Wednesday, 3 Jun 2020

Passport Services

Questions (26)

Frank Feighan

Question:

26. Deputy Frankie Feighan asked the Tánaiste and Minister for Foreign Affairs and Trade if all passports will be extended for the duration of 12 months due to Covid-19; and if he will make a statement on the matter. [8748/20]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

With the commencement of the COVID-19 public health emergency and the introduction of widespread travel restrictions both nationally and internationally, Irish citizens have ceased nearly all non-essential travel. This has led to a large decrease in the number of passport applications received by the Passport Service, including a decrease in applications received from applicants.

In response to this situation, the Passport Service is operating an essential, emergency service at this time. This has allowed us to both reassign staff to our consular services assisting our citizens abroad and redeploy staff to critical areas including contact tracing for the HSE and COVID-19 payments for Department of Employment Affairs and Social Protection, all critical services at this time.

The Passport Service continues to process emergency passports for our citizens at home and abroad. Almost 350 passports have issued to our citizens both at home and abroad in response to urgent requests. Our webchat service and a dedicated travel emergency mailbox continue to operate through which we can be contacted in such circumstances. In addition, our phones lines have answered over 16,000 calls from Irish citizens overseas as part of the Department’s response to the COVID-19 crisis.

The Passport Service staff cannot work remotely, they must be on site in order to process passport applications. This is to protect the personal data of the applicant and the integrity of the Irish Passport System.

The Global Irish Services Division of the Department is now focused on returning to a point when we can provide a full passport service. We will endeavour to do so as quickly as possible, while providing our staff with a safe working environment and in line with the Government’s Roadmap to reopen Ireland’s economy and society. The protection of staff is our first priority but we also recognise that providing passports is an essential public service. I encourage Deputies to stay in contact with my office for updates in relation to the Passport Service.

Discussions regarding travel documents have recently taken place at a European level, after which the European Commission decided not to recommend a coordinated extension of the validity of member state’s travel documents. Accordingly, Ireland has no plans at present for the validity of passports to be extended beyond their expiry date.

Question No. 27 answered with Question No. 23.

Ministerial Meetings

Questions (28)

Chris Andrews

Question:

28. Deputy Chris Andrews asked the Tánaiste and Minister for Foreign Affairs and Trade if he has spoken to the US Senate Majority Leader, Mr. Mitch McConnell to date in 2020. [9011/20]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

While the Government engages frequently with the US Administration and US elected representatives from across Congress, I have not yet had the opportunity to speak with Senate Majority Leader, Senator Mitch O'Connell, this year.

The Government has however had many opportunities to engage with high-level US officials, including during visits last year by President Trump, Vice President Pence and a Congressional delegation led by Speaker of the House of Representatives, Nancy Pelosi. We took these opportunities to discuss a range of issues, including Brexit and Northern Ireland developments, record two-way trade and investment, as well as Irish emigration to the US and the undocumented Irish.

In March this year, the Taoiseach travelled to Washington D.C. for St. Patrick's Day celebrations, where he had a range of engagements, including with President Trump. The Taoiseach was a guest of honour at the Speaker's St Patrick’s Day Lunch for the Congressional Friends of Ireland, at which Senate Leader McConnell also delivered remarks.

Question No. 29 answered with Question No. 16.

Consular Services

Questions (30)

Michael McGrath

Question:

30. Deputy Michael McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade if his Department will assist an Irish couple seeking to return home (details supplied); and if he will make a statement on the matter. [9082/20]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

My Department is aware of this case and is providing all possible and appropriate consular assistance to the citizens in question.

We have already assisted 170 of our citizens to return home safely from South Africa. Of the citizens remaining there, 70 have indicated an interest in returning home, including the couple in question. The Deputy will be aware that all international commercial flights remain suspended until such time as national public health authorities indicate otherwise.

Our consular officials are working closely with regional partners and with our UK and EU partners to secure places for our citizens on future repatriation flights, as and when available.

Domestic flights are expected to be reintroduced in Phase 3 of the current South African Government plans. While these are likely to be available only for business travel, we have suggested an alternative option for internal travel to the citizens in question.

I can assure you that we will continue to provide all possible advice and assistance to these and all other citizens in need in South Africa.

Question No. 31 answered with Question No. 16.

Brexit Negotiations

Questions (32)

Matt Carthy

Question:

32. Deputy Matt Carthy asked the Tánaiste and Minister for Foreign Affairs and Trade the contacts he has made with the EU and or UK Government officials regarding the ongoing post-Brexit trade talks; and if he will make a statement on the matter. [9193/20]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

Brexit remains a key issue for this Government. The Taoiseach, my cabinet colleagues and I take every opportunity to engage with our EU partners to advance Ireland’s priorities in matters arising from the UK's withdrawal from the EU, including the EU-UK future partnership negotiations, implementation of the Protocol on Ireland/Northern Ireland, and preparations for the end of the transition period.

