Written Answers Nos. 281-300
281. Deputy Peadar Tóibín asked the Minister for Finance the amount spent by his Department on travel and accommodation costs associated with Ministerial visits abroad to date in 2024, in tabular form. [13805/24]
Amharc ar fhreagraI wish to advise the Deputy that the information he has requested is provided below in tabular format. Please note that some details (invoices & credits) are yet to be received for the St. Patrick’s Day Programme visits and the Diplomatic visit to London.
|
Date From |
Date To |
Ministerial Visit |
Attendees |
Travel Costs |
Accommodation Costs |
|
07/01/2024 |
12/01/2024 |
Bilateral Meeting - California USA |
Minister & 5 Staff |
€ 20,532.79 |
€ 16,946.26 |
|
15/01/2024 |
19/01/2024 |
Eurogroup/ECOFIN & World Economic Forum - Brussels & Davos |
Minister & 3 Staff |
€ 10,051.27 |
€ 8,482.16 |
|
30/01/2024 |
30/01/2024 |
AMLA BID - Brussels |
Minister & 2 Staff |
€ 434.30 |
€ 0 |
|
23/02/2024 |
23/02/2024 |
Eurogroup/ECOFIN - Brussels |
Minister & 2 Staff |
€ 511.96 |
€ 0 |
|
05/03/2024 |
08/03/2024 |
Diplomatic Visit - London |
Minister & 3 Staff |
€ 1,133.51 |
Data not available as at this time. |
|
11/03/2024 |
18/03/2024 |
St. Patrick's Day Programme - China |
Minister & 4 Staff |
€ 25,483.55 |
€ 12,572.72 |
|
15/01/2024 |
18/01/2024 |
AMLA - Helsinki |
Minister of State & 3 Staff |
€ 2,181.62 |
€ 1,304.49 |
|
23/01/2024 |
24/01/2024 |
AMLA - Warsaw |
Minister of State & 2 Staff |
€ 4,467.83 |
€ 514.65 |
|
29/01/2024 |
03/02/2024 |
AMLA - Paris |
Minister of State & 3 Staff |
€ 2,544.33 |
€ 1,655.75 |
|
06/02/2024 |
08/02/2024 |
AMLA – Copenhagen, Bucharest & Zagreb |
Minister of State & 2 Staff |
€ 5,080.80 |
€ 764.00 |
|
08/03/2024 |
15/03/2024 |
St. Patrick's Day Programme - Mexico |
Minister of State & 1 Staff |
€ 13,527.82 |
Data not available at this time. |
282. Deputy Peadar Tóibín asked the Minister for Finance the number of properties either owned or leased by his Department, which are currently vacant; the length of time the properties have been vacant for; and the location of the properties, in tabular form. [13823/24]
Amharc ar fhreagraI wish to advise the Deputy that my Department is provided with accommodation by the OPW and does not own or lease any properties.
283. Deputy Rose Conway-Walsh asked the Minister for Finance the total loans drawn down by Ireland from the European Investment Bank in each of the past ten years in tabular form; to specify the purpose and amount of each loan; and if he will make a statement on the matter. [13839/24]
Amharc ar fhreagraAt the outset, the Deputy should note that as Minister for Finance, I have no role in the draw-down of any loans that have been agreed between the European Investment Bank (EIB) and borrowers here in Ireland. This is a commercial matter between the EIB and its borrowers, and neither I, nor my Department, have information in relation to loans drawn down in Ireland that the Deputy is seeking. There is, however, publicly available information on the EIB’s website in relation to loan approvals in Ireland, which specifies the purpose and the amount of each loan, going back to 2015, which is available at the link below: www.eib.org/en/projects/all/index.htm?q=&sortColumn=statusDate&sortDir=desc&pageNumber=0&itemPerPage=25&pageable=true&language=EN&defaultLanguage=EN&=&or=true&yearFrom=2013&yearTo=2024&orStatus=true&orRegions=true&countries=IE&orCountries=true&orSectors=true
As the Deputy will see from this information, Ireland has benefitted from loans through the EIB to the value of approximately €1 billion per annum in recent years. Indeed, going back to 2015, the EIB has financed more than €8.7 billion worth of projects and investments throughout Ireland across diverse areas including inter alia energy efficiency and sustainability, education, agriculture, healthcare, social and affordable housing, and SME support. To ensure that this level of financing is maintained or augmented, I and my Department play a facilitation role to promote opportunities for EIB investment, including through direct engagement with the EIB and its office here in Ireland, and through the EIB-Ireland Financing Group. Established in 2016, the Financing Group is co-chaired by the Minister for Finance and the EIB President and is attended by a number of key Government Ministers and senior EIB officials to identify, develop and implement investment opportunities by the Bank in Ireland. The next meeting of the Group is due to take place in early May.
284. Deputy Ged Nash asked the Minister for Finance the number of successful Living City Initiative applications made to renovate and refurbish properties in Limerick, Galway, Waterford and Kilkenny respectively in the years 2021, 2022 and 2023; the reasons Drogheda is not included in the initiative, given its population is significantly larger than that of Kilkenny; and if he will make a statement on the matter. [13848/24]
Amharc ar fhreagraThe Living City Initiative (LCI) is a modest, targeted, measure which is aimed at very specific areas in urgent need of regeneration, it is provided for under sections 372AAA to 372AAD of the Taxes Consolidation Act 1997. It offers income or corporation tax relief for qualifying expenditure incurred in the refurbishment and conversion of qualifying residential and commercial buildings located within ‘Special Regeneration Areas' in Cork, Dublin, Galway, Kilkenny, Limerick and Waterford.
