Written Answers Nos. 83-94
83. Deputy Michael McGrath asked the Minister for Finance the implications for Bank of Ireland’s activities in the United Kingdom, if that country is outside the European Economic Area; the proportion of Bank of Ireland's revenues which arise in the United Kingdom; and if he will make a statement on the matter. [19007/16]
View answerI can confirm for the Deputy that I have received the following response from Bank of Ireland:
"Bank of Ireland UK is an important part of the Group s business. Bank of Ireland's UK plc business model is resilient. The Bank is licenced and regulated in the UK by the Bank of England through the FCA and the PRA, and is strongly capitalised and well-funded in Sterling. Further information is available in the Bank of Ireland Annual Report 2015, the most recent full year results for the Group, including from Pg 48 to Pg 50 of that report."
For the benefit of the Deputy, I would also highlight Page 205 of the bank s annual report which sets out data relating to the individual operating segments of the bank for year ended 2015.
As per this data, total operating income for Retail UK was €715m which equated to 22% of total group operating income. I should also point out however, that additional operating income relating to other group activities in the UK was also included under the Corporate and Treasury segment but this was not separately disclosed.
The Bank of Ireland Annual Report can be found at the following link: https://investorrelations.bankofireland.com//wp-content/assets/BOI-Annual-Report-2015.pdf
84. Deputy Michael McGrath asked the Minister for Finance the implications for Permanent TSB's activities in the United Kingdom if that country is outside the European Economic Area; the proportion of Permanent TSB's revenues that arise in the United Kingdom; and if he will make a statement on the matter. [19008/16]
View answerPermanent TSB (" PTSB") has informed me that it no longer transacts new business in the UK and has been deleveraging its non-core UK based mortgage business. It has made significant progress in this regard, having sold GBP £2.5bn of UK Mortgages in 2015 in conjunction with its UK mortgage servicing platform, Capital Home Loans Limited ("CHL"). PTSB owns a further GBP £2.5bn (as at 31 May 2016) of UK Mortgages which it also considers to be non-core and which it intends to deleverage. PTSB has funding arrangements in place to manage currency risk, with approximately 80% of the Group's GBP assets being directly funded in GBP.
Of PTSB's interest income for the last six months of 2015 approximately 10% was generated by the residual UK mortgage portfolio. Further detail on PTSB's UK portfolio is available in the Permanent TSB 2015 Annual Report.
85. Deputy Michael McGrath asked the Minister for Finance if the Strategic Banking Corporation of Ireland can accelerate its lending activities, focusing in particular on assisting small and medium-sized enterprises exporting to the United Kingdom; and if he will make a statement on the matter. [19009/16]
View answerThe Strategic Banking Corporation of Ireland (SBCI) began lending in March 2015. Its goal is to increase the availability of funding to SMEs, at a lower cost and on more flexible terms, than has been available in recent times on the Irish Market. The SBCI channels its funds through lending partners known as on-lenders. The SBCI currently has three bank and three non-bank on-lending partners.
To the end of December 2015, in its first nine months of operation, the SBCI has lent almost €172 million to c.4,600 SMEs, with broad coverage across various business sectors and regions. The SBCI publishes results biannually and will publish results for the first half of this year in July 2016.
The level of lending to SMEs is to a large degree driven by market demand, and the SBCI is engaged with a range of potential new on-lenders to broaden its distribution capability and market coverage. In doing so, the SBCI is seeking to deliver a wide variety of types of funding including those that support export orientated SMEs.
The SBCI will announce a new on-lender in the coming week, who will use SBCI funds to provide working capital finance products to the Irish SME market. Discussions are progressing well with additional on-lenders, and it is expected that further announcements may be made in the coming months.
It may also interest the Deputy to note that an interagency Export Finance Working Group with membership drawn from my Department, the Department of Jobs, Enterprise & Innovation, Enterprise Ireland, ISIF and the SBCI is currently progressing the development of a pilot financial product that would support the exporting activity of Irish SMEs.
In relation to the UK Referendum on membership of the EU, my officials met with multiple stakeholders, including the banks, to discuss preparatory actions for the outcome to the Referendum. I understand that banks have put in place resources to support their SME customers who could be affected including:
- Dedicated information resources on Brexit (i.e. teleconferences, websites, questions and answers documents);
- Daily market commentaries distributed to SMEs; and
- Additional treasury and support staff to answer customer queries.
Following the outcome of the UK Referendum on membership of the EU, I expect that the banking sector will:
- Continue their high levels of customer engagement, particularly in relation to treasury and foreign exchange matters;
- Engage directly with Enterprise Ireland in relation to supporting exporting SMEs; and
- Make available finance to viable business cases to support SMEs entering new export markets outside the UK.
