Written Answers Nos. 108-128
108. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the extent to which new trading links continue to be established globally; the extent to which it is expected that Ireland can benefit from such developments in the future; and if she will make a statement on the matter. [33506/17]
Amharc ar fhreagraNew trading links continue to be established globally at a fast pace. In recent years, technological innovation, the digitisation of trade and geopolitical changes have all impacted on how the world trades. While the global economic environment has always been dynamic, it could be argued that change is happening at a faster pace than ever before.
The EU's suite of Free Trade Agreements with third countries is helping to open new markets, break down trade barriers and create new opportunities for Irish firms. There are some currently some twenty EU trade deals at different stages of negotiation. These Agreements are particularly important to SMES to enable them to internationalise and grow exports.
Ireland, as one of the world's most open, export-based economies, relies on continued open access to international markets for our economic growth. The combination of export-led growth and foreign direct investment has transformed the Irish economy over recent decades. The more we trade, the more jobs we support and the better our living standards.
The outstanding successes of our trade policy to date are evident. Exports are at a record high of an estimated €240 billion this year. Foreign Direct investment is also at a record high. IDA companies created nearly 19,000 new jobs in 2016 across a range of sectors, with every region of Ireland benefiting. Overall, unemployment is now down to 6.3%.
In March, the Government launched 'Ireland Connected, Trading and Investing in a Dynamic World'. This is a cohesive, whole-of-government Strategy, which sets out ambitious targets for Ireland's exports, foreign direct investment, tourism and international education. The Strategy details Ireland's response to the current highly dynamic global environment, and how we will meet these challenges.
As part of the Strategy, we aim to increase our indigenous exports by Enterprise Ireland supported companies, including food, to reach €26 billion by 2020. Over the same period, we aim to secure 900 new foreign direct investments. We will also support geographic market diversification, so that Irish owned exports to non-UK markets increase by 50%, while maintaining exports of at least €7.5 billion to the UK. These targets reaffirm that we are an outward-looking country, strongly committed to international trade and to adapting to the changing international environment, including the challenges and opportunities presented by Brexit.
109. Deputy Eamon Scanlon asked the Tánaiste and Minister for Jobs, Enterprise and Innovation her plans to provide serviced and zoned industrial land suitable for foreign direct investment in Sligo (details supplied); and if she will make a statement on the matter. [33127/17]
Amharc ar fhreagraI understand the importance of the availability of suitable properties in attracting foreign direct investment to Ireland, including to County Sligo.
I am informed that IDA Ireland has eight hectares of available land at its Finisklin Business and Technology Park and that the Agency continues to bring this property to the attention of potential investors. In addition, I understand that the IDA also has a 31 hectare greenfield site in Oakfield in the same County. The planned layout of this site is subject to the construction of the Western Distributor Road. Sligo County Council has advised the Agency that this work will begin in Q4 2017. The construction of this road is necessary to provide access to the site and therefore increase its attractiveness for FDI.
110. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the actions taken by State agencies to make exporters aware of the tariffs that would be payable in the event of a hard Brexit through WTO rules; and if she will make a statement on the matter. [33292/17]
Amharc ar fhreagraBrexit will undoubtedly have a range of impacts on firms. In terms of a hard Brexit and the application of WTO rules, one must remember that this represents a worst case scenario, which is an outcome whereby no trade deal is reached between the UK and EU. This is just one of a range of potential outcomes and not necessarily the one that we expect will result.
Ireland and our partners in the EU are working hard to achieve the best outcome for citizens and companies.
However, we must continue to prepare for whatever outcome emerges. My Department and the Enterprise Agencies are fully committed to supporting business and all of our stakeholders in this period of heightened uncertainty.
Enterprise Ireland and the LEOs are steadily working with companies to make sure that they are better prepared to respond to the challenges that Brexit will bring. These are the medium term, strategic actions that I know that companies are calling for – things like helping them to drive down costs, diversify into new markets and innovate in the way they do business.
Enterprise Ireland has been systematically engaging with its 1,500 clients that export to the UK and is providing information and guidance, market diversification support and competitiveness and market development support to help companies prepare for the future trading relationship with the UK.