Applications are required to be made to the relevant Local Authority in respect of residential projects. Revenue obtains information from the Local Authorities in respect to the number of applications received by them. Based on the most recent information available to Revenue, the number of total applications per eligible city since the introduction of the scheme are as follows:
|
Local Authority |
Number of applications |
|
Cork |
114 |
|
Dublin |
210 |
|
Galway |
11 |
|
Kilkenny |
19 |
|
Limerick |
80 |
|
Waterford |
76 |
It is not possible to break these applications down by year due to the low number of claimants and the need to protect taxpayer confidentiality. It is also not possible, with the data provided to Revenue, to break these applications down into successful and unsuccessful applications.
The SRAs were designated by the Minister for Finance on the advice of the relevant city councils and an independent review by a third party advisor. Specific criteria were set down in respect of the areas which should be included within the remit of the LCI which were required to be taken into account by the relevant city councils when putting forward the proposed SRAs for each city. In particular, it was stated that these should be inner city areas which are largely comprised of dwellings built before 1915, where there is above average unemployment and which demonstrate clear evidence of neglect, dereliction and under-use. It was specified that areas which are generally regarded as affluent, have high occupancy rates and which do not require regeneration should not be included in the SRAs.
The LCI was reviewed as part of the Tax Strategy Group process in 2022. The review noted that the scheme is a very specific tax incentive, established in compliance with the Department of Finance’s Tax expenditure Guidelines, with the aim of encouraging businesses and home-owners back to the centre of Irish cities in order to preserve historic buildings in the special regeneration areas. I have no plans at present to extend the scheme to further areas.
285. Deputy Cian O'Callaghan asked the Minister for Finance the estimated number of properties that are eligible to pay the vacant homes tax; and if he will make a statement on the matter. [13955/24]
Amharc ar fhreagraThe Vacant Homes Tax (VHT) as announced in Budget 2023, 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. A residential property is in the scope of VHT, if it has been occupied as a dwelling for less than 30 days in a chargeable period.
The first chargeable period for VHT commenced on 1 November 2022, ending on 31 October 2023. The first self-assessed returns were due on 7 November 2023 and the tax was payable on 1 January 2024.
I am advised by Revenue that, as of 2 April 2024, the estimated number of properties that are eligible to pay vacant homes tax is approximately 3,500.
286. Deputy Steven Matthews asked the Minister for Finance the position regarding the recommendations of the Budgetary Oversight Committee's Report on the Section 481 Film Tax Credit; what efforts are being made to ensure Irish performers have the same contract terms as international performers in similar roles; if he is conscious of the need for productions operating in Ireland to comply with the Copyright and Related Rights Act 2000 and European Copyright Directive in order to avail of the tax credit; and if he will make a statement on the matter. [13972/24]
Amharc ar fhreagraI am aware of the contents of the Committee on Budgetary Oversight’s Report on Section 481 Film Tax Credit and that its recommendations cover a number of themes and policy areas for which responsibility lies across a number of Departments, and indeed, recommendations for action by the Committee itself.
With regard to the recommendations wholly or partially directed to my Department, Recommendation 13 suggested increasing the cap on eligible expenditure under Section 481; you will be aware that I announced an increase in the cap on eligible expenditure from €70 million to €125 million as part of my Budget 2024 speech and that, having recently received approval from the European Commission, this increase is now in effect.
With regard to Recommendation 14 for the establishment of a stakeholder forum, you will be aware that such a forum took place on the 8th of February this year, convened by the Department of Tourism, Culture, Art, Gaeltacht, Sport and Media (DTCAGSM). The forum was attended by a broad range of stakeholders which included representative bodies from the wider Irish audio visual sector, including unions, as well as government Departments and agencies. The focus of the day was on ensuring that everyone attending from the industry was given ample opportunity to voice their opinions. The event was chaired by an independent rapporteur, who also has responsibility for compiling a report on the discussions to DTCAGSM.
In relation to Recommendation 7 regarding intellectual property rights and Recommendation 8 regarding compliance with relevant copyright legislation, I would note that copyright law falls within the remit of the Department of Enterprise, Trade and Employment. Copyright is relevant for many workers in the film sector, including authors, producers and broadcasters in addition to performers and there are complex legal issues involved. As previously advised in parliamentary questions related to this subject matter, there is currently a body of work being undertaken in this space. An independent facilitator has been retained by Screen Ireland to meet with key stakeholders to understand and discuss issues raised through the implementation of the Digital Single Market Directive (Copyright Directive), and all stakeholders are engaging with this process with a view to identifying viable solutions where required. It is worth noting that copyright legislation applies regardless of whether it is referenced as part of the application process for section 481 or not.
Finally, I would also note that my officials continue to directly engage with all relevant representative bodies in the sector, including those representing crew, cast and producers, with a view to understanding the issues affecting the audio-visual sector.
287. Deputy Catherine Murphy asked the Minister for Finance the number of times each of the customs cutter boats of the Revenue Commissioners have been deployed since the start of 2022 to date in 2024, in tabular form; the plans the Revenue Commissioners have to expand the fleet of interceptor craft; if the Revenue Commissioners have experienced difficulty in recruiting officers for marine operations; and if he will provide a schedule of the items seized at sea in 2023 and to date in 2024. [13978/24]
Amharc ar fhreagraRevenue has primary responsibility for the detection, interception and seizure of prohibited and restricted products, including controlled drugs, at points of entry into the State including our territorial waters and adjacent seas. It maintains an enforcement presence at strategic locations and places particular emphasis on developing an intelligence-based focus at both national and regional level, deploying resources to areas of highest risk.
