Written Answers Nos. 61-80
61. Deputy Frankie Feighan asked the Minister for Finance if his attention has been drawn to the specific issues with the wage subsidy scheme and the attempts of a person (details supplied) to now reopen their businesses post Covid-19; if he will draw the attention of the Revenue Commissioners to the issue; and if he will make a statement on the matter. [5620/20]
View answer74. Deputy Steven Matthews asked the Minister for Finance if his attention has been drawn to an issue that has arisen for some employers in accessing the temporary wage subsidy scheme in which employers that rehired staff previously let go after 1 May 2020 seem to be unable to qualify for a refund; if these employers will be refunded; and if so, the timeframe that businesses can expect for this. [5881/20]
View answer77. Deputy Fergus O'Dowd asked the Minister for Finance if a reply will issue to concerns raised in correspondence from a person (details supplied) in respect of possible problems in creating the necessary supports for businesses to restart operations; and if he will make a statement on the matter. [5897/20]
View answer108. Deputy Dara Calleary asked the Minister for Finance the reason employees rehired after 1 May 2020 will not be eligible for refunding under the wage subsidy scheme despite the reopening plan only being published at 7pm on 1 May 2020; if his attention has been drawn to the fact that employers could not have rehired prior to that due of the lack of knowledge prior to that time; his views on whether such a limitation will leave persons on the pandemic unemployment payment in spite of the wish to move persons from this payment to the wage subsidy scheme; and if he will make a statement on the matter. [6426/20]
View answerI propose to take Questions Nos. 61, 74, 77 and 108 together.
The Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020. Of necessity, the legislation and the scheme itself were developed very quickly to support the urgent Government objective of getting much needed assistance to employers and employees that have been seriously affected by the pandemic.
The TWSS builds on data returned to Revenue through its real-time PAYE system. The changes to Revenue’s systems required to fully implement the TWSS have been delivered incrementally since the scheme commenced on 26 March 2020. The latest phase of the scheme implements the revised subsidy rates, as determined by me, in accordance with the legislation and is effective from 4 May 2020 for most employees. This phase is based on providing employers with details of the maximum personal subsidy amount to be paid to individual employees based on their previous average net weekly pay.
Revenue advise me that it is aware of the difficulty for employers in accessing TWSS in respect of staff that were rehired after 1 May 2020 and has assured me that it is not related to ceasing employees from the scheme. The implementation of the latest phase of TWSS required a series of calculations to be performed for each employee that was on employers’ payrolls on 1 May 2020 in order to generate their personal wage subsidy entitlements. Employees who were rehired after 1 May 2020 could not be included in these initial calculations and consequently Revenue is temporarily unable to provide the necessary personalised wage subsidy entitlements information to employers in respect of these persons.
I have been assured by Revenue that it is actively working on an IT systems development to facilitate access to TWSS for rehired employees. It is anticipated that the development will be implemented in the coming weeks and will be retrospective to the date of rehiring.
62. Deputy Mary Lou McDonald asked the Minister for Finance if, further to the Revenue Commissioners announcement of 24 April 2020 allowing access to temporary wage subsidy scheme for certain employers that missed 15 March 2020 payroll deadline, those businesses granted access to the scheme will be paid retrospectively in respect of wages paid in the intervening period of the scheme opening and their access to it. [5629/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. The scheme builds on data returned to Revenue through its real-time PAYE system. It must be accepted that the underlying legislation and the scheme itself simply cannot be tailored to meet every individual unique set of circumstances for either employers or employees. The core principles of the scheme, as prescribed in the underlying law, are that the business is suffering significant negative economic impact due to the pandemic, that the employees were on the payroll on 29 February 2020 and that the employer had fulfilled its PAYE reporting obligations for February 2020 by, in general, 15 March 2020. These requirements of the scheme were critical safeguards against abuse and exploitation of the scheme.
