam	093-25340	€22,615.54	Core funding under LCDP Programme
Ballybane Mervue Community Development Project	Ballybane	091-773466	€4,119.00	Grant aid towards the cost of winding up the company
Na Calaí Community Development Project		091-844335	€1,197.90	Grant aid towards the cost of preparing the 2010 Audited Accounts

* Please note that under the Rural Development Programme the Department does not pay project promoters directly. It does so instead through the Local Action Groups contracted to deliver the Programme on behalf of the Department. It should also be noted that the Rural Development Programme does not cover Galway city.

226. Deputy Alan Farrell asked the Minister for the Environment, Community and Local Government the increments made payable to public sector workers within his Department in the years 2010 and 2011; the increments due in 2012 in tabular form; and if he will make a statement on the matter. [38358/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): The number of staff who received increments in 2010 was 593, with 367 due to receive increments before the end of 2011. These numbers reflect the reconfiguration of the Department following the formation of the Government in March 2011. The increments paid in 2010 and 2011 were in line with the approved rates of pay at the time as outlined on the websites of the Department of Finance and Department of Public Expenditure and Reform.

Once increments are paid on the CorePay system, it is not possible to extract historical increment data from the system on a global basis. Historic costs could be calculated manually on an individual basis but this would take a prohibitively long time to calculate.

[1051]In 2012, 324 staff are expected to receive increments at an estimated cost of €300,000.

227. Deputy Áine Collins asked the Minister for the Environment, Community and Local Government the number of applicants on the housing waiting list of each housing authority; and if he will make a statement on the matter. [38387/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): My Department does not hold information on the number of households on local authorities’ waiting lists. This figure continuously fluctuates as households are allocated housing and new households apply for housing support. Detailed information on the latest statutory assessment of housing need carried out in March 2011, including a breakdown by housing authority, is available on my Department’s website —www.environ.ie or on the Housing Agency’s website at www.housing.ie.

228. Deputy Paul J. Connaughton asked the Minister for the Environment, Community and Local Government if triple rinsing of containers prior to recycling is necessary; if there are any estimates on the amount of water lost in the process in view of the current volume of household recycling of plastic and cardboard containers; his plans to change the recommendation to single or double rinsing; and if he will make a statement on the matter. [38401/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): In line with the objectives of the National Hazardous Waste Management Plan 2008-2012 and certain requirements of the Waste Framework Directive (Directive 2008/98/EC of the European Parliament and of the Council dated 19 November 2008), measures to promote high quality recycling, such as the separate collection of waste where technically, environmentally and economically practicable, are to be welcomed. In this regard, both the Environmental Protection Agency (EPA) and my Department are satisfied that certain farm plastics such as high density polyethylene (HDPE) chemical containers (used pesticide containers) can, where collected in a manner similar to the current farm plastics scheme and subject to certain conditions, be collected for recycling. These conditions are set out in my Department’s circular letter No. WP16.10 of 19 May 2010 entitled National Hazardous Waste Management Plan — collection of other farm plastics, which is available on my Department’s website at www.environ.ie. One of the conditions is that the containers concerned should be triple rinsed before collection. Triple rinsing, where conducted effectively, should reduce the hazard associated with the containers (particularly where the original cap is refitted) to enable the material to be handled safely (while not necessarily rendering it non-hazardous). The circular letter does not refer to such containers in the context of household waste as no similar collection scheme exists in that sector.

Data on the level of water used in the rinsing process are not available but in view of the relatively small tonnage of such waste collected — less than 10 tonnes in 2010 — the amount of water involved is not considered to be significant.

229. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the estimated cost to his Department of a 2% increase in the standard rate of VAT; and if he will make a statement on the matter. [38462/11]

[1052]Minister for the Environment, Community and Local Government (Deputy Phil Hogan): In general, my Department cannot reclaim VAT incurred on goods and services. Accordingly, VAT is not required to be recorded separately in my Department’s financial management system and it is not possible to estimate the cost of an increase along the lines referred to in the Question.