I am advised by Revenue that the role of its Maritime Unit, which has a national remit, is to provide maritime patrols and ensure compliance, carry out frontier controls, intelligence gathering, stakeholder liaison, vessel deep rummage capability and maritime-related expertise. This includes patrolling and monitoring internal waters, territorial seas and adjacent waters for the prevention, detection, interception and seizure of illegal importations and exportations of prohibited and restricted goods, including drugs. As well as patrolling at sea, Revenue’s Maritime Unit supports and works with land-based Revenue enforcement officers involved in anti-smuggling duties.
Revenue deploys two Revenue Customs Cutters (RCC), the RCC Suirbhéir and the RCC Faire, to patrol the coastline, undertake routine and intelligence led vessel controls and support maritime surveillance and intelligence gathering duties. The Cutters are crewed by Maritime Unit teams, each operating on a 24-hour basis for 8 days at a time. Maritime crews may operate at sea or on other maritime frontier-related activities, primarily at ports and harbours, depending on operational needs at a given time. Cutter teams were deployed for a total of 548 days in 2023 and 135 days to end-March 2024. Comparable figures are not available for 2022 due to a change in the manner in which statistics were recorded.
The Cutters are deployed to carry out and support multiple concurrent operations nationally. I am advised that some operations are single events, while others can span a number of months. This includes intelligence-led operations, surveillance operations, operations supported internationally, inter agency operations, as well as routine vessel controls. Vessels may be controlled at sea, at anchor or in port. Vessels may be controlled by officers attached to the Maritime Unit or by other Revenue enforcement officers working from ports.
The following table outlines the number of vessel controls carried out between 2022 and end March 2024:
|
- |
Total vessel controls by Revenue |
Vessel controls by Revenue Maritime Unit |
|
2022 |
732 |
634 |
|
2023 |
549 |
438 |
|
End March 2024 |
70 |
40 |
Revenue works proactively with An Garda Síochána and the Naval Service in the fight against drug trafficking as part of the Joint Task Force on Drugs Interdiction. There is excellent cooperation between these agencies in the sharing of intelligence and the identification and investigation of the criminals involved in the illegal drugs trade. The Maritime Unit also works closely with EU and international law enforcement partners, including MAOC(N) [Maritime Analysis and Operations Centre – Narcotics] based in Lisbon, where Revenue has a full-time country liaison officer. MAOC-N was established in 2007 as an initiative of seven western European countries (Ireland, Spain, Portugal, France, Italy, the UK and the Netherlands), focused on reducing the threat of drug trafficking into the EU by sea.
The following table outlines the number of items seized by, or with the support of, Revenue’s Maritime Unit in 2023 and to date in 2024. These figures include seizures where the Revenue’s Maritime Unit either seized the illicit product or played a significant supporting role in a seizure carried out by Revenue’s other frontier enforcement teams. The seizure may have taken place at sea, in ports or along the coast. These statistics do not reflect the contribution made by Revenue’s Maritime Unit to the seizure of illicit product by other international law enforcement agents acting on foot of intelligence provided by Revenue’s Maritime Unit.
|
01/01/2023 – 31/03/2024 |
Volume |
Estimated Value |
|
Drugs |
2,693 kg |
€188.5m |
|
Cigarettes/Tobacco |
460,145 cigarettes/21 kg tobacco |
€380,954 |
|
Beer/Spirits |
966 Litres |
€8,262 |
|
Weapons |
5 |
- |
|
CITES* |
8 |
- |
|
Conveyance |
1 |
- |
*Seizures under the Convention on International Trade in Endangered Species of Wild Fauna and Flora
I am advised that the RCC Suirbhéir, which is in service since 2004, is approaching the end of its service life and Revenue has contracted to purchase a replacement vessel. A contract for the delivery of the new Customs Cutter was signed on 3 August 2023 with AuxNaval in Spain. The new Cutter is expected to come into service in 2025. The contract includes an option for a second Cutter, which could be a replacement for RCC Faire in time.
Revenue has informed me that specific competitions for assignment to the Maritime Unit are run periodically and have provided a steady pool of officers. The most recent such competition was held in 2022 and was confined to applicants from within the Civil Service. An open recruitment competition for assignment to the Maritime Unit, providing opportunity to a wider pool of candidates, will be advertised in the coming months.
This Government has been consistent in its strong support for ensuring that Revenue has the necessary resources to fulfil its mandate in respect of functions that are critical for its effective functioning as a tax and customs administration and I remain open to considering any proposals from Revenue that will support its work in combatting fraud, illicit trade and smuggling.
288. Deputy Kathleen Funchion asked the Minister for Finance his plans to extend the help-to-buy scheme to second-hand homes; and if he will make a statement on the matter. [13993/24]
Amharc ar fhreagraHelp to Buy (HTB) is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive offers a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in Section 477C of the Taxes Consolidation Act 1997.
An increase in the supply of new housing remains a central and priority aim of Government policy. For this reason, HTB is specifically designed to encourage an increase in demand for new build homes in order to support the construction of an additional supply of such properties. For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not previously been used as a dwelling.
