Written Answers Nos. 26-48
26. Deputy Brendan Smith asked the Minister for Transport if he will ensure that detailed consideration is given to the issues outlined by an association (details supplied) and to have same resolved without delay; and if he will make a statement on the matter. [18236/24]
View answerAs 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 (MFS) required by the Pensions Authority. The changes also aim to sustain the pension schemes into the long-term.
Regarding 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. The Department is still in the process of considering the draft SI 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. While original indications were that a judgement would be expected in the Autumn of 2022, the matter was deferred on multiple occasions, with the judgment being delivered on 19 April 2024.
In his judgement, Mr Justice Mark Sanfey found that both CIÉ and the 1951 Scheme members were obliged to provide funding to the pension scheme to resolve any solvency issues. Justice Sanfey instructed both sides to meet to consider and agree what orders should be made on foot of the judgment ahead of a hearing date on 3 May 2024. The Department continues to engage with CIÉ, and advisors in NewERA in relation to this matter.
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 aspect of Deputy's question related to "the timeframe for when an increase might be sanctioned" to CIÉ for direct reply. Please advise my private office if you do not receive a reply within ten working days.
27. Deputy Brendan Smith asked the Minister for Transport the funding allocated to local authorities in 2023 to carry out essential road and bridge improvement works due to flooding problems; the funding provided for such works in 2024; and if he will make a statement on the matter. [17845/24]
View answer28. Deputy Brendan Smith asked the Minister for Transport the funding allocated to Cavan County Council and Monaghan County Council in 2023 to carry out essential road and bridge improvement works due to difficulties caused by flooding; the funding that will be allocated to these local authorities for such works in 2024; and if he will make a statement on the matter. [17846/24]
View answerI propose to take Questions Nos. 27 and 28 together.
The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority, in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from Councils' own resources, which are supplemented by State grants for regional and local roads. The Department of Transport also emphasises to local authorities the importance of setting aside a contingency fund to manage unforeseen events such as severe flooding.
As outlined in the 2024 Regional and Local Roads programme which I released on the 15th of February this year, the Government is strongly committed to protecting the existing regional and local road network. This network is fundamental in connecting people and places across the country.
Ireland's regional and local road network spans over 96,000kms. The network requires significant funding to ensure it remains fit for purpose, safe and resilience. As such, €658 million was allocated to Regional and Local Road Grants in 2024, with approximately 90% of this funding being directed towards maintenance and renewal works. This represents an overall grant funding allocation increase of 5%.
Under the 2024 grants allocations, Monaghan County Council was allocated over €17 million for the maintenance and improvement of their regional and local roads network; this represents an increase of nearly €835,000 compared to their 2023 allocation. Cavan County Council was allocated over €18 million for the maintenance and improvement of their regional and local roads network; this represents an increase of nearly €630,000 compared to their 2023 allocation.
This funding will support both Monaghan and Cavan County Council in carrying out an extensive 2024 programme of maintenance and restoration works. In addition, the funding is earmarked to support various climate adaptation projects, bridge rehabilitation schemes and vital safety improvement works.
The planning and implementation of the annual programme of works is the responsibility of each local authority.
Under the National Development Plan, the Government prioritises carrying out targeted improvements to sections of the regional and local road network with €677 million earmarked over the 10-years until 2030. Road improvement projects can be proposed by local authorities for consideration for funding. All projects put forward must comply with the requirements of the Infrastructure Guidelines and the Transport Appraisal Framework. Each project will be assessed on a case-by-case basis, keeping available resources in mind. My Department continues to work closely with all local authorities.
29. Deputy Ged Nash asked the Minister for Transport for figures on the total spend for all forms of advertising in the years 2022 and 2023 in his Department; if figures can be provided on each Department’s spend on local media advertising (print and broadcast respectively, and broken down on that basis) for those years; if the Department used/uses an agency to place advertising; and if he will make a statement on the matter. [18402/24]
View answerThe Department of Transport uses advertising and public awareness campaigns to highlight public consultations, encourage behaviour change in favour of sustainable travel and to promote recruitment opportunities. In 2023, the Department launched its Your Journey Counts emissions-reduction campaign to encourage people to walk, cycle and take public transport.