Enterprise Ireland launched the 'Prepare for Brexit' campaign, which features the SME Scorecard tool. The Scorecard is an interactive online platform which can be used by all companies to self-assess their exposure to Brexit and areas they may need to consider preparing further on in the context of Brexit. EI has also introduced a ‘Be Prepared Grant’ which offers up to €5,000 in funding to support exporting client companies develop a Brexit Action Plan. The 'Prepare for Brexit' campaign aims to encourage more SMEs to prepare for Brexit and start putting in place detailed plans to mitigate risks and leverage opportunities that may arise, now that Brexit negotiations have begun.
My Department has funded a research project commissioned by InterTrade Ireland and undertaken by the ESRI to improve our understanding of the impact on cross-Border trade of different trade and tariff regimes which might be imposed following Brexit. The report based on this research has recently been published and provides useful data on the extent and concentration of cross-Border trade, including information on this trade by product and firm types and barriers to trade. It provides an evidence-based analysis of the factual, worst-case scenario, using robust data.
The application of WTO tariffs, post Brexit, in the absence of a wider UK-EU trade deal could have far reaching implications. With regard to North-South trade in particular, the impact could be significant, as one sixth of exports by SME in the Republic of Ireland go to Northern Ireland and two thirds of exports by Northern Irish SMEs go to the Republic of Ireland.
Of the 5,000 individual products that are listed with the WTO, the tariffs applied by the EU on non-members without a specific trade deal range from 0% to over 80%. As a result, a WTO arrangement would impact trade quite differently depending on the trade structure and this is why it is so important to provide a focused analysis of the cross-border trade flows.
Findings such as those contained in the ITI study, therefore, accentuate the need ultimately for a comprehensive Free Trade Agreement between the EU and the UK in the future – this is a shared ambition of the Irish Government, the EU and the UK.
My Department has provided financial assistance to InterTrade Ireland to provide a range of additional services to SMEs trading across the border, to help them to prepare for Brexit. This includes advising companies of the tariff applicable to individual products, which enables companies to plan accordingly. As the specific tariffs applicable to products even within broad product ranges can vary considerably, this is a valuable service for such exporters.
111. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the threats identified by her Department for importers in the context of Brexit; and if she will make a statement on the matter. [33299/17]
Amharc ar fhreagraIn advance of the Referendum my Department conducted a contingency risk assessment of the potential impacts of Brexit across policy areas of my Department. We have refined our analysis post-Referendum and we have been working with Agencies to put in place actions to mitigate risks and maximize opportunities.
More specifically, we have a number of streams of work underway which will address the threats to importers.
My Department has funded a research project commissioned by InterTrade Ireland to improve our understanding of the impact on cross-Border trade of different trade and tariff regimes which might be imposed following Brexit. This research provides useful data on the extent and concentration of cross border trade, including information on this trade by product and firm types and barriers to trade. A report based on this research was recently published while further, more detailed research on cross-Border trade continues.
My Department is also currently undertaking research to examine the implications for the most exposed enterprise sectors - in terms of trading and economic relationships - of a range of scenarios including that of the UK being outside of the European Single Market and Customs Union. This research will inform an assessment of the way in which Brexit will affect individual sectors of the economy. The wholesale and retails sector is the largest private sector employer in Ireland and is very exposed to the impact of Brexit, particularly in terms of imports. Reflecting this, the retail sector is one of the sectors included in this study.
As part of another major study, my Department is profiling the composition of trade and investment for Ireland and a range of EU Member States with the UK - this will provide an evidence base to inform Ireland's policy positions as part of the wider negotiation on the UK's future relationship with the EU. The impact on imports will be considered as part of this exercise.
As I mentioned, the retail sector is particularly impacted by Brexit – especially as a result of the large proportion of imports sourced through and from the UK. My Department convenes quarterly meetings of the Retail Consultation Forum to hear the sector's concerns and to work together on finding practical solutions to the key issues faced by the sector. Brexit has been placed as a standing item on the agenda of the Retail Forum. A range of retail representative bodies have been included in stakeholder engagements organised by my Brexit unit, and are included in the membership of the Department’s Enterprise Forum on Brexit and Global Challenges.
112. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the actions taken by her Department and State agencies to identify a positive regional spread to foreign direct investment which may arise as a result of Brexit; and if she will make a statement on the matter. [33303/17]
Amharc ar fhreagraThe Government remains committed to ensuring the most even possible spread of foreign direct investment (FDI), whether Brexit-related or otherwise, throughout the country. This is evidenced by the IDA's commitment - reaffirmed last week at the Agency's announcement of its mid-year results - of increasing FDI in every region of Ireland by 30% to 40% by 2019. Progress is being made towards that target and in 2016 over half of the jobs created by the IDA supported companies were outside Dublin. Projects announced by IDA client companies in 2017 also reflect a continuing trend of increased investment in regional Ireland by overseas firms.
The IDA, in its engagement with prospective new or expanding investors, always promotes the benefits of regional Ireland. This includes detailing the strengths and advantages that Ireland's regions may enjoy over the country's main urban areas. Available properties in the regions that may be suitable for investors are also regularly brought to the attention of overseas companies considering expanding or locating here.
It is important to remember that while the IDA does everything in its power to ensure an even spread of investments across Ireland, the ultimate decision on where to locate is always taken by the company itself. It is also the case that certain investors sometimes have a strong preference for our major urban areas on account of their own commercial or operational reasons.
113. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the number of Be Prepared grants issued by Enterprise Ireland; and if she will make a statement on the matter. [33308/17]
Amharc ar fhreagraEnterprise Ireland’s (EI) #PrepareforBrexit communications campaign includes a “Be Prepared Grant” that supports the costs of EI’s SME clients in preparing a plan to mitigate risks and optimise opportunities.
This grant can be used to help cover consultancy, travel and out-of-pocket expenses associated with researching the direction of their Brexit action plan. This might involve developing new strategies to maintain and grow existing UK exports, investigating the feasibility of diversifying to new markets and market segments; investment in innovation; improvement in operational competitiveness; or enhancement of strategic financial capability.
There have been a number of applications for the “Be Prepared Grant”. However, EI does not publish grant application information, which is standard practice for all grant approvals' processes. As grant approvals come on stream over the next couple of months, Enterprise Ireland will report them.
114. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the number of companies which have completed the Brexit scorecard; and if she will make a statement on the matter. [33309/17]
Amharc ar fhreagraThe “Brexit SME Scorecard” launched by Enterprise Ireland (EI) in March 2017, is a new interactive online platform which can be used by Irish companies to self-assess their exposure to Brexit.
To date 1,150 companies have used the EI Brexit Scorecard to help assess their level of preparedness for Brexit. This includes both EI clients and non-EI clients.
By completing the online questionnaire, the Brexit SME Scorecard will provide companies with an assessment of their preparedness under six key pillars - Business Strategy, Operations, Innovation, Sales and Marketing, Finance and People Management. The Scorecard then generates an immediate report which contains suggested actions, resources and information on events in order to prepare for Brexit.
The SME Scorecard is available to all companies looking to develop an action plan to help mitigate risks and leverage opportunities which may arise from Brexit.
For Enterprise Ireland clients, a ‘Be Prepared Grant’ has been introduced, which offers up to €5,000 in funding to support exporting client companies develop a Brexit Action Plan.
115. Deputy Stephen S. Donnelly asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the position regarding the development of sectorial response plans to Brexit; the publication date of these plans; and if she will make a statement on the matter. [33342/17]
Amharc ar fhreagraThe United Kingdom’s decision to leave the European Union will have a significant impact on our economy. It is essential that we understand these impacts, positive and negative, on the entire economy, across all policy areas of my Department, and at a sectoral level.
Following on from publication of the document setting out the Government's approach to the Brexit negotiations, work is underway across departments to prepare adaptive Sectoral Brexit Response Plans to mitigate emerging sectoral challenges. These plans will build on ongoing cross-Government research, analysis and consultations with stakeholders, and will encompass the following themes:
- Sustainable fiscal policies to ensure capacity to absorb and respond to economic shocks, not least from Brexit;
- Policies to make Irish enterprise more resilient, to diversify trade, to promote investment and innovation patterns, and to strengthen competitiveness;
- Prioritising policy measures and dedicating resources to protect jobs and businesses in the sectors and regions most affected by Brexit;
- Realising economic opportunities arising from Brexit, and helping businesses adjust to any new logistical or trade barriers arising;
- Making a strong case at EU level that Ireland will require support that recognises where Brexit represents a serious disturbance to the Irish economy.
