Written Answers Nos. 31-50
31. Deputy Marc MacSharry asked the Minister for Finance the length of time the temporary wage subsidy scheme will be extended to coach and bus operators in view of the long-term impacts of social distancing on such businesses. [11756/20]
View answerThe 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) and is being extended until the end of August.
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 Government decided on 5 June 2020 to extend the Temporary Wage Subsidy Scheme (TWSS) until the end of August. The intention is to continue to monitor the scheme closely in the coming period. I expect that decisions will be taken at an appropriate time on next steps for the TWSS beyond end-August. In this regard, I acknowledge that certain sectors will face particular challenges into the future as we re-open our economy, and this is one of many factors that will inform such future decisions.
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/
32. Deputy Robert Troy asked the Minister for Finance if persons that work in the hospitality sector during busy periods, that is, seasonal workers, are eligible for the temporary wage subsidy scheme. [11765/20]
View answer59. Deputy Colm Burke asked the Minister for Finance if supports, including the existing Covid-19 subsidy supports, will be in place for businesses that are seasonal which would normally open in March or April; and if he will make a statement on the matter. [12021/20]
View answer82. Deputy Mary Butler asked the Minister for Finance the position regarding specific financial supports available to seasonal publicans that also serve food but have been closed during the Covid-19 pandemic months and will incur significant expenses in preparing their premises to reopen; his views on whether seasonal proprietors in such a position might not be in a position to reopen without tailored financial supports; his further views on the way in which such seasonal businesses can be supported; the position regarding the availability of the temporary wage subsidy scheme to seasonal proprietors in view of the fact they cannot provide payroll data for reference months such as January and February 2020 due to the fact they are primarily open in the summer months; and if he will make a statement on the matter. [12607/20]
View answerI propose to take Questions Nos. 32, 59 and 82 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 TWSS is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. Of necessity, the underlying legislation and the scheme itself were developed quickly, having regard to the urgent Government objective of getting assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus. It must be accepted that the TWSS cannot be adapted to meet the particular circumstances of individual employers or employees.
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 conditions 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 before, in general, 15 March 2020, but extended recently to 1 April 2020.
The latter two conditions were particularly designed with a view to preventing abuse of the scheme. The wage subsidy per employee is calculated based on the net pay reported for January and February 2020. The scheme does not distinguish between ordinary wages, shift allowances, overtime, bonuses or commission or between part-time or full-time employees. Moreover, the scheme has no role in relation to the employer/employee relationship in so far as terms, conditions and entitlements of the employment are concerned.
Accordingly, it follows that 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 individual commenced a new employment after that date, or returned to the payroll of his or her employer after that date following a period of unpaid leave, he or she does not meet the eligibility criteria with the employer as he or she would not have been on the employer’s payroll at that date.
The Deputies will be aware that the Government decided on 5 June 2020 to extend the Temporary Wage Subsidy Scheme (TWSS) until the end of August. The intention is to continue to monitor the scheme closely in the coming period. I expect that decisions will be taken at an appropriate time on next steps for the TWSS beyond end-August. In this regard, I acknowledge that certain sectors will face particular challenges into the future as we re-open our economy, and this is one of many factors that will inform such future decisions.
However, there are no plans at the present moment to revisit the core criteria. The TWSS is built upon historic PAYE returns made to Revenue – this is fundamental to the operational of the scheme which has given support to over 530,000 employees.
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/
33. Deputy Frankie Feighan asked the Minister for Finance his views on whether the current percentage rates, associated fees and costs that Home Building Finance Ireland applies to loans it offers to developers and builders here is suitable to help achieve the overall goal of building more homes and reducing high levels of low housing supply here; and if he will make a statement on the matter. [12005/20]
View answerHBFI was established to provide funding on a commercial basis to residential development projects which is not otherwise available in the market place. HBFI is focused on builders located throughout the country and to date has approved funding of €135m for 743 homes across 16 counties. HBFI is making significant progress and has recently indicated its ability to support developments where funding from other lenders may no longer be available.
