Thursday, 5 Oct 2023

Written Answers Nos. 81-100

Banking Sector

Questions (85)

Christopher O'Sullivan

Question:

85. Deputy Christopher O'Sullivan asked the Minister for Finance for an update on the implementation of the recommendations of the retail banking review. [43179/23]

Written answers

Minister for Finance

The Government approved the publication of the Retail Banking Review and the implementation of its recommendations on 29 November 2022. Each recommendation identifies the body or bodies responsible for delivery of that recommendation and in some cases contain timelines for delivery of the recommendation, where appropriate. It is for the relevant bodies to consider and implement the recommendations addressed to them.

Implementation of many of the recommendations requires close collaboration between my Department and the Central Bank. The implementation of the recommendations that are directed at the Department of Finance have been embedded in the business plans of the relevant areas.

A key issue identified by the Review was access to banking services, particularly the ability to withdraw and deposit cash, and a number of recommendations address this. There is a dedicated team in place working on this issue that is currently developing legislation and preparing heads of bill to be ready by the end of the year.

These heads of bill will include requiring the larger retail banks to provide reasonable access to cash, based on existing levels of access. This work involves significant consultation with the Central Bank and other stakeholders.

The Central Bank has informed me that it is also working on the implementation of recommendations addressed to it. The Bank is currently undertaking a major review of the Consumer Protection Code and the outcome of this significant piece of work is likely to address several of the recommendations of the Review.

Other recommendations require implementation by other State agencies, such as the Competition and Consumer Protection Commission (CCPC), Government departments and other relevant stakeholders.

It is also crucial that the retail-banking sector ensures the interest of consumers are a priority in their organisations and seek to work together, where possible, to deliver the best outcomes for the economy and citizens. The retail-banking sector has been contacted regarding their role in carrying out those recommendations which fall to them.

Question No. 86 answered orally.

Tax Yield

Questions (87)

Peadar Tóibín

Question:

87. Deputy Peadar Tóibín asked the Minister for Finance the amount taken in by the Government in fuel tax in each of the past ten years and to date in 2023, by fuel type, and in monetary value. [42634/23]

Written answers

Minister for Finance

Excise duties, in the form of Mineral Oil Tax, Natural Gas Carbon Tax and Solid Fuel Carbon Tax, apply to liquid, gaseous and solid fuels in the State. Mineral Oil Tax comprises a carbon and a non-carbon component whereas Natural Gas Carbon Tax and Solid Fuel Carbon Tax do not have any non-carbon component.

I am advised by Revenue that the receipts collected in respect of these excise duties in each of the past ten years up to 2022 are published on the Revenue website.

The provisional fuel excise duty receipts in the year to August 2023 are contained in the following table.

Fuel Type	Total Excise (€)
Diesel	998.7 million
MGO	79.4 million
Petrol	321.3 million
Kerosene	65.2 million
Other LPG	16.5 million
Fuel Oil	1.7 million
Aviation Gasoline	0.3 million
Auto LPG	0.2 million
Natural Gas	84.6 million
Solid Fuel	14.6 million

Revenue raised from the non carbon component of mineral oil tax goes to the central exchequer and is used to fund essential public services such as education, health, policing and social protection.

The carbon component is commonly referred to as carbon tax. The 2020 Programme for Government committed to increasing the amount that is charged per tonne of carbon dioxide emissions from fuels to €100 by 2030. Government followed through on this commitment by introducing the necessary legislation in Finance Act 2020 to provide for this 10-year trajectory. This measure is a key pillar underpinning the Government’s Climate Action Plan to halve emissions by 2030 and reach net zero no later than 2050.

A significant portion of carbon tax revenue is allocated for expenditure on targeted welfare measures and energy efficiency measures, which not only support the most vulnerable households in society but also in the long term, provides support against fuel price impacts by reducing our reliance on fossil fuels.

In 2023, the additional revenue allocated for expenditure was €623m. This was comprised of the additional revenue made available in 2022 (€174m), 2021 (€148m), 2020 (€90m) and an additional €211m in 2023.

€291 million of this revenue was allocated to residential and community energy efficiency in 2023. This funding permitted the continuation of a range of expanded supports for energy efficiency.

€81m of revenue was provided to the Department of Agriculture, Food and the Marine to fund the Agri-Climate Rural Environment Scheme (ACRES). The purpose of this scheme is to support farmers undertaking environmentally sustainable farming practices.