The figures for my Department’s total advertising spending for the years 2022 and 2023 are given in the table below, along with the spending breakdown across local media:
|
Year |
2022 |
2023 |
|
Total Advertising Spend |
€122,097.66 |
€1,152,397.81 |
|
Local Print Spend |
€0.00 |
€95,876.33 |
|
Local Radio Spend |
€12,354.38 |
€207,280.83 |
My Department uses a media agency to place advertising, which has been contracted under a cross-Government procurement process. This ensures both value for money and that as wide an audience as possible is reached through various advertising channels, including broadcast, online, and outdoor advertising.
30. Deputy Martin Kenny asked the Minister for Transport if an individual update will be provided on the investment to support the ambition for development of the Border region on roads (details supplied); and if he will make a statement on the matter. [18403/24]
View answerAs Minister for Transport I have responsibility for overall policy and exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design, construction, operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Infrastructure Guidelines and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of these projects. I would note that the Department of Housing, Local Government and Heritage is the approving authority for the Narrow Water Bridge.
I can confirm that allocations of €8,748,000 for New Roads and €58,788,000 for Capital Investment - Protection & Renewal & Active Travel have been made to the six border counties of Donegal, Sligo, Leitrim, Cavan, Monaghan and Louth.
Noting the above position, I have referred your question to TII for an update on the projects listed. Please advise my private office if you do not receive a reply within 10 working days.
31. Deputy Martin Kenny asked the Minister for Transport if he will provide individual update on the investment in road projects (details supplied); and if he will make a statement on the matter. [18404/24]
View answerIn accordance with the provisions of Section 13 of the Roads Act 1993, each local authority has statutory responsibility for the improvement and maintenance of their regional and local roads. Works on those roads are funded from local authorities' own resources and are supplemented by State Road grants. The initial selection and prioritisation of works to be funded is a matter for the local authority.
Regional and local road funding grants are used predominantly for road pavement resealing and strengthening works, bridge rehabilitation projects, climate adaptation, safety measures, drainage works and community involvement schemes on less trafficked roads.
In addition to maintaining the road network, targeted improvements are also prioritised, including 12 strategic schemes identified in the National Development Plan. To date 7 of the NDP schemes have been completed including the Athy Southern Distributor Road (opened Oct 2023) along with the Portlaoise Southern Relief Road, Sallins Bypass and the Sligo Western Distributor Road and a further three projects are at construction stage, including the Tralee Northern Relief Road and the Shannon Crossing, Killaloe Bypass and R494 Upgrade schemes.
The planning and implementation of the projects is the responsibility of the relevant local authority.
|
Name of Project |
Current Status of Project (as per IG) |
Project Completion Date |
|
Sallins Bypass |
Construction complete. |
2021 |
|
Adamstown and Nangor Road Improvements |
Construction complete. |
2021 |
|
Portlaoise Southern Distributor Road |
Construction complete. |
2019 |
|
Shannon Crossing |
Implementation. |
2025* |
|
Laytown to Bettystown Link Road |
Construction complete. |
2021 |
|
Garavogue Bridge Scheme |
Pre-tender - Project Design. Planning and Procurement Strategy. |
2027* |
|
Dingle Relief Road |
Construction complete. |
2019 |
|
Athy Southern Distributor Road |
Construction complete. |
2023 |
|
Sligo Western Distributor Road |
Construction complete. |
2021 |
|
Coonagh to Knockalisheen Main Contract |
Post–tender - Final Business Case. |
2027* |
|
Realignment of R498 Nenagh/Thurles Road at Latteragh |
Pre-tender - Project Design. Planning and Procurement Strategy. |
2027* |
|
Killaloe Bypass/R494 Upgrade |
Implementation. |
2025* |
|
Carrigaline Western Distributor Road |
Not a Department of Transport funded project. |
N/A |
*Estimated Completion Date
32. Deputy Carol Nolan asked the Minister for Transport if his Department has at any time engaged the services of a company (details supplied) or allocated the company funding or support in any capacity; if he or his officials have engaged with personnel from the company; if so, the details of same; and if he will make a statement on the matter. [18454/24]
View answerI wish to confirm for the Deputy that my Department has not engaged with the company referenced.
