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Tuesday, 23 May 2023

Written Answers Nos. 211-227

Rail Network

Questions (212)

Danny Healy-Rae

Question:

212. Deputy Danny Healy-Rae asked the Minister for Transport to ensure that people can pay by cash when purchasing food and drinks from the catering trolley on the trains between Killarney and Dublin; and if he will make a statement on the matter. [24537/23]

View answer

Written answers

As the Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport.

The issue of the acceptance of payments in cash for catering services on board intercity services is an operational matter for Iarnród Éireann and I have therefore forwarded the Deputy's question to the company for direct reply.

Please advise my private office if you do not receive a response within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Electric Vehicles

Questions (213)

Paul McAuliffe

Question:

213. Deputy Paul McAuliffe asked the Minister for Transport if he will carry out a review of an electric charger grant application by a person (details supplied). [24546/23]

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Written answers

Home charging is the primary charging method for most Irish EV owners as it’s convenient and cheaper for the consumer as well as assisting in the overall management of the national grid. Over 80% of charging is expected to happen at home.

The Home Charger Grant Scheme provides a grant of up to €600 towards the installation cost of a domestic charge point for new and second-hand BEVs or PHEVs. As the grant acts as an incentive, the eligibility criteria clearly states that homeowners should not commence any work before the start date on the letter of offer, otherwise the expenditure is deemed ineligible and grant support will not be received.

Queries on individual cases should be directly to the SEAI for consideration.

Pension Provisions

Questions (214)

Richard Boyd Barrett

Question:

214. Deputy Richard Boyd Barrett asked the Minister for Transport if he can clarify (details supplied) in relation to the pension provision of CIÉ workers; and if he will make a statement on the matter. [24547/23]

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Written answers

As the Deputy may be aware, the CIÉ Group is actively engaged in introducing changes to their pension schemes aimed at rectifying the significant deficit in order to meet the statutory Minimum Funding Standard required by the Pensions Authority. The changes also aim to sustain the pension schemes into the long-term.

The Balance Sheet deficit at the end of 2021 for the two defined benefit pension schemes operated by CIÉ, namely the Regular Wages Scheme (“RWS”) and 1951 superannuation scheme (“1951 Scheme”), was €846m. Officials in my Department are actively engaging with CIÉ in relation to the 2022 end of year position and have been advised by CIÉ that these figures will be finalised in the coming weeks when the Scheme Actuary submits an Actuarial Funding Certificate and a Funding Standard Reserve Certificate to the Pensions Authority reflecting the updated Balance Sheet position.

In relation to CIE's Regular Wages Scheme (RWS), I signed three Statutory Instruments related to the RWS on 6th July 2022, with an operative date of 18th July 2022.

In regards to the 1951 Scheme, CIÉ has prepared and submitted a draft SI to give effect to Labour Court recommendations for the 1951 Scheme, as passed by ballot of trade union members in May 2021. This is being considered by my Department in conjunction with NewERA. The Deputy may also be aware that the rules governing the 1951 scheme are currently subject to ongoing legal proceedings before the Commercial Court. The Hearing commenced on 24 May 2022 for 4 days and the outcome from the Hearing is expected in the coming months.

Concerning pension increases for CIÉ pensioners, I understand that an increase for pensioners would only be possible when the Schemes are capable of sustaining such increases. Furthermore, any such proposal would be dependent on the advice of the Scheme Actuary at the time an increase is proposed, and is done in agreement with the Trustees of the Schemes.Accordingly, I have forwarded the Deputy's question to CIÉ for direct reply. Please advise my private office if you do not receive a reply within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Public Transport

Questions (215)

Seán Sherlock

Question:

215. Deputy Sean Sherlock asked the Minister for Transport in light of the apparent delays in introducing contactless next gen ticketing on public transport, if he will examine a QR Style scan system as outlined in (details supplied). [24609/23]

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Written answers

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has responsibility for the planning and development of public transport infrastructure, including ticketing and technology projects.

