I thank the Minister of State, Deputy Chambers, for attending.
Nithe i dtosach suíonna - Commencement Matters
Tax Code
I thank the Cathaoirleach for selecting this Commencement matter. I welcome the Minister of State to the House and thank him for agreeing to deal with this simple Commencement matter.
I understand that, in his Budget Statement, the Minister for Finance agreed to extend the liability date of the residential zoned land, RZL, tax by one year to allow for the planned 2024 review of maps to take place and to afford the affected people a further opportunity to engage in the RZL tax process. Nowhere in his speech was there mention of the anomalies or difficulties, though. Perhaps doing so was not within his remit, but the Taoiseach has stated clearly on record in the Irish Farmers’ Journal, Agriland and other agricultural publications that there are anomalies in the scheme. Last year, all local authorities published their RZL maps and outlined the lands that would be zoned or subject to the new tax and that the final maps were to be in place by 1 December 2023. The Taoiseach has acknowledged that anomalies have arisen in cases where farmers who had sought the dezoning of their lands are experiencing difficulty doing so. The Taoiseach has promised to amend these anomalies.
It is outrageous that a full-time farmer who did not ask for his or her lands to be zoned would now be on the hook for a potential tax on them when they are being used actively for agricultural production purposes. I have spoken to fruit and horticultural farmers in north County Dublin who find themselves facing this anomaly. Farming organisations and rural Deputies and councillors have stated that the RZL tax will pose significant difficulties for farmers whose lands have been zoned as residential.
I am cognisant of the significant demand for land for housing – I sit on the Joint Oireachtas Committee on Housing, Local Government and Heritage – and we must bring lands into play, but there are different lands in different parts of the country. This scheme must have some regard for the fact that housing demands in the nodes of the greater Dublin area and the cities are somewhat different than they are in rural parts of, for example, Roscommon and Donegal. This difference has not necessarily been calibrated into the scheme.
There are farmers who, having sought their lands to be dezoned, have been refused by An Bord Pleanála. Indeed, some local authorities are also not supportive of having farmers’ lands dezoned.
There are particular issues pertinent to each of those and it would not be appropriate for me to go into them.
As the new tax has clearly been designed to give no exemption to farmland that is zoned residential, farmers who own such land will be liable for the 3% tax. That is totally unacceptable. Farmers who, in many instances, had zonings imposed on them are concerned about the viability of the farms now and the 3% tax scenario going forward. It should be borne in mind that it is not a once-off tax. Many members of the public do not understand that. It is a tax every year on farmland and that will erode profits and margins. Farmers are in business and it will also impact on their cash flow. That is some legacy for agriculture and agricultural land and it definitely needs to be reformed.
I am not here to advocate the scrapping of the RZL tax; rather, I am here to advocate reforms. The Taoiseach has indicated the need for such reform. I am calling on the Government to modify the residential zoned land tax to exclude farmland in cases where landowners sought for the land to be dezoned but the planning authority refused their dezoning applications. The Taoiseach has signalled his commitment to fix the issue and stated that genuine farmland must be excluded where it is actively being used for farm practices.
The RZL tax is universal. It is a one-size-fits-all tax and that is the problem. It does not take into account specific housing needs per county or housing demand or viability. There is a need for reform. I am not here to advocate the abolition of the residential zoned tax but it is a crude instrument and does not work. It is a universal tax but it will not work for everyone. The Irish Farmers Association and the Irish Creamery Milk Suppliers Association, along with other farming bodies and communities, have lobbied the Minister of State's party and others in respect of this issue. There is room for reform.
I thank the Senator for tabling this Commencement matter, which I am taking on behalf of the Minister for Finance. The residential zoned land tax, RZLT, is a new tax introduced in the Finance Act 2021 which seeks to increase housing supply by encouraging the building on lands that are suitably zoned and appropriately serviced. It aims to bring forward for housing land that has benefited from State investment in services and is capable of being developed. The tax is an action contained in Housing for All, the Government's plan to increase housing supply, and is supported in the programme for Government.
The annual tax will apply at a rate of 3% of the land's market value and will operate on a self-assessment basis. In order to be liable for the tax, the land must be suitably zoned and serviced. Suitable zoning in the context of the RZLT refers to land that has been zoned by the relevant local authority for residential development. This includes zonings that are solely or primarily for residential development or for a mixture of uses, including residential development. Suitably serviced means where it is reasonable to consider that the land in question has access to, or is connected to, public infrastructure and facilities. This includes roads and footpaths, public lighting, foul sewer drainage, surface water drainage and water supply. These are the services considered necessary for dwellings to be developed. Such services must have sufficient capacity available for residential development. In order to be liable for the tax, the land must meet both of these criteria.