33. Deputy Robert Troy asked the Minister for Finance if a favourable response will be given to extending the VAT exemption to counsellors and psychotherapists. [18160/24]
View answer36. Deputy Marc Ó Cathasaigh asked the Minister for Finance if he has received the submission from a body (details supplied) regarding a VAT exemption for counsellors and psychotherapists; if a VAT exemption will be forthcoming; the measures put in place by his Department to support counsellors and psychotherapists and to improve access to mental health supports for the public; and if he will make a statement on the matter. [18294/24]
View answerI propose to take Questions Nos. 33 and 36 together.
As the Deputies will be aware, the VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. Under our legislation the provision of medical care services by recognised medical professionals are exempt from VAT. This includes health professionals registered under the Medical Practitioners Act 2007, the Nurses and Midwives Act 2011, and those engaged in a regulated profession designated under Section 4 of the Health and Social Care Professionals Act 2005.
Statutory Instrument No. 170 of 2018 (Health and Social Care Professionals Act 2005 (Regulations 2018)) of 2 July 2018 designates psychotherapists and counsellors as a regulated profession and establishes the Counsellors and Psychotherapists Registration Board. Professional counselling and psychotherapy services provided by persons registered by this Board are exempt from VAT from the date of their registration. Where such services are supplied by a person who is not so registered (including where the services are provided by a person in advance of their being so registered) then the supply of the service is liable to the reduced rate of VAT, currently 13.5%.
Psychologists are listed as designated professionals in the Health and Social Care Professionals Act 2005, although the register of psychologists envisaged by that legislation has not yet opened. I am advised by Revenue that, because the supply of services by psychologists were exempt from VAT for many years prior to the 2005 Health legislation, that pre-existing exemption has been maintained pending commencement of the Psychologists register.
On 27 February 2019, the then Minister for Health, Simon Harris TD, confirmed the establishment of and appointment of members to the Counsellors and Psychotherapists Registration Board, under the Health and Social Care Professionals Act 2005 (amended) to regulate the professions of Counsellors and Psychotherapists. The thirteen members of the Counsellors and Psychotherapists Registration Board were appointed with effect from 25 February 2019.
Questions on the establishment of the Counsellors and Psychotherapists Registration Board and their progress in opening their register are a matter for my colleague, the Minister for Health.
I understand that officials in my Department have engaged with their counterparts in the Department of Health in relation to this matter and have advised them that the VAT exemption in question will apply from the date of registration by the Counsellors and Psychotherapists Registration Board.
34. Deputy Carol Nolan asked the Minister for Finance if he will extend the tax warehousing scheme for the farm and forestry contractors’ sector in Ireland, which has been the most severely impacted by the bad weather since September 2023 and now faces huge cashflow difficulties due to the late spring sowing season; and if he will make a statement on the matter. [18207/24]
View answer35. Deputy Claire Kerrane asked the Minister for Finance if consideration is being given to allowing an extension to the tax warehousing scheme for agricultural and forestry contractors, given concerns from the sector around financial and weather constraints on work activity in the agricultural and forestry contractor sector in Ireland; and if he will make a statement on the matter. [18258/24]
View answerI propose to take Questions Nos. 34 and 35 together.
The Tax Debt Warehousing Scheme was introduced in 2020 was introduced to provide vital liquidity support to businesses impacted by Covid-19 trading restrictions. The scheme allowed for the deferral of collection of certain tax liabilities relating to Period 1, the “Covid-19 restricted trading period”. The tax liabilities that could be deferred (or “warehoused”) were VAT, PAYE (Employer) liabilities, excess Temporary Wage Subsidy Scheme (TWSS) and Employment Wage Subsidy Scheme (EWSS) payments due to be refunded to Revenue by employers, and certain self-assessed income tax liabilities.
Period 1 was generally available up to 31 December 2021 although, for certain sectors (in particular entertainment, hospitality and tourism) which were subject to further COVID-19 trading restrictions, it was extended until 30 April 2022. As such, the period for which liabilities could be entered into the warehouse ended for all businesses almost two years ago.
Following the end of Period 1, businesses were afforded a period of 12 months (“Period 2”) during which there was no requirement to make any payment of the warehoused liabilities and no interest applied for the duration of Periods 1 and 2.
Period 3, the “reduced interest phase” runs from the end of Period 2, that is, either 1 January 2023, or 1 May 2023 for businesses which qualified for the extension, until the warehoused liabilities are paid in full or the customer otherwise exits the scheme.