A move to include properties which were previously used as residential homes/second-hand properties within the scope of the scheme itself would not improve the effectiveness of the relief; on the contrary, it could serve to dilute the incentive effect of the measure in terms of encouraging additional supply. Extending the HTB scheme in this way would provide no incentive effect to encourage the building of new homes and would be likely to have a significant dead-weight element and a high Exchequer cost. For these reasons, there are no plans at present to extend the HTB scheme to include such properties.
289. Deputy Marian Harkin asked the Minister for Finance to detail in percentage terms (in tabular form, on 1 January for the year 2014 and the years 2020 to 2024 inclusive), each of the following taxes/levies where relevant (excise, NORA, carbon tax, better energy) on the pump price of a litre of petrol and diesel. [14053/24]
Amharc ar fhreagraFinance Act 1999 provides for the application of excise duty in the form of Mineral Oil Tax (MOT) to liquid fuels. MOT applies volumetrically which means that the amount of MOT charged is independent of the cost price of the fuel concerned. MOT comprises a carbon (MOTCC) and a non-carbon component (MOTNC). The carbon component, or carbon charge, is more commonly referred to as carbon tax. The non-carbon component of MOT is often referred to as “excise”, “fuel excise”, “fuel tax” or “fuel duty”. It is important to note that both components of MOT are excise.
Current MOT rates are available on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf. Historical MOT rates are available in the Accounting for MOT Tax and Duty Manual at www.revenue.ie/en/tax-professionals/tdm/excise/mineral-oil-tax-and-carbon-charges/mineral-oil-manuals/accounting-for-mineral-oil-tax-manual.pdf.
In response to the global energy crisis, temporary cuts to MOT rates on petrol, auto-diesel and marked gas oil were introduced in March 2022. Most of these cuts have now been reversed with the final stage of rates restoration scheduled for 1 August this year.
Under the National Oil Reserves Agency (NORA) Act 2007, NORA has responsibility for managing the State’s emergency stocks of oil. NORA collects a levy on oil disposals to fund its activities. The NORA levy is currently charged at a rate of two cents per litre on petrol and auto-diesel, having been temporarily reduced to 0.1 cents per litre from 12 October 2022 to 28 February 2023 to complement the MOT rate cuts introduced in response to the energy crisis.
In addition to MOT and the NORA levy, petrol and auto-diesel are subject to Value-Added Tax (VAT). VAT is charged on the full consideration, including all other taxes and levies. Petrol and auto-diesel are liable to VAT at the standard rate, currently 23%. VAT at 23% applied for all other periods concerned except from 1 September 2020 to 1 March 2021 when the standard VAT rate was 21%. Historical VAT rates are available on Revenue’s website at www.revenue.ie/en/vat/vat-rates/historical-vat-rates/index.aspx.
The following tables provide a breakdown of the taxes and levies applying to petrol and auto-diesel on 1 January 2014, and on 1 January 2020 to 2024 inclusive. Any discrepancies are due to rounding. Historical retail prices are taken from the EC Weekly Oil Bulletin at energy.ec.europa.eu/data-and-analysis/weekly-oil-bulletin_en.
|
Petrol/litre |
1 Jan 2014 |
1 Jan 2020 |
1 Jan 2021 |
1 Jan 2022 |
1 Jan 2023 |
1 Jan 2024 |
|
Pre-taxes/levies |
€0.66 (42%) |
€0.54 (38%) |
€0.41 (33%) |
€0.72 (43%) |
€0.79 (50%) |
€0.74 (44%) |
|
NORA Levy |
€0.02 (1%) |
€0.02 (1%) |
€0.02 (2%) |
€0.02 (1%) |
€0.00 (0%) |
€0.02 (1%) |
|
MOTCC |
€0.05 (3%) |
€0.06 (4%) |
€0.08 (6%) |
€0.09 (6%) |
€0.11 (7%) |
€0.13 (8%) |
|
MOTNC |
€0.54 (35%) |
€0.54 (38%) |
€0.54 (42%) |
€0.54 (32%) |
€0.37 (24%) |
€0.48 (28%) |
|
MOT Total |
€0.59 (38%) |
€0.60 (42%) |
€0.62 (49%) |
€0.64 (37%) |
€0.48 (31%) |
€0.61 (36%) |
|
VAT |
€0.29 (19%) |
€0.27 (19%) |
€0.22 (17%) |
€0.32 (19%) |
€0.29 (19%) |
€0.31 (19%) |
|
Taxes & levies |
€0.90 (58%) |
€0.89 (62%) |
€0.86 (67%) |
€0.97 (57%) |
€0.78 (50%) |
€0.94 (56%) |
|
Retail price |
€1.56 |
€1.43 |
€1.28 |
€1.70 |
€1.57 |
€1.68 |
|
Auto-diesel/litre |
1 Jan 2014 |
1 Jan 2020 |
1 Jan 2021 |
1 Jan 2022 |
1 Jan 2023 |
1 Jan 2024 |
|
Pre-taxes/levies |
€0.71 (48%) |
€0.57 (43%) |
€0.44 (37%) |
€0.74 (47%) |
€0.95 (56%) |
€0.82 (49%) |
|
NORA Levy |
€0.02 (1%) |
€0.02 (2%) |
€0.02 (2%) |
€0.02 (1%) |
€0.00 (0%) |
€0.02 (1%) |
|
MOTCC |
€0.05 (4%) |
€0.07 (5%) |
€0.09 (8%) |
€0.11 (7%) |
€0.13 (8%) |
€0.15 (9%) |
|
MOTNC |
€0.43 (29%) |
€0.43 (32%) |
€0.43 (36%) |
€0.43 (27%) |
€0.30 (17%) |
€0.38 (22%) |
|
MOT Total |
€0.48 (32%) |
€0.49 (37%) |
€0.52 (44%) |
€0.54 (34%) |
€0.43 (25%) |
€0.53 (31%) |
|
VAT |
€0.28 (19%) |
€0.25 (19%) |
€0.20 (17%) |
€0.30 (19%) |
€0.32 (19%) |
€0.31 (19%) |
|
Taxes & levies |
€0.78 (52%) |
€0.76 (57%) |
€0.74 (63%) |
€0.85 (53%) |
€0.74 (44%) |
€0.86 (51%) |
|
Retail price |
€1.49 |
€1.33 |
€1.18 |
€1.60 |
€1.69 |
€1.68 |
Section 100(5) of Finance Act 1999, which has been in place since 2012, relieves biofuels from the carbon component of MOT. The tables above list the full carbon tax rates (MOTCC) applicable to petrol and auto-diesel. For petrol and auto-diesel blended with biofuel, the carbon tax rates are reduced in proportion to the biofuel content.