Within my own Department, a risk assessment of the potential impacts of Brexit across policy areas which has fed into the national level assessment led by the Department of Taoiseach was conducted following the referendum result. My Department has since been working with enterprise development agencies to mitigate risks and maximize opportunities.
With regard to impacts at a sectoral level a range of work has been done or is underway including:
- There have been a number of useful studies published which set out the potential impacts of Brexit, including sectoral assessments (e.g. tourism, agri-food), and many of these are listed on merrionstreet.ie website;
- My Department published the findings of a survey of 1,045 SME business owners and has set out a number of actions being developed to support SMEs in responding to the challenges of Brexit.
- My Department funded a research project commissioned by InterTrade Ireland to improve our understanding of the impact on cross border trade of different trade and tariff regimes which might be imposed following Brexit. The research, conducted by ESRI, which was recently published provides useful data on the extent and concentration of cross border trade, including information on this trade by product and firm types and barriers to trade;
- My Department is currently undertaking research to examine the implications for the most exposed enterprise sectors - in terms of trading and economic relationships - of the UK being outside of the European Single Market and Customs Union. This research will inform an assessment of the way in which Brexit will affect individual sectors of the economy.
- In addition we are profiling the composition of trade and investment for Ireland and a range of EU Member States with the UK - this will provide an evidence base to inform Ireland's policy positions as part of the wider negotiation on the UK's future relationship with the EU.
Brexit and the changing global trading environment were significant considerations in drawing up the 2017 Action Plan for Jobs. This year’s plan is at the core of the government’s response to the huge challenge these pose for businesses - to make sure our enterprise base is resilient in the face of changes to come. This was reflected in the 10 percent increase secured by my Department in this year's capital allocation. Finally, we will also, in the context of Budget 2018, seek to secure the necessary additional resources required to put in place more supports for companies most impacted by Brexit.
116. Deputy Noel Grealish asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the powers that the Workplace Relations Commission has to request attendance at one of their hearings (details supplied); and if she will make a statement on the matter. [33359/17]
Amharc ar fhreagraThe Workplace Relations Commission (WRC) is an independent, statutory body which was established on 1st October 2015 under the Workplace Relations Act 2015. The WRC’s core services include the provision of early resolution, mediation, conciliation, facilitation and advisory services, adjudication on employment and equality complaints, the monitoring of employment conditions to ensure the compliance and enforcement of employment rights legislation, the provision of information, and the processing of employment agency and protection of young persons (employment) licences.
The WRC is independent in the exercise of its quasi-judicial function and I as Minister have no direct involvement in its day to day operations.
Adjudication Officers of the WRC are statutorily independent in their decision-making duties as they relate to adjudicating on complaints referred to them by the Director General of the WRC. The Adjudication Officer’s role is to hold a hearing where both parties are given an opportunity to be heard and to present any evidence relevant to the complaint. If a complainant does not attend a hearing, the Adjudication Officer may find that the complaint fails for want of prosecution. If the respondent does not attend the Adjudication Officer may proceed and make a decision based on the information and evidence available. Decisions of an Adjudication Officer may be appealed to the Labour Court within the legislative time limits prescribed.
Under Section 41(10) of the Workplace Relations Act 2015 an Adjudication Officer may require the attendance of a person to attend a hearing to give evidence or produce documentation relevant to his/her inquiry into a complaint under a broad suite of employment rights legislation. Any person who fails or refuses to comply with a notice from an Adjudication Officer or refuses to give evidence in proceedings or fails or refuses to produce any document to which the notice relates shall be guilty of an offence. Similarly, when investigating complaints under the Employment Equality Acts an Adjudication Officer has the power to compel a person to attend a hearing to give evidence or produce documentation relevant to his/her investigation in accordance with the provisions of Section 95 of this legislation.
It is unclear if the Deputy’s question relates to the adjudication process or the conciliation process within the WRC. With regard to the conciliation service, participation by parties is voluntary as are the outcomes of that process. The conciliation process is initiated by a referral of the dispute to the WRC by either or both parties involved. In serious disputes the Commission itself may, where no referral has been made, intervene and invite both parties concerned to conciliation. On receipt of a referral, other than a joint referral, the Conciliation Service of the Commission seeks the agreement of the other party to attend a conciliation conference but that service has no further role where such agreement is not forthcoming, or where its invitation has been declined.