My engagement with key interlocutors on Brexit issues has continued in recent months, including recent contacts with EU Chief Negotiator Michel Barnier, and with a range of EU Foreign Ministers. I have also spoken with Chancellor of the Duchy of Lancaster Michael Gove, Foreign Secretary Dominic Raab, and Secretary of State for Northern Ireland Brandon Lewis. This is in addition to the regular contact maintained between the Taoiseach, the Minister for Finance, and the Minister of State for European Affairs, with their counterparts across the EU and in the UK.

Officials from across Government are also continuing their work to make sure that Ireland’s voice is heard at the Future Partnership negotiations in line with the EU’s negotiating mandate and that work to implement the Protocol on Ireland / Northern Ireland is taken forward. Ireland has also participated, as part of the EU delegation, in the EU-UK Joint Committee and in Specialised Committees established under the Withdrawal Agreement, notably the Specialised Committee on the Implementation of the Protocol on Ireland and Northern Ireland.

Protecting Ireland’s interests during this phase will require a continued whole of Government effort underpinned by the same coherent, cohesive approach that has characterised our Brexit strategy from the start. We continue to work with the Taskforce and the Commission, our EU partners, and stakeholders across this island, to this end.

Company Closures

Questions (33)

Matt Carthy

Question:

33. Deputy Matt Carthy asked the Tánaiste and Minister for Foreign Affairs and Trade the contacts he or his officials had with or in respect of a company (details supplied) prior to or since the announced closure of the business; and if he will make a statement on the matter. [9194/20]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

I am aware of the situation to which the Deputy refers. I regret the closure of BD Foods, and the job losses that will result. The matter is one for my colleague, the Minister for Employment Affairs and Social Protection, and I have asked that it be brought to her attention.

Brexit Negotiations

Questions (34)

Brendan Smith

Question:

34. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the discussions he has had with the EU and the Secretary of State for Northern Ireland in relation to the establishment of an EU office in Belfast; and if he will make a statement on the matter. [9220/20]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

The Taoiseach, my cabinet colleagues and I take every opportunity to engage with EU partners and, as appropriate UK counterparts, to advance Ireland’s priorities in the context of the UK's withdrawal from the EU.

Over recent weeks, I have had contacts with EU Chief Negotiator Michel Barnier, UK Chancellor of the Duchy of Lancaster Michael Gove, and Secretary of State for Northern Ireland Brandon Lewis, including on matters arising from the implementation of the Protocol on Ireland/Northern Ireland. I have stressed the importance of ensuring the full implementation of the Protocol, as agreed.

The question of an EU office in Belfast was discussed at the EU-UK Specialised Committee on the Protocol on Ireland/Northern Ireland, which took place on 30 April. Ireland participated in this meeting as part of the EU's delegation.

Article 12 of the Protocol provides for EU representatives to be present for activities relating to the application and implementation of the Protocol.

I hope, and am confident, that agreement can be reached through the Joint and Specialised Committees on how the EU involvement envisaged in the Protocol can operate in an appropriate and sensible way.

Those EU-UK Committees provide the appropriate framework to reach agreement on this issue. In that regard I hope to see early and detailed technical engagement between the UK and the EU, in follow up to the UK paper published on 20 May.

Undocumented Irish in the USA

Questions (35)

Charlie McConalogue

Question:

35. Deputy Charlie McConalogue asked the Tánaiste and Minister for Foreign Affairs and Trade the progress to date in addressing the undocumented Irish in the United States of America; and if he will make a statement on the matter. [9293/20]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

The Taoiseach and I have prioritised the issue of Irish immigration in the United States since taking office and the issue of the undocumented Irish remains a high priority for the Government. We have both continuously raised immigration issues in interactions with the US Administration and political leaders, most recently by the Taoiseach during his St. Patrick's Day visit to the White House in March. The Government Envoy to the US Congress on the Undocumented, Deputy John Deasy, has also worked closely on this issue with this Department, engaging with key US stakeholders.

In the US, Irish officials continue to engage and advocate on behalf of this vulnerable community. Officials in my Department, including our Embassy in Washington, D.C. and our seven Consulates General across the US, are monitoring the situation closely and are continuing to actively support Irish community groups that work with undocumented Irish citizens. They engage with US officials on immigration issues on an ongoing basis, including with US Immigration and Customs Enforcement. Our Mission network also works closely with the Coalition of Irish Immigration Centres in the US, which, together with its member organisations, provides support and information to vulnerable Irish and the undocumented.