290. Deputy Cian O'Callaghan asked the Minister for Finance what financial supports are currently available for disabled drivers and passengers for vehicle modifications; what recommendations were made in relation to this from the Transport Working Group’s final report published in February 2023; when these recommendations will be implemented; and if he will make a statement on the matter. [14056/24]
Amharc ar fhreagraThe Disabled Drivers and Disabled Passengers Scheme provides relief from VRT and VAT on an adapted car, as well as an exemption from motor tax and an annual fuel grant.
The Scheme is open to severely and permanently disabled persons as defined, as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Principal Medical Officer (PMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.
To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled by satisfying at least one of the following medical criteria that is set out in legislation, in order to obtain a Primary Medical Certificate:
• be wholly or almost wholly without the use of both legs;
• be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;
• be without both hands or without both arms;
• be without one or both legs;
• be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;
• have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.
My Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme (DDS) is no longer fit-for-purpose. The Government is considering proposals to replace the DDS.
The final report of the National Disability & Inclusion Strategy Transport Working Group's review of mobility and transport supports including the DDS, endorsed proposals for a modern, fit-for-purpose vehicle adaptation scheme in line with international best practice that would replace the DDS.
The Working Group was chaired by Minister Anne Rabbitte and led by the Department of Children, Equality, Disability, Integration and Youth (DCEDIY).
Access to transport for people with disabilities is a multifaceted issue that involves work carried out by multiple Government departments and agencies. Under the aegis of the Department of Taoiseach officials from relevant Departments and agencies are meeting to discuss the issues arising from the NDIS report and to map a way forward.
Department of Finance officials are proactively engaging with this group's work as an important step in considering ways to replace the DDS, as one specific personal transport response, in the context of broader Government consideration of holistic, multifaceted and integrated transport and mobility supports for those with a disability. Four meetings of the group have been held, in July, November, December 2023; and March 2024.
The Department of Finance submitted a note to the group with my approval in mid-January 2024. This note outlines a proposal for a replacement scheme for the DDS which would be a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual. This proposal is in line with what the National Disability Inclusion Strategy Transport Working Group Report endorsed. The note was considered at the March 2024 meeting.
In that context, any further changes to the existing DDS would run counter to NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.
Finally the Deputy should be aware that while my Department has oversight of the DDS, it does not have responsibility for disability policy, so any decision to put in place a new scheme to replace it will be a matter for Government.
291. Deputy Pearse Doherty asked the Minister for Finance to confirm if his Department received a submission in June 2022 from an organisation (details supplied) regarding the tax treatment of employer contributions to a PRSA; his views on the organisation’s view that “if the current BIK charge on employer PRSA contributions is removed and such contributions are no longer considered for tax purposes to be employee contributions, there is a risk that some companies could fund through tax deductible PRSA contributions at a level higher than they currently can to an OMA, given that PRSAs are not benefit limited like OMAs”; the reason the proposals provided by the organisation to address this risk were not implemented; and if he will make a statement on the matter. [14117/24]
Amharc ar fhreagraSection 22 of Finance Act 2022 removed the difference in treatment between PRSAs and occupational pension schemes in relation to the funding rules, by abolishing the Benefit-in-Kind (BIK) charge on employer contributions to an employee’s PRSA. In addition, employer contributions to an employee’s PRSA are no longer counted towards an employee’s age related and salary percentage limits on tax deductible contributions. These changes were recommended by the Interdepartmental Pension Reform and Taxation Group (IDPRTG) with a view to improving and simplifying the pension landscape in Ireland.
I can confirm that my Department did receive a paper from the organisation referenced by the Deputy in summer 2022 which related to the relevant recommendation of the Interdepartmental Group on Pensions and Tax Reform: “The differential treatment of PRSAs for funding purposes should be abolished and employer contributions to PRSAs should not be subject to BIK” .
When considering the appropriate way to implement the IDPRTG recommendation, removing the BIK limits for PRSAs was examined in detail, and the paper referred by the Deputy fed into these considerations.