€218m was allocated to targeted social protection measures which provided for increases in the fuel allowance, the living alone allowance, and the qualified child payment. Analysis conducted in support of Budget 2023 has found that households in the bottom five income deciles are better off as a result of the increased spending on social protection made possible by the increases to the carbon tax. So, the lowest income half of all households in Ireland are net beneficiaries from this increase in the carbon tax. The remaining revenues (€33m) were allocated to fund the continuation of the 2020 - 2022 Carbon Tax Investment Programme.

Questions Nos. 88 and 89 answered orally.

Tax Code

Questions (90)

Robert Troy

Question:

90. Deputy Robert Troy asked the Minister for Finance if he will be bringing forward any new tax measures to support indigenous businesses looking to develop export markets; and if he will make a statement on the matter. [43165/23]

Written answers

Minister for Finance

The Deputy will be aware that it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions. However, I will draw the Deputy’s attention to a number of current taxation measures which support the scale-up and expansion of Irish businesses.

The Foreign Earnings Deduction (FED) is designed to support firms to develop new export markets for their goods and services. The FED is a relief from income tax for Irish resident employees who temporarily carry out duties of their office or employment in certain foreign countries. Currently the relief covers thirty foreign jurisdictions, including the BRICS countries, and Finance Act 2022 extended the FED relief to the end of 2025.

Other measures to support the growth of Irish businesses generally are the Employment and Investment Incentive (EII), the Start-Up Relief for Entrepreneurs (SURE), and the Start-Up Capital Incentive (SCI), all of which are designed to support companies in securing risk finance to found or grow a corporate business.The Employment and Investment Incentive (EII) provides a platform for investment in certain SMEs. It provides tax relief for individuals who purchase qualifying trading company shares. The relief aims to encourage individuals to provide equity-based finance to trading companies, to assist companies to raise finance to allow them to expand and create or retain jobs.

The Start-Up Relief for Entrepreneurs (SURE) is a tax relief for entrepreneurs who leave an employment to set up their own company. It can provide a refund of income tax paid in previous years where the individual establishes a new trading company and invests cash through the purchase of shares.The Start-Up Capital Incentive (SCI) is a tax relief for early-stage micro companies to attract equity-based risk finance from family members.

There are also incentives available to support smaller companies in the early stages of their growth, and in competing with larger businesses to attract key staff. The start-up relief for new companies provides relief from corporation tax to new companies in respect of their first five years of trading, subject to limits. The Key Employee Engagement Programme (KEEP) allows certain SMEs to engage key staff in a more cost efficient manner. The scheme is a focused share option programme, intended to help SMEs attract and retain talent in a highly competitive labour market.

The purpose of these reliefs is to encourage the foundation and growth of companies in Ireland, and to support job creation and economic activity in the State. Promoting investment and jobs in Ireland is a key part of the Government’s overall strategy.

Tax Reliefs

Questions (91, 142)

Catherine Connolly

Question:

91. Deputy Catherine Connolly asked the Minister for Finance further to Parliamentary Question No. 137 of 22 June 2023, the status of the disabled drivers medical board of appeal; the details of any engagement between his Department and the National Rehabilitation Hospital with regard to resolving issues which led to the withdrawal of its services in February 2023; and if he will make a statement on the matter. [42980/23]

Matt Carthy

Question:

142. Deputy Matt Carthy asked the Minister for Finance when the disabled drivers medical board of appeal will again begin to hear appeals. [43046/23]

Written answers

Minister for Finance

I propose to take Questions Nos. 91 and 142 together.

Progress has been made on efforts to convene a new Disabled Drivers Medical Board of Appeals (DDMBA), to secure new hosting arrangements for the DDMBA and to recommence the appeals process.

I have now formally appointed all five members to the new DDMBA. Funding arrangements between the Department of Finance and the Department of Health have been agreed. On this basis the National Rehabilitation Hospital (NRH) has confirmed that they will again host the DDMBA. Preparatory work is underway, that will include due deliberation on how best to clear the backlog. The appeals process will re-commence upon completion of this work. In parallel, my officials are working with the NRH to conclude other conditions for new hosting arrangements, which may continue after the appeals process is again up and running.

I appreciate that it has taken far longer than anticipated to get to this point. With the Department of Health we have had to run four Expression of Interest campaigns over 18 months to source the legislatively required five members. We have also had to re-negotiate new hosting arrangements with the NRH following their withdrawal of services in February 2023.