Intensive contacts will continue between State bodies and the banks so as to respond to developments in the coming weeks and months. Indeed, the Heads of Business Banking in AIB, Bank of Ireland and Ulster Bank have met with the Board of Enterprise Ireland to discuss the potential impact of Brexit on exporters and SMEs.
86. Deputy Michael McGrath asked the Minister for Finance the projected change in tax revenue in 2018 and 2019 arising from the British referendum result; and if he will make a statement on the matter. [19012/16]
View answerAs set out in the macroeconomic assessment of a UK decision to leave the European Union in the Summer Economic Statement 2016, there will be an adverse impact on the growth outlook. However, with regard to the tax revenue forecasts for 2018 and 2019, as the Deputy will appreciate, at this point, it is far too early to speculate on the potential impacts. My Department's next official forecasts will be in October in the context of the Budget. These will set out updated estimates of economic growth, the public finances and fiscal space.
87. Deputy Michael McGrath asked the Minister for Finance if the International Financial Services Centre has the necessary physical infrastructure and other resources to benefit from any relocation of financial services funds from the United Kingdom; and if he will make a statement on the matter. [19014/16]
View answerThe Government's IFS 2020 strategy is a framework in which both public and private stakeholders will work to ensure the further growth and development of the international financial services (IFS) sector in Ireland. The IFS sector now employs about 38,000 people across over 400 companies with a 10,000 of those employed outside Dublin.
The strategy seeks to ensure that we protect the progress that has been made but to also to develop further as we recognise that we cannot stand still. In terms of vision for the Strategy we want Ireland to be recognised as a global location of choice for specialised international financial services, building on our strengths in talent, technology, innovation and excellent client service while focusing on capturing on new opportunities in a changing market and embracing the highest forms of governance.
The Government will continue to remain focused on the successful implementation of the IFS 2020 strategy and the development of a robust and sustainable financial services sector in Ireland. As we have always done, we will continue to market Ireland across the globe as the number one location for foreign direct investment.
In relation to the physical infrastructure, the capabilities and associated infrastructure to support international financial services activity now extends well beyond the original boundaries of the IFSC. For example, the funds industry employs people in over ten counties around Ireland. Other financial services companies and firms are also located throughout Dublin and in other centres around the country so there are a range of options for firms considering Ireland as a base.
Currently about 3.5 million square feet of office space is under construction. It should also be noted that of this 3.5 million square feet, at least 1 million square foot is pre-let with legal contracts exchanged with a further 600k square feet formally reserved.
Annual office take up last year was c. 2.6 million square feet and expected take up in 2016 estimated at around 2million square feet.
Figures provided by the IDA forecast that there is approximately 5.2 million square feet of grade A office space due for delivery by end of 2018.
We will continue, through the IDA, to promote the attractiveness of Ireland as a location of choice for investment and talent. This is based on our unique competitive strengths and our position as an English-speaking country in Europe.
Naturally, there may be new opportunities arising for Ireland in certain sectors, many of which already form part of the IDA's marketing strategy. We will, for example, continue to implement our clear strategy for driving growth in the financial services sector and we will maximise any opportunities that might arise.
My Department and the Central Bank had considered the potential financial regulatory resource implications of a UK vote to leave the EU. At present, the Central Bank Commission is satisfied that it has the resources required to regulate the financial sector. I am confident based on the Central Bank's ability to significantly expand its regulatory resources in the last seven years that it is capable of doing so again in order to properly supervise and regulate additional financial service activity that may relocate to Ireland.
88. Deputy Michael McGrath asked the Minister for Finance the number of approved retirement funds in operation; the value of funds held in these; and if he will make a statement on the matter. [19015/16]
View answer89. Deputy Michael McGrath asked the Minister for Finance the value of pension buy-out bonds in the Irish markets that may now qualify for approved retirement fund options; and if he will make a statement on the matter. [19016/16]
View answerI propose to take Questions Nos. 88 and 89 together.
Approved Retirement Funds (ARFs) are investment vehicles into which the proceeds of the pension savings of the self-employed, business owners and any individual with Defined Contribution pension arrangements may be invested at retirement, subject to conditions. Beneficial ownership of the assets in an ARF vests in the individual owner of the ARF and, among other conditions, the ARF must be managed by an independent Qualifying Fund Manager. The ARF option is an alternative to annuity purchase and essentially gives control over post-retirement income to those individuals who, generally, have borne the investment risk on their funds in the pension growth phase.