The Coalition and its member organisations receive significant annual funding through the Government’s Emigrant Support Programme for their work. In 2019 alone, over €3m ($3.7m) was allocated to 76 organisations across the US, including those that provide frontline welfare assistance to Irish citizens. Furthermore, in response to the pandemic, a dedicated COVID-19 Response Fund for Irish Communities Abroad has been set up within my Department to help these organisations meet the needs of those who have recently been made particularly vulnerable. Earlier this month I met virtually with several organisations in New York who, with the assistance of this fund, are providing much needed emergency support to Irish communities.

This Government has also focused on securing future pathways for immigration, primarily through the E3 Visa Bill, which has been passed in the House of Representatives and is currently before the Senate. If passed, this could open up approx. 4,000 US visas per year to Irish graduates. This approach complements Government support to the undocumented Irish living in the US.

Question No. 36 answered with Question No. 16.

Ministerial Correspondence

Questions (37)

Michael McGrath

Question:

37. Deputy Michael McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade the position in relation to a matter raised in correspondence (details supplied); and if he will make a statement on the matter. [9530/20]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

The Government is closely monitoring the situation in Hong Kong in light of the recent announcement by the Chinese National People's Congress to implement a law on national security in Hong Kong.

Ireland, along with our EU partners, supports the principle of "One Country, Two Systems" under which Hong Kong enjoys a high degree of autonomy, along with an independent political and legal system, as set out in the Basic Law. We have a strong interest in the continued stability and prosperity of Hong Kong under this principle, underlined by Ireland's long history of engagement and the presence of a large Irish community there.

Ireland fully supports the recent statements made by High Representative Borrell on behalf of the EU. The most recent statement, made on 29 May, expresses our grave concern at the decision and its conformity with the Sino-British Joint Declaration of 1984 and the Hong Kong Basic Law. The statement made on 22 May also called for democratic debate, consultation of key stakeholders, and respect for protected rights and freedoms in Hong Kong when proceeding with the adoption of national security legislation.

We will continue to follow developments in Hong Kong closely as the situation evolves.

Question No. 38 answered with Question No. 16.

Departmental Advertising

Questions (39)

Seán Sherlock

Question:

39. Deputy Sean Sherlock asked the Tánaiste and Minister for Foreign Affairs and Trade the amount that has been spent on advertising in 2020 by his Department and its agencies on social media platforms (details supplied) in tabular form; and the name of each campaign advertised. [9839/20]

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Written answers

Tánaiste and Minister for Foreign Affairs and Trade

My Department engages in public awareness advertising where there is important information that needs to be brought to the attention of citizens. To date there has been no expenditure on advertising on social media platforms for campaigns in 2020. However, some expenditure has occurred in 2020, which relates to campaigns that ran in 2019.

In addition to the expenditure from 2019 campaigns, Embassies abroad in 2020 have spent a small sum on social media to highlight specific projects in their locations.

Campaign Details	Social Media Platform	Supplier	Cost
St Patrick's Day Google 17/03-31/03/19	Google	PHD	€11,394.63	2019 campaign
Ireland's Rugby World Cup promotion campaign, 09/12 - 31/12/19	Google & Facebook	PHD	€42,532.27	2019 campaign
Missions abroad	Facebook & Twitter		€1,377.40
		Total	€55,304.30

Wage Subsidy Scheme

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Written answers

Minister for Finance

I propose to take Questions Nos. 40, 52 and 88 together.

The Temporary Wage Subsidy Scheme (TWSS) is one of a number of significant measures that have been introduced since the beginning of March to attempt to minimise the negative impact on the labour market through an exceptional period, where at least one million workers are now relying on some form of State support.

The aim of the scheme is to maximise staff retention and firm viability by maintaining the link between the employer and employee. As of 29 May 2020, over 57,400 employers have registered with Revenue for the TWSS, over 501,500 employees have received at least one payment under the scheme and the cumulative value of payments made to employers is €1.29 billion.

Last Friday I announced an important change to the TWSS to deal with the issue of those returning from maternity or adoptive leave which was raised by various parties and interest groups.

Officials had been looking at how it might be possible to address the issue in a way that ensures consistent treatment with other employees who were on the payroll in January and February, whose salaries were taken into account in determining TWSS payments for employers.

Following Government approval, a change to the TWSS will be made as an exceptional measure to accommodate the salaries of those who have returned to work after a period of maternity or adoptive leave who consequentially were not on the payroll during the relevant period.

