Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

141. To ask the Minister for Finance if his attention has been drawn to the fact that some banks are charging interest on so-called Covid-19 mortgage breaks and that in some cases this will run into additional thousands of euro over the lifetime of a mortgage; his views on whether this is fair; the measures he is taking to stop this; and if he will make a statement on the matter. [11617/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I have been advised by the Central Bank of Ireland (the Central Bank) that they have been engaging closely with regulated entities on payment breaks during the pandemic period. Payment breaks are a significant support for borrowers and provide breathing space to help them address short-term liquidity constraints due to the impact of COVID-19.

A key focus has been to ensure that regulated entities act in a way that protects the best interests of borrowers and is in line with the relevant codes and regulatory requirements. A well-established and robust consumer protection framework is in place for mortgage customers in Ireland. 

Through ongoing engagement with sector representatives and firms, the Central Bank are working to ensure that affected borrowers are supported through this unprecedented period of stress. To that effect, the Central Bank has published its expectations for payment breaks in credit unions, banks and other firms. These correspondences are available in full on the Central Bank’s website. The Central Bank has clearly stated that it is essential that regulated firms take a pro-active and consumer-centric approach to all issues arising from COVID-19, an approach which I fully support.

Of particular importance is ensuring that customers are provided with sufficient information to understand how the payment break operates, the impact on their loan repayments and cost of credit, and how their case will be treated when the payment break ends. The Central Bank have set out their expectation to industry that at the end of the agreed payment break, customers should be given options to repay the outstanding balance including (i) repaying the loan within the remaining term, or (ii) extending the term of the loan. This choice should apply for all loans, including mortgages, and the impact of the options on the overall cost of credit and monthly repayments should be fully explained to the customer. Customers should also be allowed to make reduced payments during the payment break where they wish to do so. This recognises that the borrower circumstances may differ. It is therefore important that borrowers are presented with the options and information to allow them to make choices which best suit their own circumstances.

Where borrowers continue to experience financial difficulties at the end of the payment break, supports are available through the existing consumer protection framework, for example, the Code of Conduct on Mortgage Arrears 2013. Due regard must be given to the fact that each case of financial difficulty is unique and needs to be considered on its own merits. The Central Bank will ensure that lenders are operationally ready and prepared to engage with borrowers during, or at expiry of, the six-month payment break in order to identify whether or not the borrower requires further support, and if so, to consider appropriate and sustainable solutions, as soon as possible.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

143. To ask the Minister for Public Expenditure and Reform further to Parliamentary Question No. 120 of 3 June 2020, the options available for all private and public employees to defer annual leave entitlements until later in 2020 or into 2021 (details supplied); and if he will make a statement on the matter. [10595/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Guidance has been provided on this issue by my department to public service employers and is set out below.

In relation to private sector employees - this is be a matter for each individual employer and the unique contractual arrangements that are in place for their employees. It is a requirement under the Organisation of Working Time Act, 1997 that employees are facilitated to take their statutory minimum annual leave entitlement.

The COVID-19 Guidance on working arrangements and temporary assignments in the Civil and Public Service outlines frequently asked questions related to annual leave. The link to the Guidance can be found here

Due to the outbreak of COVID-19, in March of this year, a special arrangement was put in place to allow civil servants additional time to avail of their annual leave during the 2020/21 annual leave year.

The Guidance notes that although social distancing and COVID-19 is expected to continue for some time, it is important that employees are still using their annual leave entitlement. Taking a break from work is a chance to recover from the demands of work. Regular breaks from work have been shown to reduce ill health and overall absenteeism. Managers should ensure that their team members are availing of annual leave in a way that supports well-being, and also ensures that their team is supported to take their statutory minimum entitlement.

The guidance further notes that public service employers should facilitate requests for annual leave where possible so that once the crisis passes, organisations can meet increased demand without having to cater to a large volume of annual leave requests. Section 20 (1) of the Organisation of Working Time Act provides that the times at which annual leave is granted are determined by the employer. In that regard, the employer should have regard to the opportunities for rest and recreation available to the employee but also the need for the employee to reconcile work and any family responsibilities.

In addition, the guidance notes that if an employee wishes to cancel pre-booked leave (e.g. annual leave) this may be facilitated once it is in line with the normal rules applying in the relevant area of the public sector. Flexibility during this time, from both employers and employees, is advisable. This flexibility should be based on the individual circumstances of each case, with regard to balancing the needs of the business and the employees.

Patricia Ryan (Kildare South, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

144. To ask the Minister for Public Expenditure and Reform if a trial of a four-day working week will be introduced on a voluntary basis in Departments; and if he will make a statement on the matter. [10606/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The national campaign for a 4 day week relates to a significant change to working time in Ireland for the entire workforce in both the public and private sectors. In terms of introducing a four day week in the civil and public service there are significant considerations to be taken account of including potential impacts on service provision to the public and any additional costs to the Exchequer.

It is worth noting that the Civil Service is a leading employer in the field of flexible working. Approximately 17% of the Civil Service workforce avail of flexible work arrangements which includes work-sharing patterns and the shorter worker year scheme.