I have been advised by Revenue that following a review of cases since the TWSS commenced, it became apparent that a number of employers had been unable to access the scheme because they failed the 15 March 2020 rule but had qualified under all other conditions of the scheme and are otherwise tax compliant. Given the overarching purpose and objective of the scheme, Revenue announced on 24 April, under its care and management provisions, to allow such employers access the scheme provided:
- the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020,
- the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and
- the payroll submissions for all previous months were submitted to Revenue before 15 March 2020.
Where a business qualifies for the scheme under the revised criteria and makes the necessary declaration that it is significantly impacted by the crisis, the wage subsidies under the scheme will be payable for eligible employees in respect of payroll submissions made on or after 24 April 2020, with a pay date on or after 24 April 2020. However, subsidies for the earlier period are not made retrospectively and there are no plans to alter this.
63. Deputy Frankie Feighan asked the Minister for Finance if concerns (details supplied) will be investigated; if there will be greater assistance in areas such as VAT and employer’s PRSI; and if he will meet with an organisation to discuss these issues. [5646/20]
View answerThe Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes - and it will pass – our people can get back to work as quickly and seamlessly as possible.
In addition to current support measures, my officials are examining a range of possible measures to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base.
65. Deputy Robert Troy asked the Minister for Finance if zero interest loan schemes for SMEs are being considered to bridge liquidity difficulties for businesses following the confirmation that banks can now borrow from the ECB at a negative rate of 0.75%. [5675/20]
View answerAs part of the Targeted Longer-Term Refinancing Operation (TLTRO), banks can borrow from the Eurosystem at favourable terms to incentivise eligible lending to businesses and households. As of 30 April, the Governing Council of the ECB has set the entry rate on the TLTRO programme to be -0.5%. The interest rate then decreases on a scale depending on developments in a bank’s eligible lending. The minimum rate on the borrowing can be as low as -1% if a bank exceeds its lending benchmark for eligible lending.
Access to TLTRO funding is available to banks across the euro area, including to Irish banks, but is optional and is a decision for a bank itself to make. Up to now, take-up from Irish banks in previous TLTRO programs has been limited. Importantly, the TLTRO program does not specify the interest rate at which the bank lending to business (or households) should take place. However, banks do not just use TLTRO to fund their activity. In practice they utilise a diverse range of funding sources, including consumer deposits, which are relatively more expensive for the bank compared to the funding available under TLTRO.
Neither the Central Bank of Ireland, the ECB, nor the Government plays a role in determining the interest rate on a loan from a private bank in Ireland. However, one would always expect a spread above borrowing costs to reflect various costs associated with lending, such as credit risk premia, operating costs including credit assessment, and the cost of equity. All of these factors are particularly high in the Irish SME lending market. Banks are also required to hold an adequate level of capital against SME lending this also contributes to the interest rates charged by banks.
Separately, banks are offering a payment break up to six months for business and personal customers affected by Covid-19. A payment break as a response to COVID-19 is not identified specifically on credit reports. If a lender agrees to a payment break with no payments at all, then no “missed payments” will be submitted to the Central Credit Register by the lender during this period.
The Government has put in place a suite of measures to assist SMEs during these difficult times. These include measures to help viable businesses access the liquidity that they require. There is a range of Government supports available through the Strategic Banking Corporation of Ireland. €200 million is currently available for COVID 19 affected customers through the SBCI COVID19 Working Capital Scheme. The Minister for Business, Enterprise and Innovation, Heather Humphreys TD, has recently announced the expansion of two SBCI Loan Schemes by €450m to provide an extra €250m for working capital and €200m for longer-term loans, bringing the total allocation to support liquidity in companies affected by the COVID-19 crisis to €650m. The SBCI also has existing supports in place that can help SMEs, including the Credit Guarantee Scheme, which has current lending capacity for SMEs. The Credit Guarantee Scheme supports lending through the provision of an 80% Government Guarantee for qualifying businesses. The Microfinance Ireland Loan Scheme has also introduced loans of up to €50,000 for micro-SMEs affected by COVID 19. The expansion of Microfinance Ireland funding by €13m to €20m for COVID-19 loans has also been recently announced with interest rates falling from 7.8% to 4.5%. The Government also recently announced a 2 billion COVID-19 Credit Guarantee Scheme to support lending to SMEs for terms ranging from 3 months to 6 years, which will be below market interest rates.