The development and implementation of the RZLT involves the Department of Finance, the Department of Housing, Local Government and Heritage and the 31 local authorities. Following the first liability date for the tax, it will be administered and collected by the Revenue Commissioners. Initial draft RZLT maps were published by local authorities on 1 November 2022. The purpose of the draft map was to allow landowners to see if their land is within the scope of the tax. Landowners had an opportunity to make submissions regarding the inclusion or exclusion of land on the maps up to 1 January 2023. Landowners also had an opportunity to request a variation of the current zoning of their land up to this date. Local authorities issued determinations in respect of submissions made on the draft maps by 1 April 2023. Landowners dissatisfied with such determinations had until 1 May to make an appeal to An Bord Pleanála. It is important to note that landowners will not have to pay the RZLT if they own a dwelling that appears on the local authorities’ RZLT maps but is also subject to the local property tax.
This tax measure is a key pillar of the Government’s response to address the urgent need to increase housing supply in suitable locations. It is acknowledged that the tax will impact on landowners and it is important that those affected have sufficient opportunity to engage with the mapping process and that a fair and transparent process is applied when local authorities consider what land should be placed on the RZLT maps.
Therefore, as part of budget 2024, the Minister for Finance announced his intention to extend the liability date of the tax for one year, from February 2024 to February 2025. The purpose of this deferral is to allow for the annual mapping cycle to complete and afford landowners another opportunity to make submissions if their land is included on the maps prepared by the 31 local authorities. The deferral will provide a further opportunity to landowners whose land will appear in a draft revised final map to be published on 1 February 2024 to request the rezoning of such land from the local authority in whose functional area of the land is situated.
I thank the Minister of State for that comprehensive response. I acknowledge and accept that this is a key pillar of Government policy in respect of bringing more land into active use for residential housing. I refer now to my only request. The Taoiseach is on record as saying he is proposing some changes to this tax. The RZLT is a universal, one-size-fits-all tax that does not take into account specific housing needs in each county or housing demand and viability in certain counties. This is the area of the scope I would like the Government to examine. It is not specifically mentioned in my matter, but this is my request today.
I again thank the Minister of State for his comprehensive response. This is helpful and will be beneficial to farmers. The extension for one year will give people more time, as the Minister of State rightly said, to make a stronger case. If their requests have been refused, they can now go back to their local authorities or An Bord Pleanála and make a case. It must, though, not be land left aside, not be land hoarding and not be land grabbing. We must put the focus on active land use and this is why I am here today. I thank the Minister of State for taking this matter.
I thank Senator Boyhan for his input on the RZLT. As I noted earlier, this new tax is one of a range of measures in Housing for All, the Government's housing strategy, and is intended to prompt the development of housing. While the demand for housing is greatest in urban centres, there is also housing need in many other parts of the country, as we are all aware. The zoning of land by local authorities reflects the housing need in an area and only residentially zoned and serviced land will be subject to this tax. I reassure the Senator of the Government's continued commitment to ensuring that affected landowners will have an opportunity to engage with their local authority as part of the annual mapping process. This is the purpose of the deferral announced by the Minister for Finance, Deputy Michael McGrath, in his budget speech. The Finance Bill is expected to be published shortly. It will set out in full the detail of the deferral announced by the Minister.
I understand that the Minister of State is here to take two further matters. With his indulgence and agreement, I ask that we let the Minister of State, Deputy Calleary, go ahead now and take the matter he is here to deal with. This will delay the Minister of State, Deputy Chambers, but, unfortunately, that is just how things have worked out.
Artificial Intelligence
I welcome the Minister of State, Deputy Calleary.
Cuirim fáilte roimh an Aire Stáit. As this question is about artificial intelligence, AI, perhaps at some stage in the future I will not need to call the Minister of State into this House. I might be able to use some AI-enabled device which will predict or give me the answers.