As PRSAs do not require employer contributions and are not subject to the two-thirds final salary funding limit that is imposed on OPSs, it was clear that removal of BIK for employer contributions would result in PRSAs having less restrictions on employer contributions, albeit still subject to the overall tax relieved limit of €2 million (the Standard Fund Threshold).
Some alternative options were explored: an additional separate BIK limit for employer contributions to PRSAs; and a new PRSA product mimicking the salary-based limits on occupational pension schemes, to be used where an employer wished to make contributions to an employee’s PRSA. However, both these options were ultimately rejected.
While an additional BIK free limit for employee and employer contributions could result in an effective equalisation for most individuals, given the low levels of contributions, the rules for tax treatment of contributions would not be equalised and it was considered unlikely to be seen by stakeholders as meeting the recommendation of abolishing differential treatment of PRSAs. It would introduce new rules into an already complex legal and regulatory framework.
A PRSA product that tried to mimic the additional salary-based controls for OPS, in line with the submission referenced by the Deputy, would be the closest to complete equalisation of the tax treatment of contributions and was also considered. However, it was seen as over-complex, difficult to implement in practice and not aligned with the overall policy goal of simplification of the pension landscape.
Therefore, the decision was made to proceed with a proposal to fully remove the BIK charge for employer contributions to a PRSA in order to continue to work towards the overall goal of simplifying and harmonising the pension landscape.
In relation to tax planning, I am informed by Revenue that there is a continuous focus on compliance across pensions, identifying and confronting non-compliant behaviour across schemes. This is in line with Revenue’s Corporate Priorities 2024 commitment to comprehensively use the full suite of interventions set out in their Compliance Intervention Framework to assist voluntary compliance and to provide an appropriate response to non-compliance.
292. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue generated annually by carbon tax increases in each of the years 2025 to 2030 respectively, with respect to the carbon tax increases in each of those years and on a cumulative basis. [14119/24]
Amharc ar fhreagraIn July 2023 my Department published a paper examining the Potential Fiscal Impacts of the Transition to a Lower Carbon Economy in Ireland. The paper examined the potential fiscal impacts of current domestic climate action policies including commitments in the Climate Action Plan 2023 and the Programme for Government and is available online : www.gov.ie/en/publication/dd671-potential-fiscal-impacts-of-the-transition-to-a-lower-carbon-economy-in-ireland/.
The analysis provides an overview of the potential exchequer revenue which may be impacted either negatively or positively by current domestic climate action policies. The paper builds on previous work on green budgeting published in 2022 and uses a scenario analysis of policy measures on exchequer revenues between 2023 and 2030. Forecasted carbon tax revenue is included in this analysis and overall annual carbon tax revenue between 2025 and 2030 is estimated to be approximately €7.1 billion as set out below :
|
Projected Carbon Tax Annual Revenue (€millions) |
|||||
|
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
|
1,087.4 |
1,153.6 |
1,202.7 |
1,238.0 |
1,245.7 |
1,186.0 |
It should be noted that this analysis is a point in time exercise and forecasted revenue is estimated using forward projected estimates of energy use from the Environmental Protection Agency (EPA) and the Sustainable Energy Authority of Ireland (SEAI). It is anticipated that updated energy use data will be available from the SEAI in the coming months and the Department will use this data for further updated analysis on potential fiscal impacts arising from the climate transition.
293. Deputy Peadar Tóibín asked the Minister for Finance what safeguards he and his office are looking at for people whose mortgages have been sold to a third party from the originator bank (details supplied); and if he is looking into this matter or has a plan to tackle this added expense on ordinary families. [14136/24]
Amharc ar fhreagraThere is a robust consumer protection framework in place in relation to mortgages and other credit agreements. This regulatory consumer protection framework provides the same protections for all consumers, regardless of the regulated entity with whom they are dealing such as a bank, a retail credit firm or a credit servicing firm.
This framework seeks to ensure that all Central Bank regulated entities, including entities which service mortgages or which acquired the legal rights of the creditor under a mortgage agreement, are transparent and fair in their dealings with borrowers and that all consumers are protected from the beginning to the end of their mortgage life cycle.
In relation to interest rates, I am acutely aware of the general increase in rates and the impact this is having on some households. However, the formulation and implementation of monetary policy is an independent matter for the European Central Bank.
In addition, any decisions taken by mortgage creditors in relation to passing on wholesale interest rate increases is, subject to compliance with the terms of the mortgage contract in relation to the setting and adjustment of the interest rate, a matter for those creditors which are run on an independent commercial basis. I have no statutory function or role in such decision making matters by credit institutions or other mortgage entities.
However, I have met with the Banking and Payments Federation Ireland (BPFI), CEOs and senior representatives of all the main mortgage lenders and servicers. I made it clear that they should be fully aware of the significant challenges that some of their customers are facing at this time and that they should respond by assisting their customers who are experiencing difficulty.
In relation to customers’ ability to switch to another provider to avail of a more advantageous mortgage interest rate, I also highlighted that greater clarity should be provided to customers on the possibility of switching provider. This option should be fully supported by all mortgage entities, including the existing mortgage creditor.
Further, 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.
Arising from that meeting, the BPFI implemented a number of further initiatives by the mortgage industry. This included:
• a second phase of a ‘Dealing With Debt’ campaign to highlight new and existing supports for concerned mortgage customers;
• mortgage servicing firms and MABS to collaborate on an expansion of streamlined customer engagement framework; and
• the provision of initial eligibility criteria by the main lenders to provide clear guidelines for home mortgage customers of credit servicing firms who are seeking to switch their mortgage.