HBFI is required to act commercially with rates and fees benchmarked against those available in the market. This is to ensure adherence to State aid rules and in doing so protects the State’s position.
I am satisfied with the progress which HBFI is making in unlocking new homes that would not otherwise be delivered. HBFI has confirmed that it remains confident that it will deliver 7,500 units in its first five years, as per its launch announcement.
34. Deputy John Lahart asked the Minister for Finance the guidelines regarding retail and other premises refusing to use cash or take cash from customers (details supplied); and if he will make a statement on the matter. [12446/20]
View answerThe Deputy will aware that card payments, and in particular contactless payments, are being promoted in order to support public health policy at this time.
As retail outlets begin to reopen, I am aware that some retailers are choosing to only accept card and contactless payments in store. I understand that this may cause difficultly for consumers who do not have access to debit or credit card facilities.
The Payments Accounts Directive (PAD) was transposed into Irish law in September 2016. From this date, all banks offering payment accounts were required to offer an account with basic features free of charge for at least one year to consumers who do not already have a bank account. These basic features include a debit card, direct debits and the ability to pay for goods and services online.
This means that unbanked customers are able to open a basic bank account whatever their personal financial situation and I would encourage anyone who doesn't have access to a credit union account or An Post account to contact a bank about opening a basic bank account.
In order to support existing customers during this difficult time, a number of banks have announced that they are waiving contactless fees and have chosen to postpone planned increases in bank charges on standard current accounts.
Where retailers are accepting a limited range of payment options, consumers must be informed of the payment options available in advance of a transaction. This can be achieved, for example, by displaying signs at the till and at the store entrance. If a retailer does not specify clearly in advance of a transaction the means of payment they are prepared to accept, they must accept cash.
I am advised by the Central Bank that banknotes do not represent a particularly significant risk of infection compared with other surfaces that people come into contact with in daily life. Therefore, I would encourage retailers to provide a range of payment options for consumers.
35. Deputy Violet-Anne Wynne asked the Minister for Finance the action he is taking against employers that avail of the temporary wage subsidy scheme but then fail to pay their employees the required wage based on the stated calculation that forms the scheme; and if he will make a statement on the matter. [12509/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. The administration of the TWSS is under the care and management of Revenue.
Of necessity, Revenue’s primary focus in operating the TWSS so far has been on providing a timely and efficient customer support service to ensure that much needed financial assistance is paid to employers and employees as quickly as possible. Eligibility for the TWSS is initially determined largely on the basis of the self-assessment and declaration by the employer concerned, combined with a risk focused follow up verification by Revenue involving an examination of relevant business records where that is considered necessary.
I am advised by Revenue that where an employer has been paid a wage subsidy in respect of an employee and it transpires that the employer has not passed on the wage subsidy to the employee, or that the employer was not entitled to receive the wage subsidy in respect of the employee, the relevant law requires that the employer must refund the wage subsidy amount to Revenue. Any amount due to be so refunded to Revenue is treated as if it were tax due and payable by the employer from the date the wage subsidy amount in question had been paid by Revenue and is automatically so due and payable by the employer without the making of an assessment. However, where necessary, Revenue may make an assessment to recover the amounts in question and the provisions of tax law governing assessments to income tax, appeals against such assessments and the collection of and recovery of income tax apply in relation to the assessment, collection and recovery of wage subsidy amounts from employers. In other words, the full suite of tax collection and enforcement powers, including the charging of interest on amounts due to be refunded by employers, is available to Revenue to recover wage subsidy amounts due to be refunded by employers.
The law governing the TWSS also provides for penalties for abuses of the scheme but only in certain prescribed circumstances. Thus, an employer is liable to a penalty of €4,000, where the employer fails to include in, and separately identify in, the wage slips legally required to be given to employees under the Payment of Wages Act 1991 the amount of the wage subsidy. Where the employer who fails to comply is a body of persons, the secretary of that body is liable to a separate penalty of €3,000. These penalties are designed to ensure transparency around the wage subsidy and to protect employees who are entitled to know what wage subsidy the employer has received in respect of them.