As of end August 2023 (latest data available) there were 1,079 appeals outstanding.

Question No. 92 answered orally.

Business Supports

Questions (93)

Niamh Smyth

Question:

93. Deputy Niamh Smyth asked the Minister for Finance if he will provide an update on a county basis of the number of businesses in Cavan, Monaghan, Sligo, Leitrim and Donegal that successfully applied for inclusion under the temporary business energy support scheme, in tabular form; the estimated value or worth of the support in each county; if he has plans for any other similar scheme in the near future; and if he will make a statement on the matter. [42870/23]

Written answers

Minister for Finance

The Temporary Business Energy Support Scheme (TBESS) was introduced to support qualifying businesses with increases in their electricity or natural gas costs arising from the Russian invasion of Ukraine. Finance Act 2022 (as amended) made provision for the TBESS.

The scheme provided support to qualifying businesses in respect of increases in their electricity or natural gas costs. The TBESS was available to eligible tax compliant businesses carrying on a trade or profession, the profits of which are chargeable to tax under Case I or Case II of Schedule D.

The claim period for TBESS was by calendar month from 1 September 2022 to July 31 2023. The final deadline for eligible businesses to submit claims for relief under the Temporary Business Energy Support Scheme (TBESS) was Saturday, 30 September 2023. The scheme is now closed.

Over €140 million has been paid out to 31,044 businesses across the country.

I am advised by Revenue of the registrations and claims for the businesses who availed of the TBESS for the following counties:

County	Registrations Approved	Value of Approved Claims
		€m
Cavan	665	3,024,823
Donegal	1,316	4,589,265
Leitrim	261	578,218
Monaghan	637	2,646,916
Sligo	439	2,064,630

I am advised by Revenue that further TBESS statistics will be published on the Revenue website on 5 October 20223 at: www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/cost-living.aspx

The TBESS was designed as a temporary measure and I do not have plans at this time to introduce a similar scheme.

Tax Code

Questions (94)

Brendan Griffin

Question:

94. Deputy Brendan Griffin asked the Minister for Finance if he will reduce the taxes applied to building activity and materials in respect of residential construction to reduce the cost of building a dwelling; and if he will make a statement on the matter. [43056/23]

Written answers

Minister for Finance

As the Deputy will be aware, it is a longstanding practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

The VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate (currently 23% in Ireland), unless they fall within the categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT.

Ireland already applies a reduced rate of 13.5% to all construction, including residential construction.

It should be noted that while construction materials for the most part have the standard rate of VAT applied they have an effective rate of 13.5% VAT due to the 'two-thirds rule' which applies to construction. This rule means that if the cost of the goods used in carrying out work does not exceed two-thirds of the total price, the rate which applies to the service then applies to the entire transaction.

Housing Schemes

Questions (95)

Alan Dillon

Question:

95. Deputy Alan Dillon asked the Minister for Finance the number of individuals who have benefitted from the help-to-buy scheme in County Mayo; and if he will make a statement on the matter. [43084/23]

Written answers

Minister for Finance

As the Deputy is aware, the Help to Buy (HTB) incentive is a scheme, administered by Revenue, to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation.

I am advised by Revenue that approximately 1,360 individuals with a County Mayo address have benefited from HTB and the average relief claimed for those individuals is €11,449. The total relief granted for Mayo HTB claims since the scheme’s inception on 1 January 2017 is approximately €15.6 million. I am further advised by Revenue that annual and monthly statistics on the Help to Buy (HTB) scheme are readily available on its website.

Tax Code

Questions (96)

Ged Nash

Question:

96. Deputy Ged Nash asked the Minister for Finance to report on any work his Department has undertaken to advance the recommendations contained in the Commission on Taxation and Welfare's report on capital taxes; if he agrees that the balance between income and capital taxes needs to change; and if he will make a statement on the matter. [43053/23]

Written answers

Minister for Finance

As the Deputy is aware, the report of the Commission on Taxation and Welfare (COTW) examined Ireland’s capital taxes policy in detail. The Commission placed emphasis on the importance of broadening the tax base and in particular recommended that the share of taxes from capital and wealth should be increased. This is in the context of 2.5% of tax receipts currently coming from capital taxes. The COTW made the case for significant changes to current capital taxes policy. One theme which emerged from the COTW report was that the various reliefs provided for in respect of both Capital Acquisitions Tax (CAT) and Capital Gains Tax (CGT) interact in a way which provide valuable relief to those who qualify with a consequence that the amount of tax collected on the transfer of assets is diminished.