230. Deputy Peadar Tóibín asked the Minister for the Environment, Community and Local Government if it is his intention to alter, edit or redevelop the national spatial strategy. [38508/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): The 2002 National Spatial Strategy (NSS) is a twenty-year planning framework designed to achieve a better balance of social, economic and physical development and population growth between regions, and it provides the spatial vision and principles for statutory regional planning guidelines across eight regions and for development plans at a local level. A comprehensive review of implementation of the NSS was undertaken during 2010, culminating in the publication in October 2010 of the NSS Update and Outlook Report (available at www.environ.ie). This report reaffirms the commitment to implementing long-term planning frameworks such as the NSS and identifies new priorities and objectives to deliver more consistent implementation at all levels, taking account of experience since 2002 and the new environmental, budgetary and economic challenges that we are currently facing. In particular, the 2010 Report identifies a series of actions in respect of:

better alignment and prioritisation of sectoral infrastructure investment,

improved governance at national, regional and local levels, and

the promotion of more sustainable patterns of development, both in rural and urban contexts, through more effective, evidence-based planning policies,

with the aim of maximising the role of NSS implementation in supporting overall economic recovery.

In addition, the adoption of updated Regional Planning Guidelines in 2010 for the twelve-year period to 2022 and the new legislative provisions to include core strategies in development plans, taking account of regional policies, targets and priorities, are further embedding the NSS principles into the forward-planning process, and should help to deliver more co-ordinated, coherent and sustainable planning outcomes.

My Department will as necessary consider the need for any further such review in the light of the current evolving economic circumstances and the beneficial deployment of the currently more constrained resources.

Question No. 231 answered with Question No. 222.

232. Deputy Pat Deering asked the Minister for the Environment, Community and Local Government the number of EU directives within his Department that have not been acted upon; if he will provide a list of same; and the deadlines on them. [38558/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): There is currently one EU Directive within my Department’s area of responsibility — Directive 2009/30/EC regarding the specification of petrol, diesel and gas-oil — which has certain pro[1053]visions still to be transposed into Irish law. With the exception of Article 1(5) of Directive 2009/30/EC, which provides for the insertion of Article 7a into Directive 98/70/EC regarding the quality of petrol and diesel fuels, the European Communities Act, 1972 (Environmental Specifications for Petrol, Diesel Fuels and Gas Oils for use by non-road mobile machinery, including inland waterway vessels, agricultural and forestry tractors, and recreational craft) Regulations 2011 and European Communities Act 1972 (Sulphur Content of Heavy Fuel Oil, Gas Oil, and Marine Fuels) (Amendment) Regulations 2011 transposed Directive 2009/30/EC into Irish law on 31 March 2011. I understand that there are ongoing discussions within the European Commission concerning comitology provisions and the methodology for calculating greenhouse gas emission reductions and I expect that transposition of Article 7a into Irish law will follow resolution of this matter.

In addition, some elements of Directive 2009/30/EC mirror similar provisions of Directive 2009/28/EC on the promotion of energy use from renewable resources, which falls within the remit of my colleague, the Minister for Communications, Energy and Natural Resources. Transposition of those provisions of the Directive are a matter for his Department.

My Department is currently preparing transposing regulations in respect of two Directives which are due to be transposed by the end of 2011. In respect of Directive 2009/126/EC of the European Parliament and of the Council of 21 October 2009 on Stage II petrol vapour recovery during re-fuelling of motor vehicles at service stations, my Department conducted a public consultation, during September and October 2011, on the proposed introduction of the Directive provisions and all submissions are currently being examined with a view to finalising and making the transposing Statutory Instrument later this month. I also expect to make the transposition regulations in the coming weeks in respect of Directive 2011/37/EU of 30 March 2011, amending Annex II to Directive 2000/53/EC of the European Parliament and of the Council on end-of-life vehicles.

Question No. 233 answered with Question No. 222.

234. Deputy Dessie Ellis asked the Minister for the Environment, Community and Local Government his views on development contribution schemes relating to lapsed or abandoned capital projects; and if he will make a statement on the matter. [38577/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): Section 48(12)(b) and (c) of the Planning and Development Acts 2000-2010 provide that where a local authority has not commenced specified works included in a special development contribution scheme within 5 years of the date of payment of the contribution, or the final instalment if the payment is phased, or have commenced but not completed the works within 7 years of the payment, or the final instalment if the payment is phased, or if the local authority decides not to proceed with the works or part thereof, the contribution must be refunded to the applicant together with any interest that may have accrued over the period while the contribution is held by the local authority.

A local authority is entitled where expenditure is incurred within the required period in respect of a portion of the proposed works to limit the refund of the amount of the contribution to the proposed works that have not been carried out.