Finally, I would add that details of subsidy payments made by pay date are available to view in each employee’s myAccount record. This facility allows employees to view whether their employer is participating in the scheme and being refunded a wage subsidy on their behalf. Where the amount of subsidy paid is available from employer payroll submissions made to Revenue, this amount is also being displayed.
36. Deputy Richard Boyd Barrett asked the Minister for Finance if he will consider making changes to the inheritance tax regulations, including extending the deadline for payment beyond 31 October 2020 in order that persons who have lost loved ones and are dealing with the trauma of loss during the pandemic and who are filing returns will not face additional penalties or interest if they are unable to pay by the deadline; and if he will make a statement on the matter. [12580/20]
View answerThe standard rate of Capital Acquisitions Tax is 33%. There are three tax-free thresholds depending on the relationship between the disponer and the beneficiary, with CAT applying on the amount inherited or gifted over the thresholds, as follows:
Group A threshold (€335,000) - Applies where the beneficiary is a child (including certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an absolute inheritance from a child.
Group B threshold (€32,500) - Applies where the beneficiary is a brother, sister, niece, nephew, or lineal ancestor or lineal descendant of the disponer.
Group C threshold (€16,250) - Applies in all other cases.
All gifts/inheritances received since 1991 from all disponers in the relevant group must be aggregated together when calculating the taxable value. The balance of gifts or inheritance above the threshold is taxable.
I am advised by Revenue that the date on which inheritance tax is payable is determined by the ‘valuation date’ on which the market value of the property included in an inheritance must be established. Where this date is between 1 January and 31 August, inheritance tax is payable by 31 October in the same year. Where this date is between 1 September and 31 December, inheritance tax is payable by 31 October in the following year.
Section 30 of the Capital Acquisitions Tax Consolidation Act 2003 contains the rules for determining the valuation date. The valuation date depends on the circumstances particular to a case and is not a fixed date in relation to all inheritances. This date can be earlier than the date on which property is given to a beneficiary as it is the date on which the executors of a will become entitled to retain the property for the benefit of a beneficiary. Generally, this is the date on which probate or administration is granted.
Where the benefit consists of property, it may well be the case that inheritance tax is payable before a beneficiary has received the property due to a delay in completing the administration of an estate. Equally, where a beneficiary has actually received the property, inheritance tax may be payable before a beneficiary has had the opportunity to sell that property and pay the tax liability. Outside of the current COVID-19 circumstances, the length of the conveyancing process is such that it is often the case that an inheritance tax liability arises before a property can be sold to pay that liability. To provide for such situations, taxpayers have a statutory entitlement to payment by instalments in certain circumstances. Monthly instalment payments for up to five years may be allowed subject to the payment of interest at an annual rate of 8%. However, Revenue has discretion to allow payment by instalments over a longer period in exceptional circumstances where the tax cannot be paid without excessive hardship.
In such circumstances, Revenue also has discretion to allow payment to be postponed for such period and on such terms (including the waiver of interest) as it thinks fit. Revenue will consider each case on its merits, taking into account both the financial circumstances of the beneficiary and the nature of the inheritance involved.
37. Deputy Seán Crowe asked the Minister for Finance the way in which he has responded to the collapse in the price of oil on the world market; and his views on whether it is unfair to consumers and commuters that a marked decrease has not been seen on the price of petrol and diesel at pumps as a result of imposed charges, such as excise, VAT and carbon tax, particularly during the Covid-19 crisis during which persons are wary of using public transport. [11659/20]
View answerAs Minister for Finance I have no jurisdiction or control over market pricing of fuel. I have responsibility only for the tax element of fuels. The price of fuels is set by individual retailers and is determined by a number of factors including, taxation, the price of the raw material, retailer margins, the prevailing exchange rates as well as the fact that different wholesalers can enter into forward contracts at different rates for the purchase of oil.