For CGT, the Commission made recommendations related to the treatment of assets on a death, restriction on principal private residence relief and lifetime limits on disposals to children who qualify for retirement relief. For Capital Acquisitions Tax, the commission made recommendations related to group thresholds, gifts and inheritances generally, the treatment of foster children and reductions in the availability of agricultural and business relief.

My Department will, over the medium to long term consider the wider range of issues highlighted by the COTW. In particular, the recommendation’s regarding specific reliefs will be considered as each of these reliefs falls due for their periodic review.

Ireland has one of the most progressive systems of taxes and social transfers of any EU or OECD country, which contributes to the redistribution of income and to the reduction of income inequality.

Capital taxes play an important role in ensuring that taxation is not focused solely on income and that those who benefit from gains in the value of their assets or gifts of assets are included within the tax net on an equitable basis.

In conclusion, I can assure you that all taxes and potential taxation options are kept under constant consideration and it remains a priority of mine to ensure that Ireland maintains its progressive taxation system.

Interest Rates

Questions (97)

Aindrias Moynihan

Question:

97. Deputy Aindrias Moynihan asked the Minister for Finance what his engagement to date has been with the Central Bank of Ireland and the Irish banking sector about the interest rates available to lending and savings customers; and if he will make a statement on the matter. [43147/23]

Written answers

Minister for Finance

The determination of interest rates is a commercial decision for individual banks and is the sole responsibility of the board and management of each bank.

Neither the Central Bank of Ireland nor I have a role in setting the interest rates offered by institutions operating in the Irish banking sector. Although the State is a shareholder in some of the banks operating in this jurisdiction, those entities are run on a commercial and independent basis as set out in the Relationship Frameworks.

The Central Bank of Ireland published its latest statistical release on monthly retail interest rates on 13 September 2023. These statistics relate to July 2023 and show that the weighted average interest rate on new Irish mortgage agreements at end-July 2023 was 4.06 per cent, an increase of 2 basis points compared to the previous month and up 143 basis points in annual terms.

The equivalent euro area average rose by 8 basis points to 3.86 per cent. As at end-July, the rate in Ireland exceeded the euro area average by 20 basis points.

Interest rates on household overnight deposits fell to 0.06 per cent in July 2023. The weighted average interest rate on new household deposits with agreed maturity fell to 1.89 per cent in July, reflecting compositional factors rather than a fall in rates offered by any institution. The equivalent rate in the euro area was 2.83 per cent.

While I or the Central Bank have no role in setting of interest rates, I have previously stated that I expect firms to treat their customers fairly by passing on increases in deposit rates. I note that many providers have recently increased their deposit rates.

For borrowers, the Government is aware that the rising interest rate environment can pose challenges to some. The Deputy will be aware that on 31 August, I met with representatives from the retail banks, non-banks and other industry stakeholders including the Central Bank of Ireland, to discuss these challenges.

I also met representatives from the Money Advice Budgeting Service and the Insolvency Service of Ireland amid increased demand for their services.

I made it clear that banks and all other mortgage entities should be fully aware of the significant challenges that some of their customers are facing and, therefore, lenders and servicers should respond by assisting their customers who are experiencing difficulty.

I also highlighted that greater clarity should be provided to customers on the possibility of switching provider and this option should be fully supported by all mortgage entities, including the existing mortgage creditor as the level of switching between firms is low.

In addition I supported the steps taken by the Central Bank to ensure that firms proactively deal with emerging difficulties for their customers since the increase in interest rates. The Central Bank requires firms to enhance the range of supports available to borrowers in or facing arrears and to have sufficient operational capacity to manage applications by borrowers to switch their mortgage or mortgage provider.

It will now be necessary for the industry to demonstrate that they are delivering for borrowers in difficulty with supports and certainty, and developing long-term sustainable solutions for borrowers.

I would also encourage consumers to use the different tools available to see if they are getting the best possible value. on their financial product such as deposits or mortgages.

The Competition and Consumer Protection Commission's (CCPC) website includes a number of comparison tools to help consumers to make informed choices.