I know the Minister of State is deeply committed to ensuring that Ireland is prepared for the challenges and opportunities that AI and emerging technologies present. I am grateful for him having come to the House to talk about an update on Ireland's national AI strategy, AI - Here for Good, published two years ago. The Minister of State has appointed an AI ambassador and he is setting up an AI advisory council. These are welcome measures. We should go further and establish an Oireachtas committee specifically to look at AI and emerging technologies and how this development impacts on every area of Irish life. Not a day goes by without there being a news story about how AI is transforming some aspect of society or, indeed, the economy. Media outlets today are telling us about the AI-powered store at Dublin Airport, which is the first such store open to the public in Ireland.
I have been to one of these in the United States, and in terms of how it is transforming retail, it is quite an interesting experience. There was also a slightly worrying survey from the Institute of Directors this week which found that 75% of senior executives in Irish companies do not know how extensive the EU AI Act will be and the impact it will have on business. It is my view, and the Minister of State may share it, that the AI Act has the potential to be the most significant piece of European legislation this decade, impacting on how AI is utilised not just here in Europe but indeed globally. It is critical. The approach, broadly speaking, of the EU has been correct in setting out the varying series of risks that are involved but building in the whole concept of safety by design, thus placing the pressure on some of the companies from a very early stage to ensure AI is used for the best interests of humanity.
I share certain concerns as to whether the legislation may allow industry too much self-assessment around what could be classified as high-risk AI activity. It is critical, particularly around high-risk AI activity, that there is input from elected representatives and is not just industry making those decisions. We need to learn from a number of the mistakes we made in the regulation of social media while looking at the potential of AI. I welcome the fact there is talk of establishing a central EU AI office to ensure enforcement of the AI Act. I note, for instance, that Spain has launched the first EU AI agency responsible for regulating AI within that country. I suggest to the Minister of State that he may consider launching a bid, given the presence of so many tech companies here in Ireland and the very progressive stance the country has taken with the national strategy, to host the European Union's AI office here in Ireland. Given our important role as a centre for global technology, that would be welcome. AI has enormous potential. There are great opportunities but also challenges, and it is important the Government continues to take a progressive approach in this regard.
Gabhaim buíochas leis an Seanadóir as ucht an deis labhairt faoi intleacht shaorga, IS, sa Teach. I can assure him, given that my approach to AI is going to be person-centred, that there will always be a person standing in this spot to offer a response.
As the Senator knows, the national Al strategy, Al - Here for Good, has been in place for two years. We published a progress report on this strategy on 9 August 2023. The progress report highlighted many of the achievements thus far, including, as referenced by the Senator, the appointment of an Al ambassador, Dr. Patricia Scanlon, who is doing superb work and who has completed her first year in the role; the establishment of an enterprise digital advisory forum; the publication of the National Standards Authority of Ireland, NSAI, Al standards and assurance roadmap; and the establishment of Ireland's European digital innovation hub for Al, CeADAR, at UCD.
Priorities for the year ahead will include supporting businesses, enterprise and workers on Al adoption, as well as upskilling, reskilling and adapting. The Al innovation hub will also have a key role here. My Department will work closely with the Department of Public Expenditure, National Development Plan Delivery and Reform, on principles and guidelines for the use of Al in the public sector. Regulation is an enormous part of our approach, and influencing the regulation of Al in Ireland and internationally, in particular the development of the EU Al Act, will be a key priority.
The Senator has asked for an update on the Act. As he knows and has referenced, the Act aims to set out harmonised rules for the development, placement on the market and use of Al systems in the European Union. The proposed regulation aims to ensure the regulation of fundamental rights and user safety, as well as trust in the development and uptake of Al, thereby enhancing EU investment and innovation. The fourth inter-institutional trilogue meeting is scheduled for 24 October, and at this stage we are expecting an agreement on the regulation at the latest by spring 2024.
The team in Brussels is working hard to ensure that our priorities are replicated and that we get the file across the line within the time period. When we have the finalised Act we will publicise it and ensure there is awareness of what is in it, including its challenges and its potential. I take on board Senator Byrne's suggestion on the EU AI office.
The operational and practical impacts of the regulation will depend on the final outcome. We continue to monitor the developments. We will draft a regulatory impact assessment for the implementation and enforcement framework. We will ensure it is implemented coherently, with functions being assigned to the appropriate bodies in this jurisdiction.
Officials are actively involved in negotiations on the Council of Europe legal convention on AI. In November I will attend the UK summit on AI, which will be hosted by the Prime Minister Mr. Sunak in London. With the guardrails, and the work at government and industry level, we will ensure trust in AI and, most importantly, in turn we will support ongoing responsible innovation in AI on the island of Ireland.