I note that according to CSO statistics the average retail price of petrol and diesel have markedly fallen by approximately 10% from January to May of this year.
38. Deputy Thomas Byrne asked the Minister for Finance the status of an application by a person (details supplied) made to the Revenue Commissioners for the temporary wage subsidy scheme. [11672/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) is an emergency measure to deal with the impact of the COVID-19 pandemic on the economy. It builds on data returned to Revenue through the PAYE system and as such is a fully automated solution. The automated solution, which was developed in a very short timeframe in response to the pandemic, is designed around the dates specified in the legislation and cannot function where those timelines are not strictly adhered to. The timelines require that employees were on the payroll at 29 February 2020 and that employers had fulfilled their PAYE reporting obligations for February 2020 before 15 March 2020.
The 15 March 2020 deadline in respect of the February payroll submission was recently extended to ‘before’ 1 April 2020 by Revenue under its care and management provisions. However, this concession can only apply where all previous payroll submissions were received by 15 March 2020. The concession is also only applicable on a prospective basis and cannot be applied to previous pay periods. The employer must also record a J9 PRSI class for each eligible employee in the relevant payroll submission to access the TWSS. Where the J9 PRSI class is not recorded, then the system cannot ‘identify’ an employee as being eligible for the subsidy.
I am advised by Revenue that the difficulties experienced by the business in question in accessing the TWSS occurred because it recorded PRSI classes other than J9 for its employees, which resulted in them being excluded from the scheme. Following direct engagement with Revenue, the matter was rectified and the business has access to the scheme since 12 June.
39. Deputy Thomas Byrne asked the Minister for Finance the status of an application by a business (details supplied) for the temporary wage subsidy scheme. [11674/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) is an emergency measure to deal with the impact of the COVID-19 pandemic on the economy. It builds on data returned to Revenue through the PAYE system and as such is a fully automated solution. The automated solution, which was developed in a very short timeframe in response to the pandemic, is designed around the dates specified in the legislation and cannot function where those timelines are not strictly adhered to. The timelines require that employees were on the payroll at 29 February 2020 and that employers had fulfilled their PAYE reporting obligations for February 2020 before 15 March 2020.
The 15 March 2020 deadline in respect of the February payroll submission was recently extended to ‘before’ 1 April 2020 by Revenue under its care and management provisions. However, this concession can only apply where all previous payroll submissions were received by 15 March 2020. The concession is also only applicable on a prospective basis and cannot be applied to previous pay periods.
I am advised by Revenue that the business in question filed its February 2020 payroll submission on 20 March 2020, which was outside of the 15 March deadline specified in the legislation, thereby preventing initial access to the TWSS. However, the business does have access under the revised ‘before’ 1 April concessionary arrangements and is receiving subsidy payments.
40. Deputy Ged Nash asked the Minister for Finance when the national economic dialogue will be held in 2020; and if he will make a statement on the matter. [11683/20]
View answerThe National Economic Dialogue for 2020 has been postponed in light of the COVID-19 outbreak and the necessary containment measures introduced to address it.
41. Deputy Ged Nash asked the Minister for Finance the status of the implementation of the VAT compensation refund scheme; the number of recipients; the amount of VAT refunded to date; and if he will make a statement on the matter. [11684/20]
View answerThe VAT Compensation Scheme was introduced in Budget 2018 to relieve the VAT burden on charities and to partially compensate them for the VAT paid on expenditure related to independently raised income on or after 1 January 2018. The scheme is not applicable to VAT paid in years prior to 2018.
The funding for the scheme is capped at €5 million per year and where the total amount of claims in any year exceeds this amount, refunds are paid to charities on a pro-rata basis. Charities can only make one claim per year in respect of the previous year, which must be submitted between 1 January and 30 June. For example, a claim in respect of 2018 had to be made between 1 January 2019 and 30 June 2019.