The amendment will be legislated for later in the year as part of the usual Finance Bill 2020 process but in the interim, Revenue has agreed that this provision will be implemented from 26 March, where applicable.

I am satisfied that this change addresses the matter raised and ensures appropriate operation of the TWSS in recognition of the unique circumstances applying to those returning to work after a period of maternity or adoptive leave by allowing for commensurate treatment with other employees who were on the payroll on 29 February.

Further details of how the measure will operate will be published by Revenue shortly, but I would highlight that the manual process being adopted will require input from employers so I would encourage them to contact Revenue when it is launched to allow for payments to be processed as quickly as possible.

Covid-19 Pandemic Supports

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Written answers

Minister for Finance

I propose to take Questions Nos. 41, 44, 53, 61 and 70 together.

The Temporary Wage Support Scheme (TWSS) is provided for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020. Deputies will be aware that the TWSS is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy and in particular to support employment relationships which were already in place before the commencement of the scheme.

The underlying legislation and the scheme itself were developed quickly, having regard to the urgent Government objective of getting much needed assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced as a result of the Public Health Emergency.

Under this legislation, 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. The TWSS builds on data returned to Revenue through its real-time PAYE system. The core principles of the scheme are that:

- the business is suffering significant negative economic impact due to the pandemic,

- the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020, and

- the February 2020 payroll submissions were submitted to Revenue before, in general, 15 March 2020 but recently extended, by concession, to 1 April 2020.

The latter two conditions were particularly designed with a view to preventing abuse of the scheme.

In relation to other direct support measures, I would draw the Deputies' attention to a recent publication by the Department of Business, Enterprise and Innovation, which outlines the key financial supports and resources that are being made available to help all businesses and sectors impacted by Covid-19. This publication is available at the following link:

https://www.gov.ie/en/publication/c644c0-supports-for-businesses-impacted-by-covid-19/

Wage Subsidy Scheme

Questions (42, 75, 96)

Johnny Mythen

Question:

42. Deputy Johnny Mythen asked the Minister for Finance his plans to extend the temporary wage subsidy scheme to the taxi, bus and coach sector (details supplied). [8892/20]

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Seán Sherlock

Question:

75. Deputy Sean Sherlock asked the Minister for Finance if he will direct support to the bus and coach sector such as a continuation of the temporary wage subsidy scheme until the tourism and transport sector returns to normal, the introduction of a turnover-linked direct grant to assist with liquidity and the restoration of the fuel rebate for the sector. [8790/20]

View answer

Brendan Smith

Question:

96. Deputy Brendan Smith asked the Minister for Finance the measures he will implement to protect jobs in the motor industry; and if he will make a statement on the matter. [9219/20]

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Written answers

Minister for Finance

I propose to take Questions Nos. 42, 75 and 96 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 (The Act).

The underlying legislation and the TWSS itself were developed having regard to the Government objective of providing assistance to employers and employees, where businesses have been seriously affected by the Covid-19 pandemic and the restrictions which were introduced as a result. The scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce. The sectors to which the Deputies refer are no different in this regard.

In relation to other direct support measures, I would draw the Deputies' attention to a recent publication by the Department of Business, Enterprise and Innovation, which outlines the key financial supports and resources that are being made available to help all businesses and sectors impacted by Covid-19. This publication is available at the following link:

https://www.gov.ie/en/publication/c644c0-supports-for-businesses-impacted-by-covid-19/ .

Finally, the Diesel Rebate Scheme offers a partial refund to qualifying road haulage and bus transport operators on the excise paid on auto diesel when the retail price is over €1.00 (Vat exclusive). The repayment increases gradually to a maximum of 7.5 cents per litre when the retail price is €1.16 (Vat exclusive) or above. The rebate rate is calculated on the basis of the average retail price in a quarter year period and is based on CSO data. As a temporary support measure, the terms of this scheme were enhanced in Budget 2020 by doubling the marginal rate of repayment from 30% of the excise paid to 60 % when the retail price of diesel is over €1.07 (Vat exclusive). The scheme continues to be available to all qualifying road transport operators.

Wage Subsidy Scheme

Questions (43)

Cian O'Callaghan

Question:

43. Deputy Cian O'Callaghan asked the Minister for Finance if the temporary wage subsidy scheme will be extended to supply chain businesses for a period after the reopening of restaurants and catering establishments; and if he will make a statement on the matter. [8983/20]

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Written answers

Minister for Finance

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 (The Act).