A Buy-out Bond, otherwise known as a Personal Retirement Bond, is a single premium pension policy into which an existing pension fund or the cash value of an accrued pension benefit can be transferred from a Defined Contribution (DC) or Defined Benefit (DB) occupational pension scheme. Buy-out Bonds are generally effected by the trustees of a scheme on behalf of a scheme member when the scheme member is leaving the employment of the scheme-sponsor or when the scheme is being wound-up, in lieu of providing the member with a preserved retirement benefit under the scheme. They are also availed of in circumstances where the scheme member's pension entitlements are being split under the terms of a pension adjustment order. Buy-out Bonds are usually provided and administered by life assurance companies.
There is no requirement on Qualifying Fund Managers or on life assurance companies to provide my Department or the Revenue Commissioners with detailed data of the kind requested in the questions in relation to ARFs or Buy-Out Bonds. I am, therefore, not in a position to supply the Deputy with information on the current numbers or values of such products.
I am assuming that the questions raised by the Deputy have been prompted by the change which I announced last week whereby the holders of Buy-out Bonds whose funds originate from DB schemes will from now on have access to the ARF option. Buy-out Bonds whose transfer values originate from DB schemes have not had access to the ARF option up to now and the only option available to the holder of a Bond in those circumstances has been to purchase a pension annuity with the remaining funds in the Bond (after taking the permissible tax-free retirement lump sum). Buy-out Bonds are DC pension products, however, and whether funded originally from DB or DC pension schemes, the holders of such Bonds bear the investment risk on their funds in the same way as holders of other DC pension savings who would have access to the ARF option as well as the annuity purchase option at retirement.
The ARF option is not available to the main benefits paid from DB pension schemes, generally, since it was never intended or considered a necessary requirement for such schemes which pay out a specified pension benefit. This position remains unchanged.
My decision to change the policy on ARF access for the holders of Buy-out Bonds whose funds originate from DB schemes has been particularly informed by the increasing frequency over recent years of the wind-up of DB pension schemes, with the members of such schemes having no choice in many cases but to accept a transfer to a Buy-out Bond and inevitable annuity purchase on retirement. The policy change will be of particular benefit to individuals in this situation. The Deputy should note that there is no Exchequer cost involved as a result of this change.
90. Deputy John Paul Phelan asked the Minister for Education and Skills the way a new action plan will affect a school from applying for Delivering Equality of Opportunity in Schools status under proposals from his Department's action plans for disadvantage; and if he will make a statement on the matter. [18837/16]
View answerAs the Deputy is aware, the review of the DEIS programme is currently underway and it is my intention that a New Action Plan Educational Inclusion will be published by the end of this year. The current DEIS Action Plan, was published in 2005 and now provides support to 836 schools serving a total of 169,500 pupils. The review is looking at all aspects of DEIS, including the identification process for the inclusion of schools in the programme, the range and impact of different elements of the School Support Programme, and the scope for increased integration of services provided by other Departments and agencies, in order to improve effectiveness. As part of the review, targeted measures in a number of key areas will be considered. They include: Supporting school leadership; Networks and clusters for DEIS teachers and schools; Teaching methodologies; Exploring ways in which the work of schools could be better integrated with other state supports within the community, and in consultation with Minister Zappone, making greater use of Home School Community Liaison.
I intend that innovative measures such as these, which are shown to work well in improving results for disadvantaged children and students, can form pilot schemes under a new schools support programme.
The number of additional schools to be included in the new programme will be determined by a new identification process for this purpose, which is currently in development and all schools will be assessed. Schools will not be required to make an application for access to the programme. Subject to Government approval, it is intended to begin to implement actions arising from an updated plan in the 2017/18 school year.
91. Deputy John Paul Phelan asked the Minister for Education and Skills when category 3 mechanical works will be approved for a school (details supplied) under the summer works scheme; and if he will make a statement on the matter. [18843/16]
View answerI wish to advise the Deputy that my Department is in receipt of a Category 3 application for mechanical works under the Summer Works Scheme (2016-2017) from the school to which he refers.
Valid SWS (2016-2017) applications from schools in respect of Categories 3 to 10 that were not reached under round one approvals announced on 28th April last, will, subject to the overall availability of funding, qualify to be assessed under future rounds of the Scheme. If this arises, the terms and conditions of the scheme as outlined in Circular Letter (0055/2015), which may be accessed on my Department's website, will continue to apply when allocating funding to such projects.
The application from the school in question is available to be considered in this context.