235. Deputy Robert Dowds asked the Minister for the Environment, Community and Local [1054]Government the powers and functions undertaken by the Southern and Eastern Regional Assembly. [38581/11]

236. Deputy Robert Dowds asked the Minister for the Environment, Community and Local Government the costs involved in running the Southern and Eastern Regional Assembly. [38582/11]

237. Deputy Robert Dowds asked the Minister for the Environment, Community and Local Government if he will examine if it is worth maintaining the Southern and Eastern Regional Assembly; and if he will make a statement on the matter. [38583/11]

238. Deputy Robert Dowds asked the Minister for the Environment, Community and Local Government the powers and functions undertaken by the northern and western regional assembly. [38584/11]

239. Deputy Robert Dowds asked the Minister for the Environment, Community and Local Government the costs involved in running the northern and western regional assembly. [38585/11]

240. Deputy Robert Dowds asked the Minister for the Environment, Community and Local Government if it is worth maintaining the northern and western regional assembly; and if he will make a statement on the matter. [38586/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): I propose to take Questions Nos. 235 to 240, inclusive, together.

The Border, Midland and Western (BMW) Regional Assembly and the Southern and Eastern (S&E) Regional Assembly were established under the Local Government Act, 1991 (Regional Authorities) (Establishment) Order, 1999. The functions of Assemblies are set out comprehensively in that Order. Their principal activities relate to the management of regional operational programmes, which are part-funded by EU structural and cohesion funds.

The accounts of the Assemblies show that the total expenditure in 2010 was €3.438 million in case of the BMW Regional Assembly and €7.683 million in the case of the S&E Regional Assembly.

I refer to the reply to Question Nos. 24, 44, 42 and 122 on 30 November 2011 in which I indicated that I intend to bring proposals to Government in the New Year in relation to local government structures generally, including at regional level.

241. Deputy Joe Carey asked the Minister for the Environment, Community and Local Government the total funding available to Clare County Council for energy efficiency retrofits in council houses and the amounts claimed or drawn down by the council in 2011; and if he will make a statement on the matter. [38627/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): Under my Department’s Social Housing Investment Programme, local authorities are allocated capital funding each year in respect of a range of measures to improve the standard and overall quality of their social housing stock. The programme includes a retrofitting measure aimed at improving the energy efficiency of older apartments and houses by reducing heat loss through the fabric of the building and the installation of high-efficiency condensing boilers.

[1055]An allocation of €675,000 was provided to Clare County Council in respect of the programme for 2011. To date, some €340,471 of this has been paid to the Council. Further claims have been received from the Council and these are currently being examined in my Department with a view to payment shortly.

242. Deputy Brendan Griffin asked the Minister for the Environment, Community and Local Government his views on a matter regarding the non-principal private residence tax (details supplied); and if he will make a statement on the matter. [38635/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): The Local Government (Charges) Act 2009 broadened the revenue base of local authorities through the introduction of the charge on non-principal private residences. The charge is set at €200 and is being collected by local authorities. The Act places the onus on an owner of residential property to assess his or her liability to the charge on the liability date and, if liable, to declare that liability and to pay the charge in respect of that property by the due date.

The Act provides for the application of late payment fees of €20 in respect of each month or part of a month for which the charge remains unpaid after the due date. In addition, both the €200 charge and any accumulated late payment fees remain as a charge against the property concerned.

A person who does not pay a charge by the relevant payment date is liable to prosecution by the local authority to whom the payment is due under section 5 of the Act. A person guilty of an offence under section 5 is liable to a fine of €2,000 on summary conviction and to a fine not exceeding €100 per day that the offence is continued.

Section 9 of the Act places collection of the charge under the care and management of local authorities. It is therefore a matter for each individual local authority to utilise the provisions of the legislation, including data sharing with the Electricity Supply Board, Private Residential Tenancies Board and the Revenue Commissioners, in the context of any undeclared properties that may be identified. It is understood that local authorities are pursuing those who may have a liability, including those who paid a charge in a previous year, and initiating court proceedings, where it is considered appropriate.

243. Deputy Billy Kelleher asked the Minister for the Environment, Community and Local Government the persons who will be appointed for inspections of septic tanks and the qualifications that will be necessary; and if he will make a statement on the matter. [38734/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): On 3 November 2011 I published the Water Services (Amendment) Bill 2011 which will introduce a registration and risk-based inspection system for septic tanks and other on-site waste water treatment systems. The Bill provides that the Environmental Protection Agency will appoint persons for the purpose of carrying out inspections. Specific criteria regarding professional or technical qualifications and the completion of training courses will have to be met by those seeking appointment as inspectors. I will be specifying the criteria in Regulations to be made following enactment of the Bill. It will also be possible for appropriately qualified and trained local authority staff to be appointed as inspectors.