The underlying legislation and the TWSS itself were developed having regard to the Government objective of providing assistance to employers and employees, where businesses have been seriously affected by the Covid-19 pandemic and the restrictions which were introduced as a result. The scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce. The sector to which the Deputy refers is no different in this regard.

The future of the TWSS remains under review and an announcement will be made in due course. I acknowledge that certain sectors will face particular challenges into the future as we gradually re-open our economy, and this is one of many factors that I take account of in my current deliberations.

Question No. 44 answered with Question No. 41.

Insurance Industry

Questions (45)

Emer Higgins

Question:

45. Deputy Emer Higgins asked the Minister for Finance if his attention has been drawn to the fact that insurers are increasing premiums to customers despite no claims by the customer during the Covid-19 crisis and that they are demanding 25% of the premium to continue policies in suspended mode during the crisis by which cover is reduced; his plans to intervene to ensure fairness for business owners; and if he will make a statement on the matter. [9091/20]

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Written answers

Minister for Finance

I am aware that there have been many concerns expressed about how the insurance industry is responding to the needs of its business policyholders in these difficult times. I have considerable sympathy for such policyholders, however the Deputy should note that neither I, nor the Central Bank, have any influence over the pricing of insurance products, nor can we compel any insurer operating in the Irish market to provide cover, as this is a commercial matter for insurers. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from adopting rules, which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.

Notwithstanding the above, my officials and I have had extensive engagement with the insurance industry over insurance cover and reliefs for businesses during the COVID-19 emergency. The outcome of this engagement is an agreement that I announced on 10 April whereby most of the key insurers in the Irish market - namely Allianz, AIG, AXA, FBD, Liberty Insurance, RSA, Travelers Insurance and Zurich - will ensure that a number of common forbearance measures are available to their business customers. It should be noted that this is a voluntary agreement, but my views are that the other major insurers in the Irish market should also sign up to this commitment.

The common measures included in the agreement are outlined below:

Forbearance

- Insurers will reduce premiums for business customers to reflect reduced level of exposure as a result of COVID-19 restrictions for Employer Liability/ Public Liability and Commercial Motor.

- Insurers will allow up to 28 days after renewal for payment.

Business Premises

- Insurers will maintain cover for unoccupied commercial buildings/ premises not in use due to COVID-19 restriction (for a maximum of 90 days). Appropriate supervision and security of the premises is required.

- Insurers will support requests for a change of property use during the crisis.

While I believe that the above agreement should assist many businesses in relation to their insurance, this will only happen if insurers deliver upon their commitments. Therefore, I asked Insurance Ireland to put in place a mechanism which provides proof of delivery. My Department received the first “Activity Report” on this issue from Insurance Ireland on 25 May. This Report shows that in the period 23 March to 4 May, Insurance Ireland members processed 4,093 forbearance requests for business customers worth a total of €5,242,349. I have asked my officials to seek more detailed information from Insurance Ireland on the nature of the forbearance being offered. It should also be noted that my Department is in regular touch with the Alliance for Insurance Reform on these and other insurance matters.

The Deputy should be aware that the Central Bank has written to insurance firms setting out their expectations that insurance firms should take account of the difficult and challenging situation in which many customers find themselves. The Bank has also stated that, as a matter of urgency, firms should develop consumer-centric solutions to the handling of insurance payment breaks and policy rebates in light of the COVID-19 emergency.

I have set out already to the House that I strongly believe that insurers should treat their customers honestly, fairly and professionally and in line with the Central Bank’s Consumer Protection Code. However, neither the Central Bank nor I have any role in adjudicating on matters such as price increases nor other issues such as complaints. I encourage consumers to engage directly with their broker or insurer regarding forbearance measures and other reliefs. If there continues to be a disagreement between an insurer and a policyholder, then the appropriate channels for resolving them must be followed i.e. through use of a firm’s internal complaint process or recourse to the Financial Services and Pensions Ombudsman or litigation.

Finally, I would like to assure the Deputy that my Department will continue to be as pro-active as it can be on these issues and will continue to liaise with the Central Bank and Insurance Ireland on an ongoing basis.

Cycle to Work Scheme

Questions (46, 74)

Holly Cairns

Question:

46. Deputy Holly Cairns asked the Minister for Finance his views on expanding the reach of the bike-to-work scheme to include students, jobseekers, those on disability allowance or doing unpaid work; and his further views on increasing the €1,000 limit to include e-bikes, cargo bikes and non-traditional bikes such as tricycles, handcycles and other modified bikes appropriate for those that require same due to physical capacities. [9386/20]

View answer

Seán Sherlock

Question:

74. Deputy Sean Sherlock asked the Minister for Finance the amount of applications under the cycle to work scheme in 2019 and to date in 2020. [8759/20]

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Written answers

Minister for Finance

I propose to take Questions Nos. 46 and 74 together.