92. Deputy Michael Ring asked the Minister for Education and Skills if funding will be provided to a school (details supplied) under the emergency works scheme or summer works scheme; and if he will make a statement on the matter. [18846/16]
View answerI wish to advise the Deputy that my Department is in receipt of a Category 6 application for roof works under the Summer Works Scheme (2016-2017) from the school to which he refers. Valid SWS (2016-2017) applications from schools in respect of Categories 3 to 10 that were not reached under round one approvals announced on 28th April last, will, subject to the overall availability of funding, qualify to be assessed under future rounds of the Scheme. If this arises, the terms and conditions of the scheme as outlined in Circular Letter (0055/2015) which may be accessed on my Department's website, will continue to apply when allocating funding to such projects.
The SWS (2016-2017) application from the school, in question, is available to be considered in this context.
93. Deputy Danny Healy-Rae asked the Minister for Education and Skills his plans to create equal supplementary panel rights for fully qualified regulation three teachers with Teaching Council numbers (details supplied). [18851/16]
View answerThe supplementary panel application process for eligible fixed-term (temporary/substitute) and part-time teachers for the 2016/17 school year is set out in Circular 0058/2015 which is available on my Department's website.
Since 2006, the Teaching Council is the body with statutory responsibility and authority for regulation of the teaching profession, including the registration of teachers under the Teaching Council Acts 2001-2015. Under the Teaching Council [Registration] Regulations 2009, Regulation 3 (Montessori and other categories), graduates with certain Montessori qualifications (Level 8 on the National Framework of Qualifications) are allowed to be registered as teachers to teach in certain restricted settings in recognized schools. Lengthening and reconfiguring the programmes of initial teacher education is a key component of the National Strategy to Improve Literacy and Numeracy among Children and Young People 2011-2020. These changes were incorporated into the Teaching Council's Policy Paper on the Continuum of Teacher Education, which set the criteria for providers of initial teacher education.
The position is that, since the end of the 2012/13 school year, the Supplementary Special National Panel is being phased out and no new applications are being accepted. This decision by my Department reflects the wider availability of primary teachers who are qualified to work in all settings, which was not the case when this panel was originally set up.
Since 2012, the Teaching Council has responsibility for determining policy, procedures and criteria for the induction and probation of newly qualified teachers. Droichead which is the enhanced model of induction for Newly Qualified Teachers (NQTs) developed by the Council is being phased in at present and will be the only recognised route of induction for all new teachers from September 2018. In the meantime, NQTs in mainstream settings may complete probation through external evaluation conducted by my Department's inspectors. However, completion of the induction/probation process in special education settings can only be achieved through the Droichead process. Arrangements for the Supplementary Panel will be reviewed with the relevant education stakeholders later this year to determine what adjustment, if any, is required for the 2017/18 school year.
94. Deputy Michael Ring asked the Minister for Education and Skills if he will review the criteria for special needs assistants, SNA, so that children with high functioning autism who may have difficulty with sensory and audio processing and difficulty with social skills can obtain SNA help in order to reach their full potential; and if he will make a statement on the matter. [18856/16]
View answerI wish to advise the Deputy that the National Council for Special Education (NCSE) through its network of local Special Educational Needs Organisers (SENOs) is responsible for processing applications from schools for special needs assistants (SNA) supports. The NCSE operates within my Department's criteria in making recommendations for support.
The criteria for the provision of SNA support are set out in my Department's Circular 0030/2014, which is available on my Department's website at www.education.ie.
The Circular states that the purpose of the SNA scheme is to provide schools with additional adult support staff who can assist children with special educational needs who also have additional and significant care needs.
The scheme provides for the allocation of a quantum of SNA support to schools, taking into account the assessed care needs of individual children with disabilities, or severe medical needs. The scheme is not limited only to children who have been assessed as having specified categories of disability.
DES Circular 30/2014 provides that SNA support may be allocated, where necessary, to provide pupils with assistance with severe communication difficulties, including enabling curriculum access for pupils with physical disabilities or sensory needs and those with significant, and identified social and emotional difficulties. Schools may therefore make applications for SNA support to the NCSE for children who have assessed significant care needs which fulfil such criteria. Schools who wish to make applications for SNA support should apply to the NCSE.
All schools have the contact details of their local SENO, while parents may also contact their local SENO directly to discuss their child's special educational needs, using the contact details available the NCSE website www.ncse.ie.
I am asking the NCSE to undertake a comprehensive assessment of the SNA scheme in order to provide better outcomes for students with special needs and to ensure that we are making the best additional investment for children with special educational needs.