66. Deputy Robert Troy asked the Minister for Finance the details of each legislative change that will be needed for all items announced on 2 May 2020 (details supplied). [5676/20]
View answerIn respect of the measures to which the Deputy refers and for which my Department is responsible, I am advised by Revenue that the effective “warehousing” of VAT and PAYE (Employer) liabilities is currently operational. In March this year, Revenue announced that it was suspending debt collection and the charging of interest on late payment for the January/February and March/April 2020 VAT periods and the February, March and April 2020 PAYE (Employer) periods. On 7 May 2020, Revenue announced the extension of these arrangements to include the May/June 2020 VAT period and May and June 2020 PAYE (Employer) liabilities. These measures are being operated by Revenue on an administrative basis under the care and management provisions of the Taxes Consolidation Act 1997.
However, primary legislation will be required to put the measures on a statutory footing and to provide for the appropriate rate of interest to be changed on the warehoused debts, namely:
- 0% for the “Covid-19 restricted trading phase”, the period when the business is unable to trade due to the Covid-19 related restrictions, and including the first two months after the business resumes “normal” trading;
- 0% for the “zero interest” phase, which lasts for 12 months after the end of the first phase;
- 3% per annum for the “reduced interest phase”, which begins after the end of the second phase.
The necessary legislative amendments to the relevant provisions of the Taxes Consolidation Act 1997 and the Value Added Tax Consolidation Act 2010 will be brought forward in due course. Further information on tax debts warehousing is available on the Revenue website here.
The Deputy may wish to note that the establishment of the Ireland Strategic Investment Fund (ISIF) Pandemic Stabilisation and Recovery Fund will not require statutory amendment. ISIF will complete a revised investment strategy (under section 40 of the National Treasury Management Agency (Amendment) Act 2014) over the coming weeks.
I can also advise the Deputy that my colleague, the Minister for Business, Enterprise, and Innovation, will be bringing forward legislation to implement the €2 billion Credit Guarantee Scheme, which will support lending to SMEs for terms ranging from 3 months to 6 years at below market interest rates.
67. Deputy Cathal Crowe asked the Minister for Finance if banks are refusing mortgages to customers that are still employed but on the temporary Covid-19 wage subsidy scheme (details supplied). [5689/20]
View answerThe European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) provide that, before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness. The assessment must take appropriate account of factors relevant to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR also provides that a lender should only make credit available to a consumer where the result of the creditworthiness assessment indicates that the consumer’s obligations resulting from the credit agreement are likely to be met in the manner required under that agreement. The assessment of creditworthiness must be carried out on the basis of information on the consumer’s income and expenses and other financial and economic circumstances which is necessary, sufficient and proportionate. In addition, the Central Bank’s Consumer Protection Code 2012 imposes ‘Knowing the Consumer and Suitability’ requirements on lenders. Under these requirements, lenders are required to assess affordability of credit and the suitability of a product or service based on the individual circumstances of each borrower.
The Central Bank has indicated that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times, including during the COVID-19 pandemic. However, within the parameters of the regulatory framework as set out above, the decision to grant or refuse an individual application for mortgage credit is a commercial decision to be made by the regulated entity. A loan offer may contain a condition that the lender can withdraw or vary the offer if in the lender’s opinion there is any material change in circumstances prior to drawdown. In such cases, the decision to withdraw or vary the offer is a commercial decision for the lender. Neither the Central Bank nor I can become involved in such decision making.
Lenders have indicated that they continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. Customers should consult the BPFI’s COVID-19 Support FAQ on mortgages, or contact their lender directly, if they have any queries or concerns about the impact of COVID-19 on their mortgage application.