The Government gave Public Spending Code Decision Gate 2 approval to the BusConnects Next Generation Ticketing project in March 2022. This approval permitted the NTA to enter competitive dialogue with potential suppliers and develop the ticketing solution that will be rolled out as part of the BusConnects programme. In time, this solution will be put in place on other parts of the network.

The indicative timeline included in the programme preliminary business case considered by Government in March 2022 anticipated that Decision Gate 3 approval for Next Generation Ticketing would be sought during 2023. It is now expected that the NTA will submit this material to my Department in early 2024.

Noting the NTA's responsibility in the matter, I have referred the Deputy's question to the NTA for a direct reply. Please contact my private office if you do not receive a reply within 10 days.

A referred reply was forwarded to the Deputy under Standing Order 51

Cycling Facilities

Questions (216)

Alan Dillon

Question:

216. Deputy Alan Dillon asked the Minister for Transport to set out, in tabular form, the amounts invested nationally in each year from 2013 to 2022 in developing cycling infrastructure across Ireland; and if he will make a statement on the matter. [24610/23]

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Written answers

As Minister for Transport, I have responsibility for policy and overall funding in relation to Active Travel. Funding is administered through the National Transport Authority (NTA), who, in partnership with local authorities, have responsibility for the selection of specific projects in each local authority area and the allocation of the relevant funding.

Noting the role of the NTA in the matter, I have referred your question to that agency for a more detailed answer. If you do not receive a reply within 10 working days, please contact my private office.

Cycling Policy

Questions (217)

Alan Dillon

Question:

217. Deputy Alan Dillon asked the Minister for Transport to outline the measures his Department has introduced or plans to introduce during the lifetime of the current Government to increase the number of people travelling to work by bicycle; and if he will make a statement on the matter. [24611/23]

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Written answers

My Department is continuously exploring ways to encourage the uptake of cycling as a mode of transport. Our National Sustainable Mobility Policy examines the different behavioural change measures that can be explored to promote modal shift away from private car use and towards zero-emission transport modes such as walking, cycling and e-biking including for commuting to and from work.

My Department has invested a significantly increased level of funding in cycling infrastructure since the start of this Government's term in 2020. I firmly believe that further continued investment is required to ensure cycling is seen as a safe and attractive option for travelling to and from work.

In this regard, €290 million has been allocated by the Department of Transport to the National Transport Authority (NTA) in 2023 for Active Travel measures around the country. The NTA disperses this funding to all local authorities, works with them to identify walking and cycling projects and oversees their delivery. This investment will provide safe, alternative, active, travel routes to help alleviate congestion by providing viable alternatives and connectivity with existing public transport infrastructure, making cycling to work an option for a greater number of people.

The Programme for Government commits to “widening the eligibility of the Bike to Work scheme”. The Deputy will be aware that in Budget 2021, my colleague, the then Minister for Finance, increased the thresholds for the Cycle to Work scheme to enable the purchase of e-bikes and more recently the thresholds were increased again in the most recent Budget to accommodate the purchase of cargo bikes and cargo e-bikes.

Investment in infrastructure and equipment must be matched with investment in behavioural change programmes to encourage people to adopt healthier and more sustainable habits as part of their day to day routine. To this end, my Department continues to fund the NTA's Smarter Travel Workplaces and Campuses programme which works with large employers and third level institutions to encourage more sustainable commuting and travel choices among their students and staff. The Smarter Travel team provides a package of measures to promote cycling, walking, public transport, car sharing, the use of technology instead of travel, and flexible working packages.

Funding for the Smarter Travel programme in 2023 contains an allocation for the Smarter Travel Mark Pathfinder Project. This project will provide organisations with recognition as a workplace or campus that is committed to active and sustainable travel for their workforce, students and visitors. To achieve the Smarter Travel Mark, organisations will have to demonstrate robust communications, policies, facilities, incentives and supports in favour of sustainable commuting and business travel. The Mark was officially launched on 9th May 2023.