Several changes have been made to the Scheme to assist businesses; for instance, a reduced interest rate of 3 per cent applied to warehoused debt in Period 3, however, on 5 February 2024, I announced that this interest rate would be reduced to 0 per cent. This change was made in light of the unique nature of the warehoused debt, and in order to further support otherwise viable businesses.
Furthermore, Revenue announced a significant extension to the Scheme in October 2022, in response to the challenging economic situation arising from the energy cost crisis. At that point, businesses with warehoused debt were due to either pay the warehoused debt or enter into a Phased Payment Arrangement (PPA) with Revenue by 31 December 2022 (or by 30 April 2023 for those in the extended scheme). Given the economic uncertainty at the time, Revenue extended this timeline to 1 May 2024.
Revenue will work with taxpayers and support them in managing the payment of the debt. Customers are not required to pay all of their warehoused debt by 1 May 2024, however, in order to avail of the 0 per cent interest and flexible payment options, they are required to engage with Revenue ahead of that date to make arrangements to pay the debt over an agreed period of time.
At end-March 2024, €1.65 billion remained outstanding in respect of 55,490 individual taxpayers. Approximately 70 per cent of customers with debts in the warehouse owed amounts less than €5,000. The bulk of the debt (€1.41 billion) was warehoused by 5,040 customers with outstanding balances greater than €50,000. As of 22 April 2024, Revenue has advised that there were 2,876 customers from the “Agriculture, Forestry and Fishing” sector availing of the Debt Warehouse with aggregated debt of €15.8 million, however it is noted that the categories under that heading do not align with farm and forestry contractors per se.
Revenue has confirmed to me that it is firmly committed to supporting viable businesses and has taken a flexible and pragmatic approach to the payment of warehoused debt having regard to the financial circumstances of each business and their capacity to pay. During the pandemic, Revenue made a number of changes to its online PPA facility to provide ongoing support to business experiencing cash flow difficulties. These changes include a reduced down payment to commence the arrangement, availability of an extended payment duration and, where necessary, the availability of payment breaks and payment deferrals if temporary cash flow difficulties arise during the term of the arrangement.
More recently, Revenue further streamlined the PPA application process for business by increasing the threshold to upload supporting documentation from €5,000 to €50,000, thereby reducing the administrative burden on business.
It remains a key condition of the scheme that businesses continue to file their current tax returns and pay current liabilities as they fall due. By doing so, businesses will benefit from the 0 per cent interest rate and flexible payment options available in respect of warehoused debt.
Revenue fully appreciates that there may be circumstances where businesses continue to experience cash flow difficulties, impacting either their ability to pay non-warehoused debt, or their ability to meet ongoing tax obligations on a timely basis. The advice remains that businesses should engage with Revenue as soon as such difficulties start to arise so that an agreed solution can be found.
In the case of a seasonal business, the option of a lower down payment and a payment break may be appropriate to alleviate the temporary cash flow difficulty for the business. These options can be considered on a case-by-case basis to suit the individual business circumstances and their capacity to pay, once the business engages with Revenue and submits their payment proposal. Revenue has a proven successful track record in supporting businesses with cash flow difficulties, by agreeing flexible PPAs that take account of the financial circumstances of each business and their capacity to pay.
37. Deputy John Paul Phelan asked the Minister for Finance if he will provide a list of the points-of-entry, that is, ports and airports, at which mobile x-ray scanners and sniffer dogs were deployed to over the past 12 months; and if he will make a statement on the matter. [18312/24]
View answerMobile x-ray scanners and detector dog teams, which are integral components of Revenue’s response framework targeting fraud, illicit trade, smuggling and organised crime, are just a component of a suite of resources, detection equipment and technologies deployed by it, in addition to the application of the comprehensive legal framework in place as set out in relevant tax and customs legislation. Intelligence development, electronic risk analysis tools, deployment of x-ray scan technology and maritime cutters are deployed as part of Revenue’s overall suite of measures.
Revenue keeps its operational requirements and arrangements regarding the deployment and use of detection technology and resources, including x-ray scanners and detector dog teams, under continuous review having regard to ongoing risk assessment of smuggling and criminal activities and evolving operational needs. I am satisfied with the risk-focused approach adopted by Revenue.
For operational reasons, I am advised by Revenue that it will not be providing the specific details requested.