117. Deputy John Curran asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the number of IDA client visits to Dublin mid west in 2015, 2016 and to date 2017, by month, in tabular form; and if she will make a statement on the matter. [33442/17]
Amharc ar fhreagraIDA Ireland collates data on client site visits on a county and quarterly basis. The Agency does not compile information on site visits to particular parts of individual counties.
The table sets out the number of site visits to Dublin by quarter from 2015 to 2017.
IDA Site Visits to Dublin 2015 to Q1 2017
|
Dublin |
Q1 |
Q2 |
Q3 |
Q4 |
Total |
|
2015 |
58 |
38 |
80 |
66 |
242 |
|
2016 |
57 |
88 |
59 |
80 |
284 |
|
2017 |
82 |
118. Deputy John Curran asked the Tánaiste and Minister for Jobs, Enterprise and Innovation the position regarding the Competition and Consumer Protection Commission examination of waste companies; if she has satisfied herself that there is diversity and competition within the waste collection market; and if she will make a statement on the matter. [33443/17]
Amharc ar fhreagraThe Competition and Consumer Protection Commission (CCPC) is the statutory independent body responsible for the enforcement of domestic and EU competition law in the State. Section 9 (5) of the Competition and Consumer Protection Act 2014 provides that the CCPC is independent in the performance of its functions. I, as Minister for Jobs, Enterprise and Innovation, have no direct function in such matters.
I am informed that the CCPC has engaged extensively both with the sector and with the Department of Communications, Climate Action and the Environment on its concerns regarding compliance with both competition and consumer protection legislation. I understand that the CCPC has formed these concerns based on a significant amount of contacts from consumers and anecdotal evidence. In particular, the CCPC has concerns about the extent of competition in some areas, where consumers have little, if any, choice of waste collector. Specifically with regard to anti-competitive behaviour, a number of allegations have been received but with insufficient evidence to merit the CCPC opening formal investigations.
The CCPC is being asked to report on the operation of the household waste collection market in order to inform the future development of national waste management policy before the end of 2017, which will provide an evidence base to establish a regulator to prevent price gouging.
119. Deputy Robert Troy asked the Minister for Finance the reason vehicles which are over ten years of age and pass the national car test can be refused insurance quotes from a large percentage of providers. [33214/17]
Amharc ar fhreagraAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of drivers or vehicles.
Policy in relation to the NCT lies with the Minister for Transport, Tourism and Sport. The NCT was introduced to comply with an EU Roadworthiness Testing Directive aimed at improving road safety and environmental protection. While the NCT is one component of having safer vehicles on our roads, every vehicle owner has a personal and legal responsibility to ensure that their vehicles are roadworthy and well maintained. The NCT is an inspection or general “health check” of what is visible and accessible on the day of the test and includes a check of the roadworthiness of such safety features, amongst others, as lighting, brakes and tyres.
The NCT is a minimum requirement of roadworthiness and is therefore not the only rating factor taken into account in the provision of motor insurance. Insurers will generally require that a car has a valid NCT in order to be covered. However, in making their individual decisions on whether to offer cover and what terms to apply, they will also use a combination of other rating factors, including the age of the driver, the type and age of car, the claims record and driving experience of the driver, the number of drivers, how the car is used, etc. My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience, meaning that in relation to the age of a car and the availability of cover, different insurance companies will use different age thresholds.
The Deputy should note that, according to the terms of the Declined Cases Agreement, the insurance market will not refuse to provide insurance to an individual seeking insurance if he/she has approached at least three insurers and has not been able to obtain cover from them. Insurance Ireland can be contacted in this regard at declined@insuranceireland.eu or 01-6761914 or 01-6761820.
120. Deputy Clare Daly asked the Minister for Finance further to Parliamentary Question No. 67 of 5 July 2017, the amount that will be paid to a company (details supplied) to produce the economic impact assessment of the help-to-buy scheme. [33126/17]
Amharc ar fhreagra121. Deputy Clare Daly asked the Minister for Finance his views on the decision to award the contract for the economic impact assessment of the help to buy scheme to a company (details supplied) in view of the fact that housing is not listed as one of that company's areas of expertise in public policy. [33138/17]
Amharc ar fhreagraI propose to take Questions Nos. 120 and 121 together.