244. Deputy Patrick O’Donovan asked the Minister for the Environment, Community and [1056]Local Government if he has considered an option (details supplied) as an employment creating initiative; and if he will make a statement on the matter. [38792/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): The Rural Development Programme 2007-2013 (RDP) is divided into 4 Axes. Axis 1 deals with competitiveness of the agricultural sector, Axis 2 aims to improve the countryside and environment and the objectives of Axis 3 are to support the diversification of the rural economy and improve the quality of life in rural areas. Axis 4 or the LEADER Axis provides support for the use of a “bottom up” approach to development which ensures that local people are involved in the decision making thereby facilitating sustainable development in a more inclusive way. In Ireland the LEADER approach is used to implement Axis 3 measures.

A significant number of projects funded under the previous LEADER+ programme (2000-2006) and under the Diversification and Business Creation measures of the current RDP involve support for enterprise initiatives that add value to agri-food products. Basic Agricultural products are listed in Annex 1 to the EC Treaty and are commonly called Annex 1 products. Under the main Rural Development Regulation 1698/2005 support/grant aid for adding value to Annex 1 products is facilitated under Axis 1 of the programme. At the start of this year Ireland was notified by the European Commission that support/grant aid for adding value to agri-food products is not eligible under Axis 3 but rather under Axis 1 as detailed in the regulation. As a result of this, grant aid under Axis 3 of the RDP for this type of activity is currently suspended.

A significant part of enterprise activity in rural areas focuses on food and food- related businesses and the continued provision of support for these businesses is critical as we look to ways to generate employment in rural Ireland. I acknowledge the role these businesses play in the economy of rural Ireland and I am aware of the seriousness of this issue. My Department continues to work with the Department of Agriculture, Food and the Marine to seek a solution as soon as possible.

I am not in a position to make any decisions regarding additional funds for the types of project referred to at this time. Any such decisions will be made in the context of the overall budgetary situation in due course.

245. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government if he will clarify if the Deputy elected as Ceann Comhairle by Dáil Éireann must be re-elected in the constituency from which he or she was originally elected, or if he or she can move constituency; if he will elaborate on the rules that apply in the event of his or her constituency being abolished in the context of redrawn constituency boundaries; and if he will make a statement on the matter. [38799/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): Section 36 of the Electoral Act 1992 sets out the provisions regarding the re-election of the outgoing Ceann Comhairle.

Under the provisions of section 36, where the Dáil is dissolved and the Ceann Comhairle has not announced before the dissolution that he does not desire to become a member of the Dáil, he shall be deemed to be elected for the Dáil constituency for which he was a member immediately before the dissolution.

[1057]Where a revision of constituencies takes effect on the dissolution of the Dáil and there is a new constituency which consists of or includes the constituency for which he was a member, then he shall be deemed to be elected as a member of the Dáil for that constituency.

Where a revision of constituencies takes effect on the dissolution of the Dáil and the constituency for which the Ceann Comhairle was a member is divided between a number of new constituencies then he must make a declaration specifying a constituency for the purposes of his re-election. The constituency in respect of which he declares must include part of the constituency for which he was a member before the dissolution of the Dáil. Such a declaration must be made as soon as may be after the enactment of the legislation providing for the revision of constituencies or where a person becomes Ceann Comhairle after such legislation is enacted, the declaration should be made as soon as may be after the person becomes Ceann Comhairle.

246. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government if he will provide the funding allocated to each local authority from the local government fund in 2011 in tabular form; if he will outline the allocation rules that apply and if he can clarify if funding is distributed on a per capita basis; if not, the reason therefor; his views that this discriminates against urban areas; and if he will make a statement on the matter. [38800/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): I assume the Question refers to General Purpose Grants paid to local authorities from the Local Government Fund. General Purpose Grants are my contribution to meeting the difference between the cost to local authorities of providing a reasonable level of day to day services and the income available to them from local sources and from specific grants.

Local variations in expenditure and in income sources are an inherent feature of the local government system and reflect local circumstances, priorities and decisions of local authorities. General purpose grants from the Local Government Fund are structured to bring about equalisation, over time, so that each authority will have sufficient resources, either from central grants or from its local income base, to provide a reasonable level of day to day services to its customers. For the purposes of allocations, a range of factors is taken into account, including each local authority’s expenditure on, and income from, each service, and the overall amount of funding available for distribution.