38. Deputy Michael Healy-Rae asked the Minister for Finance if guidelines can be provided (details supplied); and if he will make a statement on the matter. [18367/24]
View answerThe guidelines for VRT Registration can be found at the following website:
www.revenue.ie/en/tax-professionals/tdm/vehicle-registration-tax/vrt-manual-section-01.pdf.
If the Deputy has a specific case he wishes to highlight I am happy to share any details he can provide with the Revenue Commissioners.
39. Deputy Ged Nash asked the Minister for Finance for figures on the total spend for all forms of advertising in the years 2022 and 2023 in his Department; if figures can be provided on each Department’s spend on local media advertising (print and broadcast respectively, and broken down on that basis) for those years; if the Department used/uses an agency to place advertising; and if he will make a statement on the matter. [18391/24]
View answerThe Department of Finance had no advertising spend in the years 2022 and 2023.
40. Deputy Carol Nolan asked the Minister for Finance if his Department has at any time engaged the services of a company (details supplied) or allocated the company funding or support in any capacity; if he or his officials have engaged with personnel from the company; if so, the details of same; and if he will make a statement on the matter. [18443/24]
View answerSince the Global Disinformation Index was established in 2018, neither my Department nor my officials have engaged the services of or allocated the company funding or support in any capacity.
41. Deputy Thomas Pringle asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he is satisfied that the structure and robust framework has been out in place for the operation of the Protected Disclosures Amendment Act 2022 as outlined by his officials at the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach in September 2021; and if he will make a statement on the matter. [18204/24]
View answerLegislation to protect workers who raise concerns about wrongdoing in the workplace has been in place in Ireland for some time and this year will mark ten years since the Protected Disclosures Act was enacted in 2014. This legislation was further enhanced by the Protected Disclosures Amendment Act 2022 (the 2022 Act) which commenced in full on 1 January 2023.
The 2022 Act broadens the scope of those who can report wrongdoing beyond employees to include volunteers, shareholders, trainees, board members and job applicants. It also imposes new requirements on employers as regards the operation of formal whistleblowing channels.
It also provides for the establishment of the new dedicated Office of the Protected Disclosures Commissioner, which began operations in January 2023. To help to ensure reports are heard by those best suited to act upon them, the Office of the Protected Disclosures Commissioner is there to help workers to direct reports of wrongdoing to the most suited regulatory body as well as having the power to investigate reports of wrongdoing if no suitable body can be found.
In addition, free, independent, advice on making a protected disclosure and on workers’ rights and protections under the Act is available from Transparency International Ireland’s Speak Up Helpline. This is an initiative supported by grant funding from my Department.
While Ireland has strong legislation in place protecting workers, what matters is how the legislation operates in practice and key to this is ensuring that reports of wrongdoing are handled with care and professionalism.
Statutory Guidance for public bodies was revised in November 2023 to assist leaders and managers in understanding their own requirements under the 2022 Act; in improving their internal processes in handling reports of wrongdoing; and in supporting the workers that make such reports.
This guidance also includes template procedures for organisations to consider when developing their own internal procedures and policies. While this guidance is to inform public bodies, it also contains information on best practices in the area and on legal requirements that will be beneficial to private sector organisations.
In 2017 my Department established a Protected Disclosures Advisory Group which comprises protected disclosures managers from all Government Departments and a range of public bodies and prescribed persons that handle large numbers of disclosures. The group meets regularly to discuss and promote best practice and raise awareness of any challenges arising from implementation of the 2022 Act.
My Department also facilitates regular Protected Disclosures training.
42. Deputy Aindrias Moynihan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the capital funding allocated to build the new Macroom Garda Station; the up-to-date position on the construction of the station; and if he will make a statement on the matter. [17786/24]
View answerOPW are currently undertaking the building of a Divisional Headquarters on behalf of An Garda Síochána (AGS) at Gurteenroe, Macroom, Co Cork
The accommodation is provided in a 2, 3 & 4 storey building around a secure courtyard with adjacent secure car parking on a green field site. The OPW are preparing tender documentation for Site Works and the Main Contractor and prequalification process for the Main Contractor is underway. The OPW are inputting as required, into the preparation of the Public Spending Code Preliminary Business Case being organised by AGS. Site works are anticipated to commence in Q3 2024.
