Written answers

Tuesday, 25 May 2010

Department of Social and Family Affairs

Social Welfare Code

2:30 pm

Photo of Michael D HigginsMichael D Higgins (Galway West, Labour)
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Question 62: To ask the Minister for Social Protection when he plans to amend the qualifying criteria for mortgage interest supplement. [21583/10]

Photo of Noel CoonanNoel Coonan (Tipperary North, Fine Gael)
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Question 64: To ask the Minister for Social Protection the details of his review of the mortgage interest supplement scheme; the changes that are envisaged under this review; if he will publish the report; and if he will make a statement on the matter. [21636/10]

Photo of Joe McHughJoe McHugh (Donegal North East, Fine Gael)
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Question 68: To ask the Minister for Social Protection his plans to amend the mortgage interest supplement scheme; if he will make revised guidelines publicly available; and if he will make a statement on the matter. [21678/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I propose to take Questions Nos. 62, 64 and 68 together.

There are currently just over 16,500 people in receipt of mortgage interest supplement, compared to 8,091 recipients in 2008. Expenditure for the year ending December 2009 was €60.7m; the estimate for 2010 is €63.9m. The mortgage interest supplement scheme is currently under review. The main purpose of this review is to examine how the scheme can best meet its objective of catering for those who require assistance on a short-term basis. The review group includes representatives from my Department, the Community Welfare Service, the Departments of Finance and Environment, Heritage and Local Government, together with a representative from the Office of the Financial Regulator.

As part of the initial review, guidelines on specific and immediate operational issues were drawn up and circulated to the community welfare officers. These guidelines are available on the Department's website at www.welfare.ie The group is examining trends in programme and administrative costs, the impact of the Financial Regulator's statutory Code of Practice on Mortgage Arrears and legislative and operational issues arising, including the cap on hours of employment. The review is also considering whether alternative approaches to achieving the scheme's objectives are warranted in the light of recent changes in the economic climate and the mortgage market.

More recently, the Government has established a broader and more comprehensive review of mortgage arrears and personal debt. The Mortgage Arrears and Personal Debt Review Group under the independent chairmanship of Mr. Hugh Cooney, comprises representatives from my own Department, the Departments of Finance, Taoiseach, Environment, Heritage and Local Government, Justice, Equality and Law Reform, and Communications, Energy and Natural Resources. In addition the Group has representatives from the Office of the Financial Regulator, the ESRI, the Irish Banking Federation, the Free Legal Advice Centre and the Law Reform Commission.

The terms of reference for the Group are based on the Renewed Programme for Government, with an emphasis on protecting the family home. They include a review of the statutory Code of Conduct on Mortgage Arrears and the recently agreed protocol between the Irish Bankers Federation and the Money Advice and Budgeting Service on debt default, with a view to expanding the options available for dealing with debt situations to avoid foreclosure. In addition, the Group is examining measures adopted in other jurisdictions and considering ways of expanding existing mortgage-support measures. I understand that the Group will make its report to the Minister for Finance by the end of June. The conclusions and recommendations from the review of the mortgage interest supplement scheme, which is currently being finalised, will inform the work of this group.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 63: To ask the Minister for Social Protection if he will give a commitment that he will not curtail eligibility for the lone parent payment in any way before a significant increase in the availability of education and training placements, child care provision and ultimately real job opportunities are brought into being and verified to exist in sufficient quantity. [21614/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Government is conscious that many lone parents will need access to education, training and enabling services such as childcare provision in order to acquire the skills they will need to gain employment. As outlined in my reply to Parliamentary Question No. 400 of 18 May, 2010, there are a wide range of education and training opportunities available through my Department, the Department of Education and Science and FÁS for lone parents to strengthen their qualifications and skills base and thus maximise their chances of meeting the requirements of the modern labour market and gaining employment.

Good progress has been made in relation to the provision of childcare. Government invested some €1 billion throughout the last decade, Early Childhood Care and Education year for pre-school children was recently introduced and the revised Community Childcare Subvention Scheme will be introduced in September, 2010, with a supplementary focus on labour activation. Accordingly, I will be progressing with the proposed changes to the One-Parent Family Payment in the forthcoming Social Welfare (Miscellaneous Provisions) Bill, 2010.

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