This means that there is now an agreed industry wide set of initial eligibility criteria to facilitate people switching their mortgage from a non-bank to a bank. Credit servicing firms have committed themselves to working with these criteria to support customers switching and to ensure they are aware that they may have options to switch their mortgage.
Furthermore, in response to the impacts that increases in interest rates and the cost of living more generally are having on mortgage holders, Budget 2024 provided a mortgage interest tax relief. This is granted by way of a tax credit for home owners with an outstanding mortgage balance on their primary dwelling house of between €80,000 and €500,000 as of 31 December 2022.
The relief is now available in respect of the increased interest paid on the mortgage in the calendar year 2023 as compared with the amount paid in 2022 at the standard rate of 20% income tax.
Also, the Central Bank will continue to engage with regulated firms to ensure that actions meet the Bank’s expectations and all industry participants are extending themselves to support consumers in difficulty.
294. Deputy Jackie Cahill asked the Minister for Finance if his Department uses community radio for advertising and public awareness campaigns; if not, the reason, given the vital role community radio often plays in the dissemination of information to local communities; if his Department will consider using community radio for public awareness campaigns in the future; and if he will make a statement on the matter. [14164/24]
Amharc ar fhreagraThe work of the Department of Finance does not involve paid advertising campaigns on any media platforms or formats.
295. Deputy Michael Healy-Rae asked the Minister for Finance to make a statement regarding restoring the tourism VAT rate to 9% (details supplied). [14216/24]
Amharc ar fhreagraAs the Deputy will be aware the 9 per cent VAT rate applied on a temporary basis to the hospitality and tourism sectors until 31 August 2023 when it reverted to the 13.5 per cent rate. The 9 per cent rate was introduced on 1 November 2020 in recognition of the fact that the tourism and hospitality sectors were among those most impacted by the public health restrictions put in place throughout the pandemic.
The economic rationale for a VAT rate reduction at that time as it was in 2011 when it was also reduced to 9 per cent was to lower consumer prices, encouraging higher demand, more output and an increase in employment.
Despite facing numerous successive headwinds over recent years, the domestic economy has proven to be remarkably resilient. Looking ahead, as inflation eases, the real disposable income of households should recover and support consumer spending. As a result, households are on a stronger financial footing and this will support demand for contact-intensive services including the tourism and hospitality sectors.
In relation to employment, between the end of 2020 when the 9 per cent rate was re-introduced, and the third quarter of 2023, total economy-wide employment expanded from 2.3 million to reach a record high of 2.66 million, an increase of 17 per cent. The Q3 2023 Labour Force Survey indicated that employment in the accommodation and food service sector stood at 181,000.
It is noteworthy that 14 EU countries have a VAT rate of 12 per cent or higher on food services. Our nearest neighbour in Great Britain and Northern Ireland has a VAT rate of 20 per cent on food services.
It is important to remember that VAT reductions, even temporary VAT reductions, have a cost to the Exchequer. The estimated cost of the 9 per cent VAT rate for tourism and hospitality, from 1 November 2020 to 31 August 2023, was €1.2 billion. This represented a very substantial support by the Government to the hospitality and tourism related sectors.
The cost of a further temporary VAT reduction to 9 per cent for a full year is estimated to be €764m. Even where the measure is restricted to food and catering services, the estimated full year cost is €545m.
The Government wants to maintain a healthy and profitable environment for these sectors going forward. However, in making any decision in relation to VAT rates or other taxation measures, the Government must balance the costs of the measures in question against their impact and the overall budgetary framework.
In light of these points I have no plans to reduce the VAT rate for the tourism and hospitality sector to 9 per cent.
296. Deputy Michael Healy-Rae asked the Minister for Finance if he will consider reintroducing the VAT equalisation measure to stimulate car hire fleets and the possibility of pursuing a balanced approach to regulating the self-catering sector; and if he will make a statement on the matter. [14220/24]
Amharc ar fhreagraAs the Deputy may be aware, in Section 38 of Finance Act 2018 a partial repayment of Vehicle Registration Tax (VRT) was removed. It reflected the VRT charged on the VAT element of the vehicle. The relief was a legacy from 1993 when vehicle excise duty was being replaced by VRT, to ease the transition for car leasing and hire companies, by ensuring their costs didn’t increase under the new VRT regime.
By 2019 the original compensatory rationale for the scheme had passed and the application of the repayment scheme bore no relation to its original purpose. At the time of its removal the repayment cost the Exchequer over €20m a year.
In the interim there has been significant reform of the VRT regime. The environmental rationale has been strengthened significantly, with lower rates for low emission vehicles (7% for EVs and well-performing hybrids) and higher rates for high emission vehicles. If the sector is registering vehicles with average or below average emissions, the applicable VRT will be much lower than the rates in 2018.
However, I am aware of the car rental's sector on this issue and the matter will be examined as part of the normal budgetary process.
297. Deputy Catherine Connolly asked the Minister for Finance further to Parliamentary Question No. 142 of 1 February 2024, the status of the Disabled Drivers Medical Board of Appeal; the number of appeal hearings that have taken place since the Board recommenced its work; the number of outstanding appeals; and if he will make a statement on the matter. [14355/24]
Amharc ar fhreagraI have now formally appointed all five members to the new Disabled Drivers Medical Board of Appeal (DDMBA) and appeal hearings recommenced in the first half of December 2023.