As part of an overall coordinated approach to the provision of an integrated sustainable transport network of cycling, walking and public transport, these various investments will allow us to further increase the numbers cycling, thereby easing congestion, improving public health and enhancing the liveability of our towns and cities; the investment will, I believe, have a lasting transformative effect on our transport network over the coming years.

My Department will also continue to undertake research into other additional measures which could be introduced to promote modal shift and encourage uptake of cycling across all demographics, including commuters, as part of the annual Budgetary process.

Cycling Policy

Questions (218, 219)

Alan Dillon

Question:

218. Deputy Alan Dillon asked the Minister for Transport to set out the estimated number of people who cycle to work nationally; how Ireland ranks relative to other EU Members States on this number; and if he will make a statement on the matter. [24612/23]

View answer

Alan Dillon

Question:

219. Deputy Alan Dillon asked the Minister for Transport what research his Department, or its agencies, have undertaken to examine barriers to cycling to work; the key findings of any such research; the work his Department is undertaking to address these barriers; and if he will make a statement on the matter. [24613/23]

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Written answers

I propose to take Questions Nos. 218 and 219 together.

In terms of data and research in relation to cycling and barriers to same, my Department has relied on studies such as the Census and the National Transport Authority's (NTA's) National Household Travel Survey. It is recognised, however, that these studies are carried out as part of a 5-year cycle and therefore we do not have up-to-date data as the cycle nears its end.

In order to gain an understanding of the impact of our Active Travel investment and address this data gap, the NTA is now working with Sustrans to carry out the Walking and Cycling Index in Ireland's main cities. First undertaken in Dublin in 2021, it has been rolled out this year to Cork, Galway, Limerick and Waterford metropolitan areas. This study will provide high quality evidence on people's participation in, and attitudes to walking, wheeling or cycling as well as the barriers to same, and reports are due to be published in early 2024.

While these studies will not provide national data, they will give a good indication of the impact of our Active Travel programmes in our major urban centres. New data from both the Census and the National Household Transport Survey are also expected this year which will provide the national picture.

Additionally, my Department has established the Sustainable Mobility Research Network on foot of an action in the National Sustainable Mobility Policy. It aims to advise on, agree and focus resources towards research priorities that provide an evidence base for implementation of the Policy, and includes representatives from the Department, relevant agencies including the NTA, and the Regional Assemblies. This group will map research currently being undertaken, identify gaps, and ensure that research conducted aligns with Government policy. This work will help to provide a more comprehensive data and evidence-base for policy and funding decisions going forward.

In terms of addressing barriers, my Department is continuously exploring ways to encourage the uptake of cycling as a mode of transport. It fully supports the provision of safe and direct cycling infrastructure, in line with the NTA's Active Travel Programme, and funds a number of behavioural change, training and participatory programmes to encourage greater levels of cycling across the population. Whilst significant investment has been undertaken in recent years, I firmly believe that further continued investment is required to ensure cycling is seen as a safe and attractive option for travel.

Question No. 219 answered with Question No. 218.

Cycling Facilities

Questions (220)

Alan Dillon

Question:

220. Deputy Alan Dillon asked the Minister for Transport to outline the total number of kilometres of dedicated cycle lanes available across Ireland; and if he will make a statement on the matter. [24615/23]

View answer

Written answers

Since 2010 my Department has provided funding to the National Transport Authority (NTA) under the Sustainable Transport Measures Grants (STMG) Programme and the Regional Cities Programme to implement sustainable transport projects, including providing cycling infrastructure, in the Greater Dublin Area and the regional cities of Cork, Galway, Limerick and Waterford.

The current Programme for Government has committed to investing approximately €360 million per annum in cross-Governmental funding for walking and cycling over the lifetime of the Government. This investment will help support my own Department's planned delivery of almost 1,000 kilometres of improved walking and cycling infrastructure by 2025, additional investment in Greenways and the continuation and potential expansion of various behavioural change programmes.