68. Deputy Sean Fleming asked the Minister for Finance if there is a delay in approving the grant for vehicles for transport under the drivers and passengers scheme during the Covid-19 crisis; and the reason for the delay in the case of a person (details supplied). [5793/20]
View answerI am advised by Revenue that there is currently no delay in processing applications under the Drivers and Passengers with Disabilities Scheme or the associated Fuel Grant Scheme. The processing of applications for the latter scheme is administered by Revenue on behalf of the Department of Finance, which makes the relevant payments.
Revenue has however confirmed that the changes introduced in the Finance Act to increase the rate of fuel grant, required some IT development work, which led to initial delays earlier this year.
An application for the Fuel Grant was received from the person in question on 15 January 2020. This application was processed and forwarded to the Department of Finance for payment on 2 March 2020 and was paid as part of the fuel grant payment process in March 2020.
69. Deputy Fergus O'Dowd asked the Minister for Finance if a reply will to issue to correspondence from a person (details supplied); and if he will make a statement on the matter. [5828/20]
View answerThe Government is fully aware of the unprecedented impact that the coronavirus is having on business and people’s livelihoods. In this regard a range of measures have been introduced to provide income support to those who need it while also giving confidence to employers to retain the link with employees so that when this crisis passes - and it will pass – our people can get back to work as quickly and seamlessly as possible.
In addition to current support measures, my officials are examining a range of possible measures to ensure that the economy is in a position to recover rapidly while maintaining a stable tax base.
70. Deputy Steven Matthews asked the Minister for Finance if his attention has been drawn to the fact that some mortgage providers are blocking any mortgage payment moratorium necessitated by job losses due to Covid-19; and if he will make a statement on the matter. [5867/20]
View answerAs the Deputy will be aware, the BPFI announced late last month that over 65,000 mortgage payment breaks had been granted since the cross-bank initiative was introduced. The members of the BPFI announced on 30 April, that a further three-month extension to the current payment break will be made available to customers that continue to be directly impacted by the fallout from the Covid-19 pandemic.
I have been advised by the Central Bank of Ireland (the Central Bank) that it continues to work with regulated entities to ensure the fair treatment of customers who find themselves in financial difficulties due to the exceptional circumstances of COVID-19. Payment breaks give borrowers affected by COVID-19 the opportunity to postpone or substantially reduce their repayments at a time of stress. It is clear that these payment breaks are necessary for many borrowers to enable them to deal with the immediate shock that they are experiencing. Through its ongoing engagement with the BPFI and the credit union representative bodies, the Central Bank is working to ensure that affected borrowers are supported through this unprecedented stress. The Central Bank expects regulated entities to clearly explain to their customers who wish to avail of a payment break, the implications of a payment break and all other existing protections that apply to borrowers facing financial difficulty, including forbearance, and to engage appropriately. Payment breaks should be a generally available option to affected borrowers, including those borrowers currently meeting the terms of alternative repayment arrangements. In this regard, regulated entities should ensure approaches are consistent with any existing arrears strategies and operations.
The Central Bank has emphasised that the provisions of the existing consumer protection framework, which is designed to ensure that consumers’ best interests are protected, particularly in times of financial difficulties, are in place.
If the customer is not happy with the way their financial institution is dealing with them, they can make a complaint to them and if they are not satisfied with the response received from them, the customer has the option to bring a complaint to the independent Financial Services and Pensions Ombudsman.
71. Deputy Aindrias Moynihan asked the Minister for Finance if the J9 stamp being used by the Revenue Commissioners to process the wage subsidy scheme will be treated as paid contributions for employees under the scheme; and if he will make a statement on the matter. [5868/20]
View answer114. Deputy Sean Sherlock asked the Minister for Finance if he is satisfied that the terms of the wage subsidy scheme are such that in circumstances in which a PRSI credit has been applied for the duration of the scheme by an employer in respect of an employee that the social protection or pension contributions of that employee are not diminished particularly when retirement of the employee will take place; and if he will make a statement on the matter. [6571/20]
View answerI propose to take Questions Nos. 71 and 114 together.