I am advised by Revenue that section 118(5G) of the Taxes Consolidation Act 1997 provides for the cycle to work scheme. This scheme provides an exemption from benefit-in-kind where an employer purchases a bicycle and associated safety equipment up to a maximum of €1,000 for an employee to use, in whole or in part, to travel to work. Safety equipment includes helmets, lights, bells, mirrors and locks but does not include child seats or trailers.

The scheme applies to pedal cycles and pedelecs. A “pedal cycle” means a bicycle or tricycle which is intended or adapted for propulsion solely by the physical exertions of a person seated thereon. A “pedelec” means a bicycle or tricycle which is equipped with an electric motor (with a maximum continuous rated power of 0.25 kilowatts) which cuts out when a speed of 25 kilometres per hour is reached, or sooner if the cyclist stops pedalling the bicycle or tricycle.

It is assumed that the reference to “cargo bikes” by the Deputy means a bicycle specifically designed to carry a load. Such a bicycle would qualify under the cycle to work scheme, assuming all of the required conditions are satisfied.

Benefit-in-kind is a charge to tax that applies where an employer provides an employee with a benefit such as a bicycle, car or accommodation. As stated above, an exemption from benefit-in-kind applies in relation to the cycle to work scheme, provided the required conditions are met. However, where an employment does not exist, for example, in the case of students, individuals in receipt of social welfare payments or unpaid volunteers, such individuals can’t qualify for the scheme.

Further information on the cycle to work scheme can be found on Revenue’s website, available at https://www.revenue.ie/en/jobs-and-pensions/taxation-of-employer-benefits/cycle-to-work-scheme.aspx .

In relation to the amount of applications received, the scheme operates on a self-administration basis, and relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. There is no notification procedure for employers involved. This approach was taken with the deliberate intention of keeping the scheme simple and reducing administration on the part of employers.

Accordingly, there are no records available on the number of people availing of the scheme.

Wage Subsidy Scheme

Questions (47, 62)

Aindrias Moynihan

Question:

47. Deputy Aindrias Moynihan asked the Minister for Finance the measures in place for employees in receipt of the temporary wage subsidy scheme in which an employer is not topping up pay and employees are working full-time for a significant reduced take home pay without any consultation from the employer to the employee on accepting a reduced salary; if it is intended for the scheme to be used in this manner; and if he will make a statement on the matter. [9477/20]

View answer

Aindrias Moynihan

Question:

62. Deputy Aindrias Moynihan asked the Minister for Finance the measures in place for employees in receipt of the temporary wage subsidy scheme in cases in which an employer is not topping up pay and employees are being instructed to work full-time for a significant reduced take-home pay; and if he will make a statement on the matter. [8592/20]

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Written answers

Minister for Finance

I propose to take Questions Nos. 47 and 62 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. In the context of the compelling need for immediate implementation of the TWSS, the scheme necessarily had to build on data returned to Revenue through its real-time PAYE system.

The key prescribed conditions of the scheme are that –

- the business is suffering significant negative economic impact due to the pandemic and is unable to pay normal wages to employees, but wishes to continue to employ the employees and is making best efforts to continue to pay some wages to the employees,

- the employees were on the payroll at 29 February 2020, and

- the employer had fulfilled its PAYE reporting obligations for February 2020 before, in general, 15 March 2020, but recently extended to before the 1 April 2020.

The latter two conditions were particularly designed with a view to preventing abuse of the scheme.

The amount of the temporary wage subsidy payable in relation to eligible employees is based on the average net weekly pay reported for January and February 2020 for each employee.

I clarified in my letter of 16 April 2020 to Revenue, which set out my determinations of the amounts of wage subsidy to be payable in relation to different classes of employees, that for the purposes of the operation of the TWSS, the Average Revenue Net Weekly Pay is the employee’s average net weekly pay for January and February 2020 based on the payroll submissions made by the employer concerned to Revenue. It is a matter for each employer concerned to decide what amount of normal wages should be paid to employees in addition to the wage subsidy amounts, and whether to try match the employees’ previous gross or net pay. Ultimately, what employees are most concerned about is how near the aggregate of the wage subsidy amount plus whatever amount of normal wages is being paid net to them by employers is to their normal take home pay.