It is a matter for each local authority to prioritise its spending, within the resources available to it, across the range of services it provides. Equally, local authorities must ensure full value for money for the resources invested, and seek the maximum efficiency across their operations. The 2011 general purpose grant payment in respect of each local authority is set out in the table. In addition, local authorities will retain some €85 million in pension related deductions in 2011 .

Local Authority	2011 payments
	€
Carlow County Council	9,319,519
Cavan County Council	15,381,808
Clare County Council	10,762,263
Cork County Council	36,381,937
Donegal County Council	33,570,767
Fingal County Council	22,472,627
D.Laoire/Rathdown Co Co	28,323,120
Galway County Council	30,405,607
Kerry County Council	20,660,244
Kildare County Council	21,604,877
Kilkenny County Council	16,189,481
Laois County Council	14,018,331
Leitrim County Council	12,629,306
Limerick County Council	19,427,980
Longford County Council	12,033,108
Louth County Council	9,976,131
Mayo County Council	29,685,902
Meath County Council	23,604,137
Monaghan County Council	12,746,531
Tipp NR County Council	15,235,676
Offaly County Council	13,035,084
Roscommon County Council	17,213,351
Sligo County Council	14,121,597
Sth Dublin County Council	18,087,797
Tipp SR County Council	18,860,749
Waterford County Council	19,345,029
Westmeath County Council	17,354,945
Wexford County Council	17,413,069
Wicklow County Council	15,847,851
Cork City Council	18,968,770
Dublin City Council	60,211,447
Galway City Council	6,440,990
Limerick City Council	8,204,778
Waterford City Council	5,486,422
Clonmel Borough Council	2,585,210
Drogheda Borough Council	3,524,508
Kilkenny Borough Council	1,391,511
Sligo Borough Council	2,313,539
Wexford Borough Council	1,948,097
Arklow Town Council	1,388,868
Athlone Town Council	1,424,138
Athy Town Council	628,010
Ballina Town Council	1,398,588
Ballinasloe Town Council	746,185
Birr Town Council	683,013
Bray Town Council	3,629,819
Buncrana Town Council	770,995
Bundoran Town Council	467,601
Carlow Town Council	1,464,060
Carrickmacross Town Council	512,215
Carrick-on-suir Town Council	994,816
Cashel Town Council	567,385
Castlebar Town Council	802,028
Castleblayney Town Council	397,300
Cavan Town Council	718,591
Clonakilty Town Council	521,171
Clones Town Council	510,103
Cobh Town Council	1,046,319
Dundalk Town Council	3,943,890
Dungarvan Town Council	778,635
Ennis Town Council	1,879,448
Enniscorthy Town Council	1,016,035
Fermoy Town Council	726,081
Kells Town Council	397,076
Killarney Town Council	1,447,614
Kilrush Town Council	533,658
Kinsale Town Council	344,812
Letterkenny Town Council	874,805
Listowel Town Council	617,445
Longford Town Council	960,046
Macroom Town Council	525,612
Mallow Town Council	951,776
Midleton Town Council	486,711
Monaghan Town Council	910,206
Naas Town Council	1,234,484
Navan Town Council	430,976
Nenagh Town Council	931,619
New Ross Town Council	857,575
Skibbereen Town Council	370,292
Templemore Town Council	554,945
Thurles Town Council	801,681
Tipperary Town Council	693,230
Tralee Town Council	2,404,057
Trim Town Council	468,025
Tullamore Town Council	1,016,077
Westport Town Council	672,286
Wicklow Town Council	1,320,599
Youghal Town Council	965,305
Total	704,570,302

247. Deputy Robert Troy asked the Minister for the Environment, Community and Local Government when he will bring the climate change Bill, as promised in the programme for Government, before the environment committee; and if it will be discussed before the UN talks on climate change in Durban. [38829/11]

[1060]Minister for the Environment, Community and Local Government (Deputy Phil Hogan): I refer to the reply to Question No. 8 of 30 November 2011 which sets out the position in this matter.

248. Deputy Colm Keaveney asked the Minister for the Environment, Community and Local Government if he will provide financial details for all local authorities in which budgets to deal with retrofitting and warmer homes initiatives that have been returned to the Exchequer as unspent. [38831/11]

This year, some €32 million was provided for the retrofitting measure and, to date, around €16 million of this has been paid to local authorities. A substantial number of payment claims from local authorities are being processed in my Department at present. It is not possible to indicate the outturn for the programme as a whole until all payment claims, including claims which are still awaited from local authorities, have been examined and deemed eligible for recoupment.