The Temporary Wage Subsidy Scheme (TWSS) is operational from 26 March 2020 for payrolls submitted to Revenue with a pay date on or after that date. For operational reasons, in order to claim the wage subsidy, employers must classify qualifying employees as PRSI Class J9 for the purposes of their payroll reporting obligations. Employer’s PRSI is reduced from 11.05% to 0.5% and no employee PRSI applies in the case of the employees in question.
I have already indicated in the House, in response to a question from Deputy Nash, that it is the intention of the Government to ensure that employees who are participating in the TWSS do not have their social insurance contributions adversely affected as a result of the use of the PRSI Class J9 arrangement. I understand that the Minister for Employment Affairs and Social Protection is looking at legislative proposals to address this issue.
72. Deputy Mick Barry asked the Minister for Finance if he will consider an adjustment to the Covid-19 wage subsidy payment to allow for more flexibility to include those workers that had just commenced employment in the weeks prior to the crisis; if the average wage calculation for those workers could be calculated on a period other than January to February; and if he will make a statement on the matter. [5871/20]
View answerThe legislation underpinning the Temporary Wage Subsidy Scheme (TWSS) is contained in Section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. Of necessity, the legislation and the scheme itself were developed very quickly to support the urgent Government objective of getting much needed assistance to employers and employees that have been seriously affected by the pandemic.
The TWSS builds on data returned to Revenue through its real-time PAYE system. It must be accepted that the underlying legislation and the scheme itself simply cannot be tailored to meet every individual unique set of circumstances for either employers or employees.
The core principles of the scheme, as prescribed in the underlying law, are that –
- the business is suffering significant negative economic impact due to the pandemic,
- the employees were on the payroll at 29 February 2020, and
- the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020
The changes to Revenue’s systems required to fully implement the TWSS have been delivered incrementally since the scheme commenced on 26 March 2020. The latest phase of the scheme implements the revised subsidy rates, as determined by me, in accordance with the legislation and is effective from 4 May 2020 for most employees. This phase is based on providing employers with details of the maximum personal subsidy amount to be paid to individual employees based on their previous average net weekly pay.
On 15 April 2020, I, as Minister for Finance, announced further updates to the TWSS. Included in the updates were measures to increase the wage subsidy for certain lower paid employees. In effect, for those employees with previous net pay of less than €586 per week, the amount of the temporary wage subsidy shall not exceed €410 per week in accordance with the following principles:
- an 85% subsidy shall be payable in the case of employees whose average net weekly pay does not exceed €412; and
- a flat rate subsidy of up to €350 shall be payable in the case of employees whose average net weekly pay is more than €412 but not more than €500.
In addition, where an employer wishes to pay a greater level of top-up, in respect of employees with net pay of less than €412 per week, in order to bring the employee’s pay to €350 per week, then tapering would not be applied to the subsidy.
These changes to the TWSS mean that more employees will now receive a subsidy of €350 per week, and those with previous net pay below €412 per week will now receive a greater level of subsidy.
These new rates have been fully operational for payroll submissions made on or after 4 May 2020, with a pay date on or after that same date.
The changes announced allow the concentration of resources to protect incomes, in a proportionate way having regard to available resources, employer contribution and the broader suite of COVID-19 related supports put in place by the Government.
Currently, I have no plans to change the average wage calculation to a different period.
73. Deputy Niall Collins asked the Minister for Finance if an application (details supplied) for the temporary wage subsidy scheme previously disallowed due to an administrative error will be reviewed; and if he will make a statement on the matter. [5875/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) is an emergency measure to deal with the impact of the COVID-19 pandemic on the economy. The underlying legislation and the scheme itself were developed within a very short timeframe to support the urgent Government objective of getting much needed assistance to employers and employees, where businesses have been seriously affected by the necessary restrictions introduced to fight the pandemic. The purpose of the scheme is to ensure that the relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once that is possible.