Tax Credits

Questions (98, 108, 117, 124, 129, 132, 154)

Seán Haughey

Question:

98. Deputy Seán Haughey asked the Minister for Finance if he will provide an update of the number of people in Dublin who are currently availing of the rent tax credit, in tabular form; if he has plans for any changes to the credit in the near future; and if he will make a statement on the matter. [42863/23]

Michael Moynihan

Question:

108. Deputy Michael Moynihan asked the Minister for Finance if he will provide an update on a county basis of the number of people in Cork and Kerry who are currently availing of the rent tax credit, in tabular form; if he has plans for any changes to the credit in the near future; and if he will make a statement on the matter. [42865/23]

Niamh Smyth

Question:

117. Deputy Niamh Smyth asked the Minister for Finance if he will provide an update on a county basis of the number of people in Cavan, Monaghan, Sligo, Leitrim and Donegal who are currently availing of the rent tax credit, in tabular form; if he has plans for any changes to the credit in the near future; and if he will make a statement on the matter. [42871/23]

Willie O'Dea

Question:

124. Deputy Willie O'Dea asked the Minister for Finance if he will provide an update on a county basis of the number of people in Limerick, Clare and Tipperary who are currently availing of the rent tax credit, in tabular form; if he has plans for any changes to the credit in the near future; and if he will make a statement on the matter. [42867/23]

Barry Cowen

Question:

129. Deputy Barry Cowen asked the Minister for Finance if he will provide an update on a county basis of the number of people in Offaly, Laois, Longford and Westmeath who are currently availing of the rent tax credit, in tabular form; if he has plans for any changes to the credit in the near future; and if he will make a statement on the matter. [42869/23]

James O'Connor

Question:

132. Deputy James O'Connor asked the Minister for Finance the details of the uptake from the rent credit tax from Budget 2023; how many people applied for the tax credit; and if he will make a statement on the matter. [43092/23]

Jennifer Murnane O'Connor

Question:

154. Deputy Jennifer Murnane O'Connor asked the Minister for Finance if he will provide an update on a county basis of the number of people in Carlow, Kilkenny, Waterford, and Wexford who are currently availing of the rent tax credit, in tabular form; if he has plans for any changes to the credit in the near future; and if he will make a statement on the matter. [43189/23]

Written answers

Minister for Finance

I propose to take Questions Nos. 98, 108, 117, 124, 129, 132 and 154 together.

The Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997, was introduced by Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025. The maximum value of the credit is €1,000 per year in the case of a jointly assessed married couple or civil partners, and €500 in all other cases.

I am advised by Revenue that the Rent Tax Credit statistics currently available refer only to claims by PAYE taxpayers for the 2022 tax year and the 2023 tax year to-date.

Data on claims by self-assessed taxpayers are not yet available as these taxpayers’ returns are generally submitted later in the year. The statutory filing date for the 2022 tax return for self-assessed taxpayers is 31 October 2023.Claims in respect of the 2022 year of assessment can be made by PAYE taxpayers by submitting an Income Tax return for that year. For claims relating to 2023, PAYE taxpayers have the option of claiming the rent tax credit due to them either as rent is incurred or at the end of the year through their Income Tax return.Rent Tax Credit claims are made on a ‘taxpayer unit’ basis. A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment.I am further advised that as of the 28 September 2023, over 289,971 Rent Tax Credit claims have been made by 254,527 taxpayer units consisting of:

• 203,000 taxpayer units that made claims for 2022 only,

• 35,444 taxpayer units that made claims for both 2022 and 2023,

• 16,083 taxpayer units that made claims for 2023 only.

The total amount of Rent Tax Credit claimed for the tax year 2022 to-date amounts to €133.59 million and total amount claimed for the tax year 2023 to-date amounts to €31.86 million.

The operation of the Rent Tax Credit is closely monitored by my Department in conjunction with Revenue and the question of whether any further adjustments are required is for consideration in the context of the Budget and Finance Bill process.

As the Deputies will appreciate, it is a longstanding practice that the Minister for Finance does not comment, in advance of the Budget, on any matters that might be the subject of a Budget decision.

As of the 28th of September 2023, data by county on the number of taxpayer units that made Rent Tax Credit claims for the years 2022 and 2023 are as follows.

Carlow, 2,157 taxpayer units made claims for 2022 and 468 taxpayer units made claims for 2023.

Cavan, 1,949 and 456.