Details of Exchequer allocations to local authorities in 2011 for improving the social housing stock are set out in the following table:

Local Authority	Allocation
Carlow County Council	310,000
Cavan County Council	620,000
Clare County Council	675,000
Cork County Council	1,375,000
Cork City Council	1,840,000
DunLaoghaire/Rathdown County Council	875,000
Donegal County Council	1,090,000
Dublin City Council	5,500,000
Fingal County Council	925,000
Galway County Council	640,000
Galway City Council	450,000
Kerry County Council	1,275,000
Kildare County Council	700,000
Kilkenny County Council	425,000
Laois County Council	400,000
Leitrim County Council	360,000
Limerick County Council	2,425,000
Limerick City Council	1,150,000
Longford County Council	425,000
Louth County Council	880,000
Mayo County Council	745,000
Meath County Council	470,000
Monaghan County Council	315,100
North Tipperary County Council	593,000
Offaly County Council	375,000
Roscommon County Council	400,000
Sligo County Council	450,000
South Tipperary County Council	1,420,000
South Dublin County Council	2,050,000
Waterford County Council	350,000
Waterford City Council	600,000
Westmeath County Council	415,000
Wexford County Council	850,000
Wicklow County Council	905,000
Total	32,278,100

249. Deputy Thomas Pringle asked the Minister for the Environment, Community and Local Government in relation to the determination on 22 July 2011 pursuant to the provisions of the Foreshore Act 1933, as amended, to grant a foreshore licence in respect of development on the foreshore related to the Corrib gas pipeline; the person who decided on the conservation objectives; the way they were established and the person who carried out the appropriate assessment to allow for the environmental impact assessment; and if he will make a statement on the matter. [38886/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): As stated in the reply to Question Nos. 397 and 398 of 15 November 2011, I made a determination on 22 July 2011 pursuant to the provisions of the Foreshore Act, 1933 (as amended) to grant a foreshore licence to Shell E&P Ireland Limited, Statoil Exploration (Ireland) Limited and Vermilion Energy Ireland Limited in respect of development on the foreshore related to the Corrib Gas Pipeline. In accordance with Section 21A of the Foreshore Act, notice of the determination was published in Iris Oifigiuil, the Irish Independent and on my Department’s website on 26 July 2011.

I made this determination following the carrying out of an environmental impact assessment and appropriate assessment of the proposed development under domestic and EU law.

The setting of conservation objectives for European sites is a matter for my colleague the Minister for Arts, Heritage and the Gaeltacht.

Further information on the application and the decision making process may be foundon my Department’s website at: www.environ.ie/en/Foreshore/ApplicationsSubjecttoEIA/ ShellEPIrelandLtd5618/

250. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government if smoke alarms are a current requirement for houses rented from public funds; if not, if he intends to require such provision; and if he will make a statement on the matter. [38909/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): Minimum standards for rental accommodation are prescribed in the Housing (Standards for [1062]Rented Houses) Regulations 2008, as amended by the Housing (Standards for Rented Houses) (Amendment) Regulations 2009, made under section 18 of the Housing (Miscellaneous Provisions) Act 1992.

These Regulations specify requirements in relation to a range of matters, such as structural repair, sanitary facilities, heating, fire safety and ventilation to name a few. With very limited exemptions, the Regulations apply to local authority and voluntary housing units as well as private rented residential accommodation.

Article 11 of the 2008 Regulations specifies the requirement for fire safety in rented accommodation. It states that, subject to certain provisions, the house must contain a fire blanket and either a mains-wired smoke alarm or at least two 10-year self-contained battery-operated smoke alarms.

The Housing (Standards for Rented Houses) Regulations, 2008 came into effect in their entirety for all new lettings on 1 February 2009, with certain articles, namely 6, 7, and 8, being phased in over a four year period for existing tenancies. All landlords have a legal obligation to ensure that their rented properties comply with these Regulations and the responsibility for the enforcement of the Regulations rests with the relevant local authority.

251. Deputy Robert Troy asked the Minister for the Environment, Community and Local Government his plans to amend the Building Control Act 2007 as was previously initiated by the 30th Dáil and which had cross-party support at the time; and if he will make a statement on the matter. [38915/11]

Minister for the Environment, Community and Local Government (Deputy Phil Hogan): I have no plans to amend the Building Control Act 2007 along the lines suggested. I understand that the question refers to the Building Control (Amendment) Bill 2010 which was introduced as a Private Members Bill in the 30th Dail. This Bill has now lapsed.