The TWSS builds on data returned to Revenue through its real-time PAYE System and is based on each employee’s average net weekly pay. The average net weekly pay is calculated from the information contained in payroll submissions reported by the employer to Revenue for January and February 2020 pay dates. The core principles of the scheme, as set out in the legislation are that:
- the business is suffering significant negative economic impact due to the pandemic,
- the employees were on the payroll at 29 February 2020, and
- the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020.
Revenue recently amended the 15 March 2020 eligibility deadline for the February payroll submission to ‘before’ 1 April 2020 under its care and management provisions. This concession applies where all earlier returns were submitted before 15 March 2020. These requirements are critical safeguards against abuse and exploitation of the scheme.
Revenue has advised me that the weekly payroll submissions for February 2020 in respect of the business in question were not received until 16 April 2020, which is outside of the revised ‘before’ 1 April 2020 deadline. Revenue has further confirmed that the January 2020 payroll submissions were also not received until 16 April 2020 and that over the course of 2019, payroll submissions were generally not received within the required deadlines.
Revenue further advise me that it is for these reasons that the business cannot access the TWSS and that it is not possible for Revenue to design systems that will allow entry to the scheme where the inbuilt eligibility thresholds have not been adhered to.
75. Deputy Steven Matthews asked the Minister for Finance if a case (details supplied) will be examined in which a company is unable to access the temporary wage subsidy scheme. [5883/20]
View answer82. Deputy Steven Matthews asked the Minister for Finance if the case of a company (details supplied) will be investigated. [5937/20]
View answerI propose to take Questions Nos. 75 and 82 together.
I am advised by Revenue that all cases which have applied for refunds under the Temporary Wage Subsidy Scheme (TWSS) and which were rejected on the basis of failing to meet the eligibility criteria are reviewed by Revenue.
The TWSS builds on data returned to Revenue through its real-time PAYE system. It must be accepted that the underlying legislation and the scheme itself simply cannot be tailored to meet every individual unique set of circumstances for either employers or employees. The core principles of the scheme, as prescribed in the underlying law, are that –
- the business is suffering significant negative economic impact due to the pandemic,
- the employees were on the payroll at 29 February 2020, and
- the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020.
Accordingly, the TWSS can only operate in respect of an employee, whether full-time or part-time, who was on the payroll of the employer as at 29 February 2020. Thus, where an employer has not met its statutory PAYE reporting obligations for February 2020 by 15 March 2020, then the employer is not eligible to participate in the scheme. These requirements of the TWSS were critical safeguards against abuse and exploitation of the scheme. PAYE legislation requires employers to report their payroll to Revenue in real time as the payroll is run. Thus, employers are obliged to report the tax and PRSI deducted from their employees’ wages in real time.
Arising from the ongoing review of specific cases since the TWSS started, I am advised by Revenue that it became apparent that a number of employers were unable to access the scheme because they failed the 15 March 2020 rule but had qualified under all other conditions of the scheme and are otherwise tax compliant. Given the purpose of the scheme to maintain the link between the employee and employer, Revenue decided, under its care and management provisions, to allow such employers access to the scheme, provided:
- the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020,
- the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and
- the payroll submissions for all previous months were submitted to Revenue before 15 March 2020.
Having regard to the particular circumstances of the case, involving a significant interruption caused by a suspected COVID-19 outbreak, following further engagement between the business concerned and Revenue, and in recognition of the positive compliance record of the business concerned, I am advised by Revenue that it approved the business for the purposes of the operation of the TWSS.
76. Deputy Sean Fleming asked the Minister for Finance when certificates in respect of an imported vehicle (details supplied) will be dealt with; and if he will make a statement on the matter. [5892/20]
View answerI am advised by Revenue that to register an imported used car, a person must bring the ‘foreign registration certificate’ or ‘certificate of de-registration’ (issued by the relevant registration authority in the other State) to the National Car Testing Service (NCTS) centre. In the context of the United Kingdom (UK), the required document is a ‘V5C’.