Clare, 2,937 and 706

Cork, 27,125 and 5,710

Donegal, 2,990 and 745

Dublin, 112,836 and 23,082

Galway, 17,171 and 3,627

Kerry, 3,560 and 799

Kildare, 8,399 and 1,933.

Kilkenny, 2,486 and 614

Laois, 1,841 and 477

Leitrim, 776 and 176

Limerick, 11,689 and 2,309

Longford, 1,391 and 312

Louth, 3,179 and 808

Mayo, 3,404 and 817

Meath, 4,341 and 1,104

Monaghan, 1,611 and 395

Offaly, 1,929 and 463

Roscommon, 1,541 and 390

Sligo, 2,793 and 627

Tipperary, 4,069 and 918

Waterford, 4,561 and 1,100

Westmeath, 3,467 and 867

Wexford, 3,714 and 852

Wicklow, 2,848 and 732

Information is not yet available in relation to 3,680 taxpayer units that made claims for 2022 and 1,040 taxpayer units that made claims for 2023.

Tax Code

Questions (99)

Robert Troy

Question:

99. Deputy Robert Troy asked the Minister for Finance if he has any plans to amend the VAT treatment of the hiring of means of transport; and if he will make a statement on the matter. [43164/23]

Written answers

Minister for Finance

As the Deputy will be aware, it is a longstanding practice that the Minister for Finance does not comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

However the Deputy should note that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless they fall within categories of goods and services specified in the Directive, in respect of which Member States may apply a lower rate or exemption from VAT.

In addition, the Directive allows for historic VAT treatment to be maintained under certain conditions and Ireland has retained the application of VAT exemption to the transport of passengers and their accompanying baggage. This means that under Ireland’s VAT rules, the supplier of passenger transport services does not register for VAT, does not charge VAT on the supply of their services and, consequently, has no VAT recovery entitlement on their input costs.

Housing Schemes

Questions (100)

Catherine Connolly

Question:

100. Deputy Catherine Connolly asked the Minister for Finance further to Parliamentary Question No. 55 of 9 May 2023, his plans for the phasing out of the help-to-buy scheme; the details of any planned changes to the criteria of the scheme in the interim; and if he will make a statement on the matter. [42981/23]

Written answers

Minister for Finance

The Help to Buy Scheme was introduced in 2017 with the purpose of assisting first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home. As the Deputy is aware, in Finance Act 2022 Help to Buy was extended for a further two years to the end of 2024.

To date, the Help to Buy scheme has been a significant support for first time buyers of new homes. To 31 August 2023, some 41,570 first-time buyers, either singly or as part of a couple, have benefitted from the scheme.

I note that the Deputy has previously had concerns regarding the potential that the scheme may exacerbate housing prices. As has previously been stated, policy makers were aware at the time that the scheme was being developed that it was not without risk. Likewise they were aware that there was a danger that, against a background of constrained supply, the initiative could serve to increase prices for new homes, thus potentially undermining to some extent the affordability aspiration of the scheme. However, on all occasions when the matter was formally examined to date, concerns in this regard were not borne out by the review data.

Studies carried out by Indecon Economic consultants found that the main driver of house prices was the mismatch between supply and demand rather than the existence of the scheme. Similarly, the review by Mazars in 2022 found that there is no definitive evidence that Help-to-Buy pushed up the price of new houses. In fact, Mazars found that the prices paid for new homes by people who received the Help to Buy relief were slightly lower than new house prices in the economy in general, likely because of the €500,000 price eligibility cap.

The 2022 review recommended that a more appropriate, non-tax expenditure policy mechanism to address the market failure should be designed to replace Help to Buy. Having considered the report, in Finance Bill 2022 the then Minister for Finance proposed extending Help to Buy for a further two years in its current form. This approach was in accordance with a recommendation in the report and took account of both the cost of the scheme to date and the need for certainty in the market while awaiting the increase in new housing supply envisaged by the Government’s Housing for All strategy.

To reiterate the response to previous parliamentary questions, it remains the case that, as with any tax expenditure, the scheme will be kept under review. However, decisions regarding taxation measures are usually made in the context of the annual Budget and Finance Bill process and at the appropriate time. Such decisions also must have regard to the sound management of the public finances and my Department's Tax Expenditure Guidelines. The guidelines make clear that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.

I will continue to work with my Cabinet colleagues to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of scarce public resources and boost the supply of housing in both the public and private sectors.