My Department complies with all relevant public procurement legislation including EU regulations. The core principles of the EU procurement directives are transparency, equal treatment, open competition, and sound procedural management. They are designed to achieve a procurement market that is competitive, open, and well regulated.
A Request for Tenders (RFT) was issued on 23 February 2017. Three tenders were received by the Department on foot of the RFT. Applicants were required to meet the following criteria:
- Economic and financial standing; tenderers must be of good financial standing and demonstrate that they will be in a position to deliver a contract of this nature.
- Technical and professional ability including experience of the independent body/expert in analysing the residential property market in Ireland, experience of examining the economic effects of tax policy interventions and experience of conducting economic policy research with Government departments.
Indecon was awarded the contract for the review following the evaluation process undertaken by my officials and conducted in accordance with the relevant regulations.
The final amount payable by the Department of Finance upon the satisfactory completion of the review is dependent on allowable additional costs, if any, and so is not yet known. However, I can confirm to the Deputy that the base contract amount agreed by the Department and the contractor is consistent the Department's anticipated cost estimate, set out in paragraph 1.6 of the RFT (i.e. approximately €50,000 ex. VAT). The final amount paid to the contractor will be published in due course.
122. Deputy Catherine Murphy asked the Minister for Finance his plans to ring fence a percentage of moneys from betting duty and-or tax to be distributed to the relevant Department for the provision of problem gambling treatment and prevention services; and if he will make a statement on the matter. [33174/17]
Amharc ar fhreagraHypothecation is not a feature of the Irish tax system in general. I am not in favour of hypothecation of revenue receipts as it reduces the flexibility of the Government to prioritise and allocate funds as necessary at a particular time.
123. Deputy Niamh Smyth asked the Minister for Finance his views on correspondence (details supplied); the steps he is taking to address rising motor insurance costs; and if he will make a statement on the matter. [33180/17]
Amharc ar fhreagra124. Deputy Niamh Smyth asked the Minister for Finance if he will respond to matters raised in correspondence (details supplied); and if he will make a statement on the matter. [33181/17]
Amharc ar fhreagraI propose to take Questions Nos. 123 and 124 together.
As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to review individual cases nor to direct insurance companies as to the pricing level or terms or conditions that they should apply in particular cases.
However, I do accept that it is possible for the State to play a role in helping to stabilise the market and deal with factors contributing to the cost of insurance. For this reason, my predecessor as Minister for Finance, Deputy Michael Noonan, established the Cost of Insurance Working Group in 2016 in consultation with the Central Bank and other Departments and Agencies.
The initial focus of the Working Group was the issue of rising motor insurance costs and its Report on the Cost of Motor Insurance was published in January 2017. The Report makes 33 recommendations with 71 associated actions to be carried out in agreed timeframes, which are clearly set out in an Action Plan. 45 of these action points are due to be implemented by the end of this year with the remainder scheduled for completion before the conclusion of 2018.
There is a commitment within the Report that the Working Group will prepare quarterly updates on its progress and the first such update was published in early May.
My Department will publish the second quarterly update shortly. This update will again show the progress to date on the overall implementation of the recommendations, with a particular focus on the 17 action points which were due for completion in the second quarter of 2017.
I believe that the implementation of the Report on the Cost of Motor Insurance will make a difference to the pricing of insurance premiums over the next 18 months. I also believe that the Setanta judgment, by finding that MIBI is not liable to meet third party claims, removes a major uncertainty from industry, which I would expect to be reflected in pricing in the short to medium term.
In relation to the Deputy’s query about ability of insurers from other EU countries to compete in the Irish market, it should be noted that the EU framework allows for the freedom to provide services from one Member State into another throughout the Union. This is a key principle of the European Union and is availed of by a number of insurance firms established in Ireland in order to conduct business into other EU Member States, and by companies which are authorised elsewhere conducting business into the Irish market. This can be done either through:
- establishing a branch operation in the host country and thus conducting business on a 'freedom of establishment' (FOE) basis; or
- writing business from the home country (i.e. where authorised) into the host country on a 'freedom of services' (FOS) basis.
125. Deputy Eamon Scanlon asked the Minister for Finance the options available to homeowners and businesses in Leitrim village that are being refused flood insurance cover despite major drainage works and upgrades that have been carried out by Leitrim County Council in recent years following flooding in the village; if he will advise residents and businesses accordingly; and if he will make a statement on the matter. [33224/17]
Amharc ar fhreagraI am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses, and that is one of the reasons the Government has been prioritising investment in flood defences over the last number of years.