2021 saw the expansion of the NTA's Active Travel investment programme to rural Ireland. €72.8m was allocated to 19 local authorities. It should be noted this allocation was higher than the entire Active Travel budget for 2019 and does not include the increased funding allocated to the GDA and regional cities.

This year has seen a continuation of the significant investment in walking and cycling with €290 million administered through the NTA's Active Travel Programme in 2023, as well as €63 million allocated to Transport Infrastructure Ireland (TII) for investment in our Greenways.

In partnership with the Department of Education we also launched the Safe Routes to Schools Programme in 2021, which aims to accelerate the delivery of safe walking, scooting and cycling infrastructure on key access routes to schools. It has had a great response, with applications received from schools in every county in Ireland.

My Department is not the only Government Department to invest in cycling infrastructure, with projects being funded under the Department of Rural and Community Development's Rural Regeneration and Development Fund, the Department of Housing, Local Government and Heritage's Urban Regeneration and Development Fund, and on a smaller scale, by the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media through Sport Ireland Trails.

Since the increase in funding from the beginning of this Government term in 2020, almost 150 km of segregated or light segregation cycle track was constructed under the NTA's Active Travel Programme by the end of last year, in addition to approximately 36km of urban greenway, over 40km of shared space (pedestrian and cyclist shared infrastructure) and 7km of quietways.

Given the long-term nature of investment in cycling, however, at least in our major urban centres, as well as the fact that cycling infrastructure is not funded solely by one Department or agency, it is currently difficult to quantify the total number of kilometres of cycling infrastructure currently in existence; however my Department is exploring with local authorities, the NTA and TII the possibility of mapping all active travel infrastructure in order to provide us with the clarity on the existing cycle routes and pedestrian facilities available.

Rail Network

Questions (221)

Mairéad Farrell

Question:

221. Deputy Mairéad Farrell asked the Minister for Transport if there will be time for the Government to ensure that the Western rail corridor is added to the TEN-T network following the publication of the All-Island Rail Review; and if he will make a statement on the matter. [24970/23]

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Written answers

The All-Island Strategic Rail Review, which is being undertaken in co-operation with the Department for Infrastructure in Northern Ireland, will inform the development of inter-urban/inter-regional rail on the Island of Ireland over the coming decades. It is considering the potential scope for improved rail services along various existing and potential future corridors of the network, and that includes the potential afforded by disused and closed lines such as the Western Rail Corridor.

The Review is now at an advanced stage. Before the Review can be finalised, however, it is being considered under relevant environmental regulations, in particular the Strategic Environmental Assessment (SEA) regulations. If screened-in for SEA, a draft of the Review will be published for SEA public consultation before it is finalised and approved. It is anticipated that any such public consultation for the purposes of the environmental regulations would launch in July.

Following the completion of environmental regulatory procedures and finalisation of the report, the Review will be submitted for my formal approval and ultimately to Government, as well as to the Minister for Infrastructure in Northern Ireland. Should there continue to be an absence of Ministers in the NI Executive, approval will be considered taking into account the decision-making framework set out in the Northern Ireland (Executive Formation etc.) Act 2022 or relevant legislation in place at the time. It is expected that the final Review will therefore be published in the autumn.

The European Commission proposals for the revised TEN-T Regulation are currently at the trilogue stage in Brussels, with a view to adoption by the end of the year. I expect that the timings of both processes will allow Ireland adopt an informed position as regards the finalisation of the TEN-T rail network.

Rail Network

Questions (222)

Catherine Murphy

Question:

222. Deputy Catherine Murphy asked the Minister for Transport the amount of revenue generated for Iarnród Éireann through renting out units within train stations nationwide in 2022 and to date in 2023, in tabular form. [24976/23]

View answer

Written answers

As the Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport.