I thank the Minister of State. I very much appreciate the work he and his officials are doing on this and his assurance that the approach of the Government in availing of AI opportunities will always be person centred. I am concerned at the level of awareness about the potential of AI and some of the challenges and threats. We need to communicate these more widely. I would welcome further discussion on an education and information campaign. There are always fears about new technology but in areas such as healthcare and transport AI could be transformative. An information campaign will be critical. We should not understate the potential impact of the AI Act. As the Minister of State said, it will set out the guardrails for the most amazing emerging technologies that will transform all of our lives. It is critical that we have a public debate. Having an Oireachtas committee specifically to explore these areas in the public space would be very welcome.
I agree with Senator Byrne. We are very aware of the challenges that will be presented by AI and by the regulation. We want to ensure balance, whereby the regulation puts in place the guardrails to which Senator Byrne referred but does not choke innovation in Ireland or Europe whereby we lose the experience of this innovation to other jurisdictions.
A key part of my work in the coming weeks will be the appointment of an AI advisory council. The role of this council will be to provide independent expert advice to the Government on AI policy, with a specific focus on building public trust and promoting the development of trustworthy person-centred AI. It will provide expert guidance, insights and recommendations. It will independently develop and deliver its own work plan. This work plan will provide advice to the Government on issues including the AI Bill and insights on trends, opportunities and challenges. Senator Byrne will welcome that another of its roles will be to engage in public communication to demystify AI and promote trustworthy, ethical and, most importantly, person-centred AI. I am confident I will be in a position to appoint this council in the coming weeks. We have had an overwhelming number of applications with people of great expertise interested in serving. We will put together a very good and independent council.
I thank the Minister of State for his time in the House. I know how busy he is.
Road Safety
I thank the Minister of State, Deputy Chambers, for coming to the Seanad today to respond to my Commencement matter, which is looking for an update on the commencement of the amendments to the Road Traffic and Roads Bill 2021. The Bill was passed in the Seanad in May 2023 and signed into law by the President in June 2023. The amendments to the Act seek to make our roads and public spaces safer and to tackle the scourge of the illegal and irresponsible use of motorbikes, quads and scramblers on public streets and in all shared spaces.
I come from Dublin Central and the Minister of State represents Dublin West. He knows that if we went to our constituencies right now, it would not be difficult to find irresponsible and illegal use of vehicles, including motor vehicles, quads, scramblers and motorbikes. Increasingly, those who are irresponsibly using the quads and motorbikes are of an age where they really need better supervision and support. Most importantly, our gardaí on the beat right across the city, county and country require amendments to the law to give them the power to make our roads and public spaces safer, and to remove from our public spaces and roads the irresponsible and illegal use of quads, motorbikes and scramblers. Specifically, the amendments would give powers to the gardaí to stop those who are using vehicles irresponsibly and to obtain their name, address, driving licence and date of birth. The amendments would give the gardaí the powers to ask the driver or operator of the vehicle to dismount or exit the vehicle. He or she could even be asked to leave the location in which they have been operating the vehicle. Most importantly, the amendments would give the gardaí the powers to enter a property where they believe vehicles are being kept or stored for illegal or irresponsible use. The amendments also create a penalty for such offences, including a fine of up to €5,000 or six months' imprisonment. These amendments give gardaí the right not only to seize vehicles, but also to keep them. If, after a period of time, the vehicles are not responsibly claimed and it is not possible for the owners to demonstrate that they will be responsibly managed, they can be disposed of and destroyed.
These are very important powers that we are aiming to give to our gardaí to tackle the scourge of illegal and irresponsible use of quads, scramblers and motorbikes in our public spaces. It is something that we, as a party, sought to have included in the programme for Government. We were glad to see it included. I commend the Minister of State and my colleagues in the Dáil, Deputies McAuliffe and Lahart, on their work on this. Like the Minister of State and the Deputies, I am aware that in the Cabra Community Policing Forum, the Finglas Safety Forum and in community forums right across the city and in other parts of the country, communities have asked the Government and politicians to help our gardaí to tackle and remove the scourge of illegal and irresponsible use of quads, motorbikes and vehicles. They want safe streets, parks and public spaces. They want our young people to be protected from such activity.
I hope the Minister of State can give the House an update on the enactment of these amendments to the road traffic legislation and how the powers are being used by An Garda Síochána.