252. Deputy Mattie McGrath asked the Minister for Justice and Equality the cost to the State of carrying out a post mortem; the grounds on which a post mortem is carried out; the reason it was necessary to carry out a post mortem on a 91 year old woman who had been in long-term care in a nursing home and subsequently hospitalised a week prior to her death; and if he will make a statement on the matter. [38315/11]

Minister for Justice and Equality (Deputy Alan Shatter): The Coroners Act 1962 (Fees and Expenses) Regulations 2009 (S.I. No. 155 of 2009) prescribe the fees and expenses payable for services provided under the Coroners Act, 1962. The fee payable to a person for performing a post-mortem or a special examination, including preparatory work, any tests required and subsequent report to the coroner is €321.40. The fee payable to a person for assisting at a post-mortem examination is, in the case of a pathology technician, €25.23.

It is in the public interest that an independent legal officer of the State, i.e. the relevant coroner, is empowered by statute to direct the conduct of a post-mortem examination of the body of a deceased person where a medical certificate as to cause of death is not procurable. Whilst no details regarding this case were given to me by the Deputy, I understand from the coroner concerned that the relevant medical practitioner was unable to furnish a clear cause of death. In the circumstances, the coroner was under a statutory duty pursuant to the Coroners Act 1962 to direct a post-mortem examination on the deceased.

[1063]The coroner has indicated that everything possible was done on behalf of the next of kin to alleviate the undoubted distress that sometimes affects next of kin when the body of their loved one is subjected to an autopsy. I should also add that the hospital concerned has a liaison officer who is available to next of kin to explain why an autopsy is necessary in circumstances where a medical certificate as to cause of death is not procurable.

253. Deputy Michael Healy-Rae asked the Minister for Justice and Equality in view of the fact that the Garda fleet is being systematically reduced as patrol cars reach the end of their life when cars with 300,000 km on the speedometer are withdrawn; if he will review this policy in the context of the current economic climate if it is deemed that the vehicle can continue service; if he will give this proposal serious consideration in view of the fact that we have so many stations that have no Garda vehicle; and if he will make a statement on the matter. [38273/11]

Minister for Justice and Equality (Deputy Alan Shatter): Decisions in relation to the deployment of Garda resources, including transport, are matters for the Garda Commissioner. I am informed by the Garda authorities that the allocation of Garda vehicles is monitored and reviewed on a continuous basis to ensure that Garda transport is deployed in such a manner as to ensure the delivery of an effective policing service throughout the country.

I am also advised by the Garda authorities that, for safety reasons in accordance with the recommendations of the relevant motor car manufacturers, Garda cars are decommissioned when the odometer reading reaches 300,000 kilometres.

254. Deputy Maureen O’Sullivan asked the Minister for Justice and Equality if he will provide the figures of those currently in prisons (details supplied) who were previously in industrial schools or other institutions and are presenting in prison with mental health issues; and the services they are offered to deal with these issues. [38276/11]

Minister for Justice and Equality (Deputy Alan Shatter): I have been informed by the Irish Prison Service that the information requested is not recorded. The Deputy may however be interested in my reply to Parliamentary Question No. 14 on Thursday 1st December, 2011 on the issue of mental illness in our prisons.

The prevalence of mental illness is significantly higher among prisoners compared to the general population and that the mental health problems suffered by prisoners range from mild to severe. There is a strong argument that persons with severe mental illnesses who are involved in minor offences should be diverted away from the criminal justice system and measures have been undertaken to progress such an approach. However if a serious crime such as a homicide is involved, the issue has to be addressed by the criminal justice system Furthermore we also have prisoners properly convicted and imprisoned for serious offences who may develop mental illness after their imprisonment. Depending on the nature and severity of that illness the question has to be determined, as with any illness, whether it can be appropriately treated in a prison environment or whether a transfer to a designated centre is required.

A study undertaken in 2003 by the National Forensic Mental Health Service found that there is an excess of those with severe mental illness in all parts of the Irish prison population. The report estimated that 3.7% of male committals, 7.5% of males on remand, 2.7% of sentenced males and 5.4% of female prisoners should be diverted to psychiatric services, while as many as 20% of male committals and 32% of female committals needed to be seen by a psychiatrist.