Revenue has confirmed that it has now implemented the revised rates of wage subsidy as determined by me on 16 April 2020, with the remainder to be implemented shortly. The revised rates apply as respects payroll notifications received by Revenue on or after 4 May 2020 in respect of payroll runs to be made on or after that date. The revised rate now implemented include:

the 85% subsidy rate for employees whose average net weekly pay does not exceed €412,

- non-tapering of the 85% subsidy where an employer contribution of more than 15% of the employees net weekly pay results in a salary payment of up to €350 per week,

- the flat rate subsidy of up to €350 for employees whose average net weekly pay is more than €412 but less than €500,

- the 70% subsidy rate for employees whose average net weekly pay is more than €500 but less than €586, with a maximum subsidy of €410 applying,

- a maximum payment of €350 per week for employees whose average net weekly pay is greater than €586 per week but not more than €960 per week, subject to specific tapering reductions based on the employer contribution to the net weekly earnings.

It is important to note that the TWSS is operated in real-time by employers through the normal payroll process. To ensure that subsidy amounts are paid to employees on a timely basis as part of the relevant payroll run, it is necessary to calculate the amount of the subsidy due to an employee based on the employee’s gross pay. This is necessary as an employee’s net pay cannot be fully determined before the actual payroll is run. Revenue is aware that, in effect, this means that for some employees where the employer pays between (net weekly) €586 and €960, the full amount of the subsidy due to an employee may not be paid through the payroll run concerned. However, Revenue has confirmed it will be implementing a system development to ensure that any subsidy amounts that remain due to such employees will be calculated, by Revenue, following the submission of the actual payroll or payrolls. Arrangements will then be made by Revenue to pay any outstanding subsidy amount directly to the employees concerned. The necessary system development to achieve this will be implemented shortly and will be applied retrospectively from 4 May 2020 to any impacted weekly, fortnightly or monthly paid employees.

Finally, I am advised by the Minster for Employment Affairs and Social Protection that workers who are in receipt of the one parent family payment or the working family payment will continue to receive these payments during their temporary layoff as a result of the Covid-19 related closures provided they continue to meet the eligibility conditions for these schemes. In relation to Working Family Payment, it continues to be paid to persons who have experienced a temporary loss of employment, or a reduction in their working hours as a result of COVID-19. It is open to any person who considers that their circumstances have changed to request a review of their claim. If this results in an increased rate of payment, this increase will be backdated accordingly. A reduction in a rate of payment is normally only applied from a current date, unless there is evidence that a person knowingly misled the Department or failed to report a change in their circumstances.

Covid-19 Pandemic

Questions (48, 97)

Niamh Smyth

Question:

48. Deputy Niamh Smyth asked the Minister for Finance if a matter regarding insurance during Covid-19 for a business (details supplied) will be reviewed; if the matter which is being faced by many businesses will be addressed; and if he will make a statement on the matter. [8318/20]

View answer

Brendan Smith

Question:

97. Deputy Brendan Smith asked the Minister for Finance the progress to date in discussions with insurance companies in ensuring that claims are honoured in relation to business interruption; and if he will make a statement on the matter. [9242/20]

View answer

Written answers

Minister for Finance

I propose to take Questions Nos. 48 and 97 together.

I am aware that there have been many concerns expressed about how the insurance industry is responding to the needs of its business policyholders in these difficult times, in terms of honouring business interruption claims and with regard to whether forbearance and other flexible measures are being offered to them. I have considerable sympathy for such policyholders, however the Deputy should note that I have no legal authority to compel an insurer to pay a claim as this forms part of a contract between the insurer and the policyholder. However, as a general rule, I believe that insurers should not attempt to reject claims on the basis of interpreting policies to their own advantage. Insurers should engage with those businesses honestly, fairly and professionally to honour those elements of the policies covered, in line with the Central Bank’s Consumer Protection Code. The Deputies should note however that neither I, as Minister for Finance, nor the Central Bank have any role in adjudicating on such matters. If there continues to be a disagreement between an insurer and a policyholder, then the appropriate channels for resolving them must be followed i.e. use of the Financial Services and Pensions Ombudsman or litigation.

Having said that, my officials and I have been engaging with the sector in an effort to get some much needed certainty for business policyholders. On business interruption claims, I wrote to Insurance Ireland on 27 March and indicated amongst other things that

(i) insurers should not attempt to reject claims on the basis of interpreting policies to their own advantage; and,

(ii) that where a claim can be made because a business has closed as a result of a Government direction due to contagious or infectious disease, that the recent Government advice to close a business in the context of COVID-19 should be treated as a direction.

Insurance Ireland, on behalf of its membership, responded on 3 April and stated that it accepted both of my points. It did however indicate that each insurance policy is different and there may well be other factors which lead to the adjudication of whether a business interruption claim is valid or not, other than Government advice to close. Following on from this correspondence, I held a teleconference with Insurance Ireland, on 17 April, where I reiterated that some insurers, by adopting a “blanket” rejection of all business interruption claims, were doing the industry significant reputational damage and were not treating customers fairly.