I thank Senator Fitzpatrick for raising this important matter. I know she has been working on it for many years with Oireachtas colleagues.
As the Senator is aware, the Road Traffic and Roads Act 2023 was signed into law by the President on 23 June last. This is wide-ranging legislation that introduces enforceable variable speed limits. It creates a new public body, namely, Zero Emissions Vehicles Ireland. It also introduces a new vehicle category of powered personal transporter to allow for the legal use of e-scooters on our roads. Furthermore, the Act allows for increased use of cameras to inform road safety and changes to the planning system to assist the roll-out of BusConnects.
To date, there have been two commencement orders signed into law, with work ongoing on preparing the remaining commencement orders and the regulations associated with these. One of the Act's provisions relates to increased enforcement regarding antisocial behaviour, such as the use of scramblers on the streets of our towns and cities. Senators will be aware that the use of scramblers and quad bikes has been a long-term and complex problem. Addressing it involves legislation coming under the remit of the Minister for Transport and also community initiatives under the remit of the Minister for Justice.
The 2023 Act provides the necessary tools to members of An Garda Síochána to tackle this issue. Specifically, there are three measures in the Act to address the matter of antisocial scrambler use. Under section 5(k), dangerous driving has become an offence everywhere. Previously, it only applied to public places. The new provision extends the right of An Garda Síochána to seize a vehicle being driven in a dangerous manner on private lands, for example.
Under section 5(p), An Garda Síóchána also has increased powers of seizure where a garda reasonably believes that a vehicle has been or is likely to be driven in a manner that is dangerous. They can require the driver to stop using the vehicle, to provide their name, address and date of birth and the vehicle can be seized. The final provision relating to antisocial use of scramblers is contained in section 11 (b), which creates a new power to prohibit or restrict the use of certain types of vehicles in particular places.
I am pleased to inform the Senator that a commencement order was signed into law on 31 July 2023, giving effect to all of these provisions and empowering An Garda Síochána to seize scramblers being driven in any place. Officials in the Department are now working on consulting with the relevant road safety stakeholders, including in the context of preparing a regulation under section 11 (b). It is important that these regulations have the desired effect, and that the correct areas and territories are targeted. I hope this response gives assurance and provides clarity to the Senator regarding the enforcement of road safety legislation and addressing the issue of antisocial scrambler use
Go raibh maith agat, a Aire. It is indeed welcome, not just to this House, but to communities and families across the city and, indeed, the country to know that this Government has enacted new laws giving new powers to An Garda Síochána to tackle the issue and seize and destroy vehicles that are being used in an antisocial manner.
It is really important that dangerous driving has become an offence everywhere, not just in public places, and that gardaí have increased powers of seizure. This is a significant step forward to tackle the antisocial use of scramblers. The power to prohibit or restrict the use of certain types of vehicles in particular places is also very welcome.
I want commend the Minister of State on the work he is doing to improve road safety for all users of our roads. The fact that these amendments now give powers to gardaí to seize scramblers and take direct and positive action is welcomed by my community and other communities across the country. I would appreciate if the Minister would update the House on the timeline for the introduction of the regulations under section 11 (b).
I thank Senator Fitzpatrick for her wider advocacy on this very important issue for many urban areas across Dublin and elsewhere. I am also glad of the opportunity to clarify the enforcement of road safety legislation regarding scramblers.
The Road Traffic and Roads Act 2023 is wide-ranging and has important implications in a number of areas. The Government agrees that the antisocial use of scramblers is an important issue. This is why we are glad to report to Senators today that provisions in the Act that empower members of an Garda Síochána to address this problem were commenced in July. As a result, dangerous driving is now an offence everywhere. This change empowers a member of an Garda Síochána to seize a vehicle being driven dangerously, even on private land. There are also increased powers of seizure where a member reasonably believes that a vehicle is being or is likely to be driven in a manner that is dangerous. This includes whether it is being driven in a manner that is dangerous to the driver. The vehicle can be seized.
The Act creates the power to restrict the use of certain types of vehicle such as scramblers in particular places. I am informed that officials in the Department of Transport are working closely with their road safety partners on these regulations in order to ensure they have the desired effect. It is anticipated that regulations under section 11(b) will be in place towards the end of November and, importantly, before Christmas, when there is typically an increase in the use of vehicles such as scramblers and quad bikes.