The issue of the amount of revenue generated for Iarnród Éireann through renting out units within train stations nationwide is an operational matter for Iarnród Éireann and I have therefore forwarded the Deputy's question to the company for direct reply.

Please advise my private office if you do not receive a response within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51

Tax Yield

Questions (223)

Richard Boyd Barrett

Question:

223. Deputy Richard Boyd Barrett asked the Minister for Finance the expected revenue yield from an increase in the vacant homes tax to 25% in a full year; and if he will make a statement on the matter. [24057/23]

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Written answers

The Vacant Homes Tax is a new measure announced in Budget 2023, which aims to increase the supply of homes for rent or purchase to meet demand. Legislative provision for the tax was made in the Finance Act 2022. The first chargeable period commenced on 1 November 2022. The first self-assessed returns are due on 7 November this year and the tax will be payable on 1 January 2024. Therefore, there is no data available on which to base the costing sought by the Deputy.

The Vacant Homes Tax will be charged at a rate equal to three times the property’s existing base Local Property Tax liability, and must be paid in addition to Local Property Tax. A small number of narrow exemptions are available to ensure that home-owners are not excessively penalised for normal temporary vacancy. As with Local Property Tax, the Vacant Homes Tax will apply only to habitable residential properties - it will not apply to derelict or uninhabitable properties. A residential property will be within the scope of the Vacant Homes Tax if it has been occupied as a dwelling for less than 30 days in a chargeable period.

In developing a new tax, an important consideration is simplicity. It is important to ensure that the tax is easy to understand and to administer. This is why the rate of the Vacant Homes Tax was set at a multiple of a property’s base Local Property Tax charge as the Local Property Tax system is well understood. The property’s base Local Property Tax charge is determined according to the valuation band that applies to a property, rather than the precise value of the property. A vacancy tax charged as a percentage of a property’s market value would therefore require property owners to self-assess the market value of their property precisely.  Such a change would add complexity to the operation and administration of the tax and create a significant burden for the taxpayer. 

As the Deputy will be aware, certain information on vacancy was collected as part of Local Property Tax returns in November 2021.  This data has not been verified by Revenue and was collected for informational purposes only. A preliminary analysis of this data was published by Revenue in July 2022, and is available at: www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/lpt-stats-2022/index.aspx.  In arriving at the estimates for the Budget documentation, certain assumptions were made based on the Revenue analysis and took into account the number of long-term vacant properties (those unoccupied for greater than 12 months), their valuation band, as well as their reasons for lying vacant which may correspond with an exemption from the tax. It was tentatively estimated that less than 15% of the total properties reported as vacant may be in scope of the tax.

This measure aims increase the supply of homes for rent or purchase to meet demand, rather than raise revenue. It is a new measure which comes into operation this year. The estimated yield is low, as I anticipate this tax will influence behaviour and lead to property owners putting their vacant properties to more effective use. As such, the number of properties who will be subject to this tax and the eventual yield may be lower than the estimates provided.

Tax Code

Questions (224)

Robert Troy

Question:

224. Deputy Robert Troy asked the Minister for Finance if he will abolish the deposit interest retention tax on children's saving accounts. [24066/23]

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Written answers

Section 257 of the Taxes Consolidation Act 1997 requires all deposit takers to deduct Deposit Interest Retention Tax (DIRT) from payments of interest made to an account unless the account qualifies as an exempt account. Information on the accounts to which a DIRT exemption may apply is contained in Tax and Duty Manual Part 08-04-08, which is available on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-08/08-04-08.pdf.

There is no specific exemption in the case of interest paid on deposit accounts held by children.  Many children’s savings accounts are opened either in the name of an adult, with the child’s interest noted, or in the name of both an adult and the child. This means that a DIRT exemption for children’s savings accounts would be complex to design.