The procedures for registering a used vehicle and the documents required are clearly set out on Revenue’s website at www.revenue.ie/en/importing-vehicles-duty-free-allowances/guide-to-vrt/vehicle-registration-tax/procedure-at-the-ncts-centre.aspx and are also available on the NCTS website at https://www.ncts.ie/1155.
While the ‘V5C’ remains the key document for registration of a vehicle that has been imported into the State from the UK, Revenue may on a concessional basis, allow for alternative documentation to be presented in certain limited circumstances. Revenue has confirmed that it will make direct contact with the person in question to resolve the matter.
78. Deputy Denise Mitchell asked the Minister for Finance if his attention has been drawn to the practice of insurance companies requesting engineers' certificates before offering quotes to potential customers; the circumstances in which this practice might be appropriate; and if he will make a statement on the matter. [5907/20]
View answerI understand that the Deputy’s question is in relation to motor insurance. At the outset you should note that neither I, as Minister for Finance, nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so. Consequently, I am not in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of vehicles.
I understand that in making their individual decisions on whether to offer cover and what terms to apply, insurers use a combination of rating factors, such as the age of the driver, the age and type of vehicle, the relevant individual claims record and driving experience of the driver, the number of drivers, and how the car is used. Insurers will price in accordance with their own overall past claims experience.
With regard to the scenario in the Deputy’s question, I understand that there may be circumstances where an insurer may ask for an additional engineer’s certificate, for example if a vehicle has ever been modified or been repaired by an unofficial mechanic following an accident, etc.. While there may be a view that because a vehicle has a valid NCT certificate that such a report would not be necessary, it should be noted that insurers will generally require as a minimum that a car has a valid NCT in order to be covered. Accordingly, they will generally reserve the right to ask for additional information if they think it appropriate.
In summary, the requirements that insurers make of individual potential policyholders, and the prices they offer, differ across the market – which is why it is so important – as the Competition and Consumer Protection Commission website (www.ccpc.ie/consumers/money/insurance/) recommends, to “shop around” and “always get quotes from several insurance providers when you need to get or renew insurance”.
Finally, as you may already be aware, Insurance Ireland, the representative body for insurance providers in this country, operates an Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance, which can be accessed at: feedback@insuranceireland.eu.
79. Deputy Steven Matthews asked the Minister for Finance if the case of a company (details supplied) will be investigated. [5909/20]
View answerThe Government’s priority in commencing the Temporary Wage Subsidy Scheme (TWSS) is to ensure that all employers experiencing significant negative economic disruption from COVID-19 can receive support payments as quickly as possible. The purpose of the scheme is to ensure that the relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once that is possible.
TWSS builds on data returned to Revenue through the PAYE system and as such is a fully automated solution. The TWSS, which was developed in a very short timeframe in response to the pandemic is designed around the dates specified in the legislation. The legal timelines are that employees were on the employer payroll at 29 February 2020 and that the employer had fulfilled its PAYE reporting obligations for February 2020 before 15 March 2020. Revenue recently revised the eligibility conditions for the scheme under its care and management provisions, which extended the 15 March 2020 deadline to ‘before’ 1 April 2020. However, these concessionary arrangements can only operate for future payrolls and are not available on a retrospective basis for previous payrolls.
Revenue has advised me that the business in question could not previously access the TWSS because of amendments to its February payroll after 15 March 2020. However, the business has access to the scheme under the revised concessionary criteria. Revenue has confirmed to me that it has made direct contact with the business to clarify the position.
80. Deputy Charlie McConalogue asked the Minister for Finance if a response will issue to a matter raised by a group (details supplied); and if he will make a statement on the matter. [5917/20]
View answerThe Government greatly appreciates the additional efforts of essential workers, front line staff and all those working during this difficult time.
They are making a vital contribution to the State-wide response to the COVID-19 crisis.
However, currently, available resources are being focused on new initiatives to support those who are no longer in employment or who will have reduced income in the coming weeks and months as well as measures seeking to support employers in retaining staff on the payroll.