The introduction of these provisions will be a further enhancement of the enforcement powers of an Garda Síochána under the provisions already commenced. They now have the powers required to deal with many issues of antisocial scrambler use. From canvassing in my area last week, and as the evenings are starting to get darker again, I am seeing that uptick in complaints from residents about the wide-ranging issues of scramblers. The legislation will help the Garda to address this over the coming period. I thank the Senator for raising this issue.
I thank the Minister of State, and I thank Senator Fitzpatrick for raising that very important issue.
National Transport Authority
I thank the Minister of State for being here. It is really appreciated. It will not be a surprise to anybody listening in or to anyone in the Chamber, including the Minister of State, that I am speaking about the issue of public transport in Kildare. The population in Kildare has grown in a huge way in the past years. Many people who live in Kildare travel to Dublin for work and for other reasons. It is hugely important that we have the whole area of public transport right. I refer especially to the short hop zone that currently exists. Sallins is just over 10 km from Newbridge yet here is a minimum 57% differential between the price of someone travelling to Houston Station in Dublin from Newbridge and from Sallins. As a result, people in Newbridge and from the far side of Newbridge are bypassing Newbridge station. They are driving on the roads at a time when we are trying to encourage people to actually use public transport . They are travelling on to Sallins where the second car park is now full and people are trying to find other spaces. This is all because we do not have equity of pricing when travelling from Newbridge and from Sallins.
A motion I tabled in this House for extending the short hop zone, although it does not have to be in that name, to 50 km was accepted unanimously. As the Minister of State is aware, this has become Fianna Fáil policy. I am aware he is committed to this. I thank him for meeting with me, members of the community, public representatives and members of the lobby group that came together in relation to commuter strategy in order to try to ensure equity and fairness in the context of prices. A commitment was given by the National Transport Authority, NTA, that a fairer strategy on fares would be forthcoming. Initially, this was going to be in July then we heard it was going to be mid-September. It is now mid-October. People need to make decisions about whether they will buy annual tickets, and they will do so in the context of travelling to Dublin. It is very important that the announcement I expected to have been made at this stage is made in order that we have clarity in respect of costs. That is very important, not just for people who are working but also for students. In saying that I absolutely do want to welcome the extension of the 50% reduction in fares for students and that it is extended to those aged 23 to 25. It is really important, along with the other 20% reduction. Going forward, we must know the pricing and how that is going to work for the people I represent.
Along with that, of course, we need to have rural transport and urban transport linking in with our trains. At the moment we do not have a town bus. For people living on the other side of Newbridge, it is a 3 km walk or drive. For many people there is then the problem of getting up and taking car parking space. There is obviously a cost to that element also. We need a transport system which will connect people with our trains and with the service we provide.
Also in rural areas like at Athgarvan, Suncroft and Rathangan, they need to be able to access a type of public transport in order to get in and to use the public transport fares, be that bus or train. I appreciate the Minister of State's attendance here and I hope that he has some news for us with regard to the clarity which both myself and those I represent in south Kildare are looking for. I thank the Minister of State.
I thank the Cathaoirleach and Senator O’Loughlin for raising this important Commencement matter, and I welcome the opportunity to discuss this issue with Members of the House today. I also want to acknowledge the Senator's consistent advocacy for this on behalf of constituents and also in connecting the local campaign with the Government and with the National Transport Authority who are progressing this.
The Senator's question is on the implementation of the national fares strategy 2023 and how this will benefit commuters in south Kildare such as those residing in Newbridge and Kildare town, which are outside the short hop zone.
As the Senator knows, the Government is strongly committed to improving public transport services throughout the country by providing a cost-efficient and accessible public transport sector. This means that whether it is giving people a genuine alternative to car dependency, or a more integrated transport network, the Government's vision for the public transport network is ambitious.
In this context, under Budget 2023, the Department of Transport secured €563.55 million of funding for the public service obligation, PSO, and Transport for Ireland, TFI, Local Link services. More recently, the Department secured a €611 million funding package for the PSO programme under budget 2024. This includes funding for the continuation of the 20% average fare reduction on PSO services and an extension of the upper age limit of the young adult card initiative from 23 years-of-age to 25 years-of-age. It also includes funds for the continued roll-out of important transport projects throughout the country.
As the Senator will be aware as part of the programme for Government, we committed to review existing fare structures to ensure that public transport is as accessible as possible, supports the delivery of services, and incentivises off-peak travel.