However, the provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. As Minister for Finance I have responsibility for the development of the legal framework governing financial regulation, and neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.
Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems. This in turn should lead to the increased availability of flood insurance. To achieve this aim, there is a focus on:
- prioritising spending on flood relief measures by the Office of Public Works (OPW) and relevant local authorities,
- development and implementation of plans by the OPW to implement flood relief schemes, and
- improving channels of communication between the OPW and the insurance industry in order to reach a better understanding about the provision of flood cover in marginal areas.
While it is not possible for me to comment in detail on individual cases without the full facts, Leitrim County Council has advised me that a number of works on flood relief in Leitrim village were completed in 2016 under the Severe Weather Allocation programme funded by the Department of Transport, Tourism and Sport. I understand these works include the installation of non-return flood valves, upgrade of the surface water system and the raising and repair of roads.
I am also informed by the OPW that Leitrim village is one of 300 Areas for Further Assessment included in OPW's Catchment Flood Risk Assessment and Management (CFRAM) Programme. I understand that a preferred option to deal with the risk of flooding has been identified following local consultation and that flood risk management plans are now being finalised.
Finally, you should be aware that a consumer can make a complaint to the Financial Services Ombudsman in relation to any dealings with a Financial Services or Insurance provider during which they feel they have been unfairly treated. In addition, individuals who are experiencing difficulty in obtaining flood insurance or believe that they are being treated unfairly may contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance.
126. Deputy Clare Daly asked the Minister for Finance further to Parliamentary Question No. 54 of 5 July 2017, if he will provide a copy of the compliance checks and reports to which he refers. [33269/17]
Amharc ar fhreagraAs previously indicated to the Deputy, Revenue carries out regular compliance checks on all lenders to ensure correct operation of the mortgage interest relief scheme. Additionally, all information in regard to the operation of the scheme is made available to the Comptroller & Auditor General for examination.
Revenue is constrained by Section 851A of the Taxes Consolidation Act 1997 from providing details of individual compliance checks on individual lenders but has now confirmed that all 2,687 issues raised in relation to the May compliance checks have been resolved.
127. Deputy Noel Rock asked the Minister for Finance if he will provide the excise returns to date in 2017, by category; and if he will make a statement on the matter. [33271/17]
Amharc ar fhreagra128. Deputy Noel Rock asked the Minister for Finance the estimated impact on excise duty receipts of the apparent practice of tobacco firms building up stocks in advance of the introduction of plain packaging; the impact this has had on Exchequer returns in 2016 and to date in 2017; when he expects excise receipts to return to normal; and if he will make a statement on the matter. [33272/17]
Amharc ar fhreagraI propose to take Questions Nos. 127 and 128 together.
I am informed by Revenue that the breakdown of the net Excise receipts by category for 2016 and the period January to June 2017 is as shown in the table. Please note that receipts shown for 2017 are provisional.
|
Net Excise Receipts |
2016 |
2017 |
|
(6 Mths.) |
||
|
€m |
€m |
|
|
Alcohol |
1,208 |
561 |
|
Tobacco |
1,098 |
257 |
|
Oils |
2,173 |
994 |
|
Carbon |
430 |
231 |
|
VRT |
814 |
522 |
|
Betting |
51 |
25 |
|
Licences |
22 |
5 |
|
Total |
5,796 |
2,596 |
I am advised by Revenue that tobacco receipts in 2016 were €1,098 million which is €15.4 million ahead of the receipts in 2015. The increased receipts in 2016 were in part due to the practice of tobacco firms building up stocks. This has resulted in lower clearances of stock and receipts for the first half of 2017.
Tobacco firms are presently building up stocks again in advance of the introduction of plain packaging. Tobacco products manufactured for retail sale in Ireland must comply with the standardised packaging requirements from 30 September 2017. However, products manufactured before this date can continue to be sold until 30 September 2018 without complying with standardised packaging requirements.
The result will be increased tobacco receipts in the second half of 2017 and, as a result, total tobacco receipts for 2017 are expected to be greater than the tobacco receipts in 2016.