[1064]In 2006 the Expert Group on Mental Health Policy published its report “Vision for Change”. That report recognised the pivotal role of primary care in addressing the mental health needs of the population and noted that it is widely recognised that 90% of mental health problems can be dealt with in primary care without referral to a specialist mental health service. In each prison primary care is the model of care through which healthcare is delivered; it is the linchpin of the prison healthcare system and where a prisoner experiences a mental health issue the prison doctor is usually the first point of contact. The Central Mental Hospital National Forensic Mental Health Service provides 20 consultant led in-reach sessions weekly by arrangement at all Dublin prisons and also at Portlaoise and the Midlands Prisons. Specialist in-reach services are in place for consultant led mental health sessions in the remaining prisons.

The World Health Organisation has awarded a “Health in Prisons Best Practice Award 2011” to the recently opened High Support Unit in Mountjoy Prison. The High Support Unit is a 9 bed facility opened in the Medical Unit of Mountjoy Prison in December 2010. It provides expert, supportive, short term input for prisoners who are in an acutely disturbed phase of a mental illness or require increased observation for a physical ailment, which has attendant increased risks. It provides a more controlled and supportive environment for a vulnerable prisoner as a short term intervention. The Irish Prison Service are exploring the possibility of expanding on this initiative by opening similar Units in other prison institutions.

There are prisoners who should more properly be treated in some form of therapeutic environment. The Criminal Law (Insanity) Acts 2006 and 2010 provides for the transfer of prisoners to the Central Mental Hospital.

The existing arrangements do give rise to problems. An interdepartmental group has being designated to examine the issue of people with mental illness coming into the criminal justice system and this is in line with the recommendations of the Thornton Hall Review Group which were approved by Government last July. My officials are consulting with the Department of Health on the arrangements involved including the terms of reference and an announcement will be made shortly.

255. Deputy Patrick O’Donovan asked the Minister for Justice and Equality the number of anti-social behaviour orders that have been issued since their introduction; the number of warnings that have been issued under the same legislation to juveniles in the County Limerick Garda district. [38309/11]

Minister for Justice and Equality (Deputy Alan Shatter): Part 11 of the Criminal Justice Act 2006, which provides for civil proceedings in relation to anti-social behaviour by adults, was commenced on 1 January, 2007. Part 13 of the Act, which relates to anti-social behaviour by children, was commenced on 1 March, 2007. These provisions set out an incremental procedure for addressing anti-social behaviour by adults and children. With regard to children, these range from a warning from a member of An Garda Síochána, to a good behaviour contract involving the child and his or her parents or guardian, to referral to the Garda Juvenile Diversion Programme and finally to the making of a behaviour order by the Children Court. With regard to adults, they include a warning and the making of a civil order by the court.

I am informed by the Garda authorities that up to 30 November, 2011, 3,033 behaviour warnings were issued to adults and 1,974 to children. Fifteen good behaviour contracts were made in respect of a child. In addition, four civil orders (in respect of adults) and three behaviour orders (in respect of children) have been issued by the courts.

[1065]Up to 31 October, 2011, 238 behaviour warnings were issued to children in the Limerick Garda Division. Four good behaviour contracts were made in respect of a child, and two behaviour orders have been issued by the courts.

In setting up the regime in the Act the intention was that the different interventions would address the problem behaviour. If they succeeded, there would be no need to apply to the courts for an order. It is only if they failed to lead to a behaviour adjustment by the person in question, that a court order would be applied for.

256. Deputy Sandra McLellan asked the Minister for Justice and Equality if he will consider providing more information on the speeding fines issued to motorists for example proof of the exact speed the car was travelling in view of the fact that currently all that is given is the registration plate of the vehicle; and if he will make a statement on the matter. [38316/11]

Minister for Justice and Equality (Deputy Alan Shatter): I am informed by the Garda authorities that a fixed charge notice issued to a motorist for an alleged speeding offence contains information which includes the speed at which the motorist is alleged to have been driving, the speed limit it is alleged has been exceeded, a reference to the relevant statutory provisions, the identification mark (registration number) of the vehicle and the location, time and date of the alleged offence.

As the Deputy notes, the fixed charge notice is accompanied by an image of the registration number of the offending vehicle, which provides an opportunity to confirm the identity of the vehicle involved.

257. Deputy Brendan Griffin asked the Minister for Justice and Equality the grants and amounts paid by him to community and voluntary groups in Galway city and county to date in 2011; and if he will list the chairperson, secretary and treasurer of each group that were beneficiaries of same. [38343/11]</