I would like to clarify that it is the National Transport Authority which has statutory responsibility for the regulation of fares charged to passengers in respect of public transport services provided under PSO contracts. To this end, in its capacity as the fare regulator, on 27 April the NTA published a new national fares strategy 2023. This strategy follows the previous implementation of a simplified fares structure for Dublin, and proposes an approach that is more equitable, consistent, and easy to understand for passengers. This new approach will apply to fares on PSO services outside the Dublin metropolitan area and will complement the planned roll-out of public transport projects such as BusConnects and Connecting Ireland. I understand that the NTA does not intend to introduce changes to the existing fare structure until later this year following the full completion of a fare determination process.
With regard to the specific impact of the new national fares strategy 2023 on commuters in south Kildare who are outside of the short hop zone, I understand that the strategy includes the creation of a new Dublin commuter zone, which will apply to those areas. In effect, this means that for commuters travelling from the Dublin commuter zone into the more central Dublin city zone, the lower of the following fares will apply: the national fare structure i.e. boarding charge plus an incremental fare based on the straight-line distance between the start and end stop of your journey; or the flat Xpresso Dublin city fare plus an incremental fare based on the straight-line distance between the start of your journey and the Dublin city zone boundary.
This approach will ensure that the cheapest fare is made available for passengers and will help alleviate boundary issues between the national and city fare structures. I am further advised that the NTA intends to finalise and publish this fares determination in the coming weeks, which is expected to include plans for implementation of the initial phase of the national fares strategy 2023. This will include the formalisation of new Dublin city and Dublin commuter zone boundaries simplified to Leap capping, along with changes to some Intercity rail and town bus fares.
Details of fare changes in the Dublin city and commuter area will be available in the fares determination when it is published.
I thank the Minister of State. I acknowledge the level of funding in terms of the package that has been received for 2024, which is significant. I also accept his clarification that the NTA has statutory responsibility for the regulation of fares. However, as I started off by saying, the short-hop zone in its current format disadvantages commuters living outside of the zone, particularly those in south Kildare, in Newbridge, in Kildare and further on. At this time they are still being disadvantaged until the fare differential is published. I take it from what he is saying that the Minister of State expects to that to happen within the next few weeks and that there will be an announcement thereafter in regard to new fares going forward. Has he any idea of the timeline? Time is moving and people need to be clear about what their output needs to be and the savings that they can make.
I wish to reassure Senator O'Loughlin that the Government is strongly committed to delivering a cost-efficient and sustainable public transport network and the review of existing fare structures has a key role to play in achieving those goals. The rationale for implementing the new national fares strategy is to remove the current inconsistencies in the existing fare structure which the Senator has highlighted. As we all know this can be frustrating for public transport users. She is correct when she says that when we engaged with many of her constituents and those involved in advocating for this change, it was clear the anomalies are not sustainable and do not promote the wider use of public transport for commuters. That is why in such places as Kildare and other commuter zones this will have to change, and why it is a priority for us in the programme for Government. The objective of the strategy is to ensure that the cost of travel does not vary unduly depending on the route taken or the location in the country. The Senator has set out an example of why the current approach has to change. The objective is to ensure that the cost per kilometre travelled does not vary unduly and is related to a straight-line distance between the origin and destination of the journey rather than the route taken, and that the fares are consistent whereby customers can understand the fare being charged and how it relates to the journey being taken. We welcome the publication of the national fares strategy, which is the first step in the process. The publication of the fares determination will be made in the coming weeks. That is the next step in the process to provide clarity of the level of change regarding the revised distance-based fares. I trust this clarifies the current position with regard to the implementation of the national fares strategy and how it will benefit many of the commuters and constituents in south Kildare. I appreciate the Senator's advocacy on this issue over the past number of weeks and months. There will be progress for commuters in south Kildare.
I thank the Minister of State. Senator O'Loughlin has raised a very important issue. It very much affects the people in County Clare because we do not have a short hop zone. I look forward to the process that the Minister of State has outlined. It will make a real difference to people's lives. I apologise to the Minister of State for the confusion at the beginning of his time here. We appreciate his time. We know how busy he is. We commend him on the great work he does on road safety and other areas within his brief.
Cuireadh an Seanad ar fionraí ar 1.53 p.m. agus cuireadh tús leis arís ar 2.01 p.m.
Sitting suspended at 1.53 p.m. and resumed at 2.01 p.m.