As the project will be tendered soon, it is deemed commercially sensitive to release the cost estimate of the project at this stage. We will update the Deputy on costs once the contract has been awarded.
43. Deputy Ged Nash asked the Minister for Public Expenditure, National Development Plan Delivery and Reform for figures on the total spend for all forms of advertising in the years 2022 and 2023 in his Department; if figures can be provided on each Department’s spend on local media advertising (print and broadcast respectively, and broken down on that basis) for those years; if the Department used/uses an agency to place advertising; and if he will make a statement on the matter. [18397/24]
View answerThe information requested by the Deputy in respect of my Department for 2022 and 2023 is set out in the table below.
|
Year |
Total Spend on Advertising |
Spend on Local Media Advertising (Print) |
Spend on Local Media Advertising (Broadcast) |
Agency used to place advertising |
|
2022 |
€12,306 |
€3,152 |
Nil |
Yes |
|
2023 |
€54,909 |
€17,767 |
€24,131 |
Yes |
44. Deputy Carol Nolan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if his Department has at any time engaged the services of a company (details supplied) or allocated the company funding or support in any capacity; if he or his officials have engaged with personnel from the company; if so, the details of same; and if he will make a statement on the matter. [18449/24]
View answerI wish to advise the Deputy that my Department has not had any engagement with, or provided any funding to, the organisation in question.
45. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment if he intends to support the current scope of application of the EU Corporate Sustainability Due Diligence Directive, which would exclude the vast majority of Irish companies; and if he will make a statement on the matter. [18146/24]
View answer46. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment his views on the current lengthy approach to the transposition of the EU Corporate Sustainability Due Diligence Directive, which would delay the administering of justice; if he will commit to ensuring that the Directive is transposed into Irish law as soon as is possible; and if he will make a statement on the matter. [18147/24]
View answer47. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment if he will support the ‘value chain’ definition based on internationally agreed standards from the UN Guiding Principles on Business and Human Rights and the OECD guidelines and work to ensure that serious downstream human rights impacts are not excluded when it comes to transposing the EU Corporate Sustainability Due Diligence Directive into Irish law; and if he will make a statement on the matter. [18148/24]
View answer48. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment the steps he is taking to ensure that the financial sector in Ireland is held to account for its impact on human rights and the environment; and if he will make a statement on the matter. [18149/24]
View answerI propose to take Questions Nos. 45, 46, 47 and 48 together.
Ireland has consistently been supportive of the objectives of the proposed Directive on Corporate Sustainability Due Diligence (CSDD). I have been seeking to ensure that the proposal has ambition while striking the right balance of providing effective protections for stakeholders and ensuring that the measures to be implemented by companies are clear, proportionate, and enforceable.
At the outset, it is important to clarify that the proposal has yet to be formally adopted at EU level. The final compromise text was recently agreed by Council and I understand that sign-off by the European Parliament is expected at the plenary session this week. However, it is expected that the finalised Directive will not come into effect for a number of months.
In relation to the thresholds to determine companies in scope, I had supported the lower thresholds as set out in the original proposal. Despite the scaling back of the companies in scope to very large companies, it should be noted that such companies are key drivers of behavioural change not just in relation to their own extensive supply chains but also across the markets in which they operate.
The proposed directive provides for a two-year transposition period, which is not unusual for a Directive, in order to provide Member States with sufficient time to implement the proposals. Work is progressing within my Department to ensure that this proposal can be transposed in a timely fashion. However, it is important to point out that companies within scope are also likely to come within the remit of the Corporate Sustainability Reporting Directive (CSRD) with the first reports due under that Directive in 2025.
The original proposal, as published, had sought to address adverse impacts wherever they arise in the value chain, whether upstream (to source) or downstream (to end user). However, negotiations on this concept of a value chain were difficult and the compromise reached provided for a new concept of “chain of activities”. This encompasses both upstream and certain elements of downstream activity, i.e. distribution, transport and storage.
I considered that it was appropriate that the proposal applied to all sectors of the economy, including the financial sector. Obtaining agreement regarding the treatment of the financial sector proved to be one of the more challenging aspects of the negotiations. The final compromise provides for a review clause which requires the European Commission to submit a report within two years on how the financial sector due diligence measures could be incorporated into the CSDD.