Review of DIRT

The Commission on Taxation and Welfare, in its report “Foundations for the Future” published on 14 September 2022, recommended that a working group is established to review and propose changes to the taxation of investment products, which would include funds, life assurance investment products, exchange traded funds and other savings products, with the goals of simplification and harmonisation where possible. Acting on the recommendation of the Commission on Taxation and Welfare, on 6 April 2023, I published the Terms of Reference for the Department of Finance to conduct a review of Ireland’s funds sector and produce a report ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’, which includes a review of the application of DIRT.

As part of this review the Department will hold a Public Consultation and anyone who wishes to make a submission in relation to DIRT, or any of the other matters being considered by the review, are welcome to do so. 

Housing Schemes

Questions (225)

Ivana Bacik

Question:

225. Deputy Ivana Bacik asked the Minister for Finance if there is a clause in the enhanced help-to-buy scheme which allows separated or divorced people who are not first-time buyers to avail of the scheme; and if he will make a statement on the matter. [24068/23]

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Written answers

People who have been separated or divorced may be eligible for Help to Buy (HTB) provided that they meet the eligibility criteria for the scheme. However, s. 477C of the Taxes Consolidation Act 1997 (TCA) requires that HTB claimants must be first-time purchasers.

First-time purchaser, for the purposes of HTB is defined as:

"an individual who, at the time of a claim under subsection (3) has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling;"

This definition includes circumstances where there is more than one person is involved in the purchase or building of a new home.

There are no exceptions to the above definition of first-time purchaser for the purposes of HTB. This means that HTB is not available where one or more of the purchasers has previously purchased or built a property but as a result of a separation or divorce subsequently no longer have an interest in that property.

The intention behind this policy is to target the HTB relief on those who have not had the opportunity to build up equity in another property which could be used to purchase the second or subsequent property and those who could not have availed of HTB relief previously. While I understand the difficulties faced by individuals in saving for a deposit for a home, the HTB incentive was designed as a targeted response to the challenges facing first-time purchasers in particular.

As with all tax incentive schemes, there will always be individuals who do not meet the eligibility criteria. In designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible, consistent with the overall policy intention behind the measure, and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources.

I have no plans at present to extend HTB eligibility to non-first-time buyers. 

Budget Process

Questions (226)

Róisín Shortall

Question:

226. Deputy Róisín Shortall asked the Minister for Finance the expected net effect of carryover measures for Budget 2024 as a result of Budget 2023 measures; the way in which it is accounted for in the budgetary stance projections; and if he will make a statement on the matter. [24112/23]

View answer

Written answers

As the Deputy will recall, the Tax Policy Changes document published as part of Budget 2023 set out both the first and full year cost of taxation measures. Carryover is calculated as the difference between the effect on a full year and that on 2023.

The impact of carryover will be reviewed as part of the normal budgetary process, as there are several moving parts to be considered, such as the take-up of measures and specific tax relevant factors, which could impact on the expected return.

The Government’s medium-term budgetary stance was set out in the Summer Economic Statement 2021. The stance for Budget 2024 will be assessed in this year’s Summer Economic Statement, which will be published by Government this summer.

The net carryover effect into next year of Budget 2023 expenditure measures will be considered as part of the estimates process.

Tax Yield

Questions (227)

Róisín Shortall

Question:

227. Deputy Róisín Shortall asked the Minister for Finance the expected revenue yield from an increase in excise on diesel of five cents per litre; the expected cost of using the diesel rebate scheme to offset such an increase for commercial transport; and if he will make a statement on the matter. [24113/23]

View answer

Written answers

I am advised by Revenue that the Revenue Ready Reckoner can be used to estimate the effect of changes to the tax code, including, on page 22, the estimated full year cost or yield of potential changes to Mineral Oil Tax rates for Diesel. The Ready Reckoner is available at the following link:

www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf

Based on the volume of diesel for which rebate claims were received in recent years, the additional cost of using the Diesel Rebate Scheme to offset a 5 cent per litre increase for qualifying commercial transport is estimated to be in the region of €25 million.

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