In addition, the Deputies should note that the Central Bank wrote to the CEOs of major insurers outlining its expectations of them in this crisis from a consumer protection perspective. This included the Bank’s belief that while most insurance policies are clear, if there is a doubt about the meaning of a term, the interpretation most favourable to the consumer should prevail. The Central Bank is continuing to engage with the non-life insurance industry on these matters and will continue to closely monitor the situation to ensure that firms are meeting the expectations as previously set out.

I would also like to set out my views on forbearance. I believe that insurers have a role to play in supporting their customers in these difficult times. My officials and I have had extensive engagement with the insurance industry over reliefs for businesses during the COVID-19 emergency. The outcome of this engagement is an agreement that I announced on 10 April whereby most of the key insurers in the Irish market - namely Allianz, AIG, AXA, FBD, Liberty Insurance, RSA, Travelers Insurance and Zurich - will ensure that a number of common forbearance measures are available to their business customers. It should be noted that this is a voluntary agreement, but my views are that the other major insurers in the Irish market should also sign up to this commitment.

The common measures included in the agreement are as follows:

(i) Forbearance commitments - insurers will reduce premiums for business customers to reflect reduced level of exposure as a result of COVID-19 restrictions for Employer Liability/ Public Liability and Commercial Motor. Insurers will also allow up to 28 days after renewal for payment.

(ii) Approach to business premises - insurers will maintain cover for unoccupied commercial buildings/ premises not in use due to COVID-19 restriction (for a maximum of 90 days). Appropriate supervision and security of the premises is required. Insurers will also support requests for a change of property use during the crisis.

While I believe that the above agreement should assist many businesses in relation to their insurance, this will only happen if insurers deliver upon their commitments. Therefore, I asked Insurance Ireland to put in place a mechanism, which provides proof of delivery. My Department received the first “Activity Report” on this issue from Insurance Ireland on 25 May. This Report shows that in the period 23 March to 4 May, Insurance Ireland members processed 4,093 forbearance requests for business customers worth a total of €5,242,349. I have asked my officials to seek more detailed information from Insurance Ireland on the nature of the forbearance being offered. It should also be noted that my Department is in regular touch with the Alliance for Insurance Reform on these matters.

In conclusion, I would like to assure the Deputies that my Department will continue to be as pro-active as it can be on these insurance issues and will continue to liaise with the Central Bank and Insurance Ireland on an ongoing basis.

Tax Credits

Questions (49)

Catherine Murphy

Question:

49. Deputy Catherine Murphy asked the Minister for Finance if he has evaluated the merit and costed an enhanced tax credits package for frontline blue light and medical workers; and if he will make a statement on the matter. [8333/20]

View answer

Written answers

Minister for Finance

Ireland has a progressive income tax system which is structured such that the more income you have, the more tax you pay. As an individual’s income increases they move up through the various rates and bands and, as a result, while the levels of take home pay increase overall, the amount of tax paid also increases. Total income tax receipts account for around 40% of Ireland’s annual tax receipts, thereby making a significant contribution towards the cost of the various Exchequer funded State services, many of which are experiencing additional pressures at this time on account of the crisis we are facing as a result of the necessary response to the COVID-19 pandemic.

The Government greatly appreciates the additional efforts of essential workers, front line staff and all those working during this difficult time. They are making a key contribution to the State-wide response to the COVID-19 crisis. Rather than waiving tax payments or introducing a tax relief for those who are working at this time, 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 and restarting businesses as we gradually reopen our economy in line with the Government roadmap.

Value Added Tax

Questions (50)

Cathal Crowe

Question:

50. Deputy Cathal Crowe asked the Minister for Finance the reason recycled plastic materials which have been subject to 23% VAT in their first lives are subject to VAT once again when it comes to recycling only to again be charged VAT at the point of resale; and if he will make a statement on the matter. [8374/20]

View answer

Written answers

Minister for Finance

I am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with VAT legislation, the supply of all goods is generally liable to the standard rate of VAT, currently 23%, including goods manufactured or produced from recycled materials; the acceptance of waste for recycling is regarded as a service of the disposal of waste material and is liable to tax at the reduced rate of 13.5%.

Businesses who are registered for VAT are entitled to recover the VAT they incur on their business inputs used in the purchase or production of goods. VAT is a tax on the value added to a supply and the collection and recovery of VAT takes place at each stage of the chain of supply from manufacturing to retailer.