I appreciate that it has taken longer than anticipated to get to this point. In this regard four Expression of Interest campaigns had to be run over 18 months to source the legislatively required five members. Officials have also had to re-negotiate new hosting arrangements with the National Rehabilitation Hospital following their withdrawal of services in February 2023.
As of 27 March 2024 there are 793 appellants on the waiting list. 283 appellants have been assessed since the appeals process recommenced. The Board has prioritised the waiting list using clinically-based criteria. The DDMBA are working to address the backlog as quickly as possible.
298. Deputy Louise O'Reilly asked the Minister for Finance his views on forecasted data taken from the Central Statistics Office earnings, hours and employment costs survey and using 2024 forecasts of wage growth of 5% as projected by the Central Bank and inflation of 2.9% as projected by the ESRI, all of which indicate two consecutive years of real wage decline, 2023 and 2024, projecting that workers will be worse off by the end of 2024 than they were in 2020. [14404/24]
Amharc ar fhreagraThe labour market continued to perform robustly throughout 2023, with the level of employment reaching a record high of 2.71 million in the fourth quarter. The continued momentum in the labour market has been remarkable with almost 90,000 jobs added over the course of last year and around 330,000 added since just before the pandemic. In line with this, the unemployment rate averaged 4.3 per cent in 2023, one of the lowest annual rates on record.
Tight labour market conditions supported wage growth last year. According to the CSO, employee compensation - on a per-employee basis - grew by 4.5 per cent in 2023. With HICP inflation averaging just over 5 per cent, this does imply a real wage decline. However, over the same period household disposable incomes, which takes account of other forms of income as well as the net impact of taxes and government supports, grew by 8.4 per cent, a real increase of over 3 per cent when inflation is taken account of. This shows the important role that government cost-of-living supports played in supporting households.
Looking ahead, wage growth is projected to remain robust in 2024, reflecting some catch up on the real wage declines seen in recent years. The public sector pay agreement and an increase in the national minimum wage will also support wage growth in 2024. With inflation expected to continue to ease over the near term, real wages are projected to return to growth this year, with workers regaining purchasing power. My Department will publish updated macroeconomic forecasts, including labour market and wage projections, as part of the Stability Programme Update next month.
299. Deputy Bernard J. Durkan asked the Minister for Finance if the Revenue Commissioners can issue updated tax credit certificate/tax free allowances in the case of a person (details supplied); and if he will make a statement on the matter. [14417/24]
Amharc ar fhreagraI am advised by Revenue that an amended Tax Credit Certificate, confirming tax credit and rate band allocations for 2024, was issued to the person concerned on 29 March 2024. Revenue have further advised that a refund of Income Tax/Universal Social Charge (USC) due for 2024, will issue in their upcoming payroll.
Should the person concerned require any further clarification they can contact Revenue online via MyAccount or by phoning the National PAYE Helpline on (01) 738 3636, Monday to Friday, 9:30am-1:30pm.
300. Deputy Jackie Cahill asked the Minister for Finance the way a person wishing to claim the favourite niece/nephew relief can meet the requirement to work the land of their aunt/uncle substantially on a full-time basis of at least five years prior to inheritance, on land that that has been zoned for development; and if he will make a statement on the matter. [14504/24]
Amharc ar fhreagraCapital Acquisitions Tax (CAT) is the tax that applies to gifts and inheritances. The relationship between the person who provides a gift or inheritance (the disponer) and the person who receives a gift or inheritance (the beneficiary) determines the maximum tax-free threshold (Group threshold) below which CAT does not arise.
Any prior gifts or inheritances received by a beneficiary since 5 December 1991 from within the same Group Threshold is aggregated for the purposes of determining whether any CAT is payable on a current benefit.
There are three tax-free Group thresholds:
• the Group A threshold (currently €335,000) applies, inter alia, where the beneficiary is a child (including adopted child, stepchild and certain foster children) of the disponer;
• the Group B threshold (currently €32,500) applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant of the disponer;
• the Group C threshold (currently €16,250) applies in all other cases.
Ordinarily, a nephew or niece of a disponer is entitled to the Group B Threshold of €32,500. However, I am advised by Revenue that the Capital Acquisitions Tax Consolidation Act 2003 provides for the application of the Group A Threshold (€335,000) where a nephew or niece of the disponer receives a gift or inheritance of certain business assets from the disponer and meets specific conditions in relation to working in that business. This is commonly referred to as “Favourite Nephew/Niece Relief”.
Favourite Nephew/Niece Relief will apply where:
• the nephew or niece has worked substantially on a full-time basis for 5 years prior to the date of the gift or inheritance for the disponer in carrying on, or assisting in carrying on, the trade, business or profession of the disponer, and
• the gift or inheritance consists of property that was used in connection with the business, trade or profession of the disponer.
A nephew or niece is not deemed to be working substantially on a full-time basis in the trade, business or profession of the disponer/company unless he or she works:
• more than 24 hours a week for the disponer, at a place where that business, trade or profession is carried on, or,
• more than 15 hours a week for the disponer, at a place where that business, trade or profession is carried on exclusively by the disponer, the spouse or civil partner of the disponer, and the nephew or niece.
I am advised by Revenue that the zoning status of land that is the subject of an inheritance should not impact on the availability of Favourite Nephew/Niece Relief provided that the conditions noted above are met.
Further information on favourite nephew or favourite niece relief is available on the Revenue website at www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/favourite-nephew-or-niece-relief/index.aspx.