Revenue started accepting claims for the scheme in January 2019 in respect of eligible VAT paid by charities in 2018. A total of 1,143 claims were received for that year and as the total amount claimed exceeded the €5m fund, refunds were issued on a pro-rata basis, with the full fund allocated.
Revenue is now accepting claims in respect of eligible VAT paid by charities in 2019. In response to the impact of the COVID-19 pandemic, the closing date for submission of claims has been extended from 30 June 2020 to 31 August 2020. A total of 163 claims to the value of €5.7m have been received in respect of 2019 to date. Refunds will be made later in the year once the 31 August closing date for receipt of applications has passed.
42. Deputy Charlie McConalogue asked the Minister for Finance his plans to roll out the disabled drivers board of appeal in view of the fact that other regions have to travel to the one location; if he will further consider the imposition on elderly and disabled persons having to travel long distances to Dún Laoghaire, County Dublin; and if his Department is considering proposals to deal with these anomalies imposed on these applicants. [11710/20]
View answerHearings of the Disabled Drivers Medical Board of Appeal are held on average twice a month at the National Rehabilitation Hospital in Dun Laoghaire, which has the appropriate facilities to cater for people with mobility impairing disabilities of the kind provided for under the Disabled Drivers and Disabled Passengers Scheme.
The Medical Board of Appeal holds regional hearings as demand arises. I have been informed that a hearing was organised and scheduled to be held in Cork City on the 26th April in St. Finbarr's Hospital. However due to Covid 19, unfortunately it was not possible to hold the clinic.
This hearing has been re-scheduled for Cork on 20th August and a hearing has also been arranged in Roscommon hospital for the 29th October. While the current environment is challenging for hospital appointments which are deemed to be non-essential from a medical perspective, it is hoped that both of these hearings will go ahead as scheduled.
It is important that the Medical Board of Appeal conducts appeals in the appropriate clinical environment and that adequate numbers of persons attend regional clinics to ensure that the Board can assess as many applicants in the year as possible.
43. Deputy James O'Connor asked the Minister for Finance the implications for those on the temporary wage subsidy scheme with regard to applying for a mortgage; and if he will make a statement on the matter. [11723/20]
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 provide 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.
Within the parameters of this regulatory framework, the decision to grant or refuse an individual application for mortgage credit is a commercial decision to be made by the regulated entity. in this context, a loan offer may contain a condition that would allow the lender to 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.
Lenders continue to process mortgage applications and have supports in place to assist customers impacted by COVID-19. The Banking & Payments Federation Ireland (BPFI) has published a Covid-19 Support FAQ which customers can consult, or customers can contact their lender directly, if they have any queries or concerns about the impact of COVID-19 on their mortgage application. It should also be noted that 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.
44. Deputy Anne Rabbitte asked the Minister for Finance if crèches will be able to add additional employees to the temporary wage subsidy scheme either for the purposes of increasing staff numbers to meet public health requirements or to substitute for members of staff who are not prepared to recommence work. [11748/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. It is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. Of necessity, the underlying legislation and the scheme itself were developed quickly, having regard to the objective of getting financial assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus. A core objective of the scheme was to maintain the link between the employer and employee.
I am advised by Revenue that 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 by employers through its real-time PAYE system. Where an employer retained an employee on payroll, or where an employee is re-hired by the employer, the wage subsidy scheme is available provided the employee concerned was on the payroll on 29 February.
The Deputy’s question relates to a business taking on new employees for health requirements or where it is not possible to re-hire its previous employees. The TWSS does not apply in these circumstances.
45. Deputy Catherine Murphy asked the Minister for Finance if an organisation and-or State body under the aegis of each Department availed of the Revenue Commissioners’ Covid-19 wage subsidy; if so, the number of staff in each body that took up the scheme in tabular form; and if he will make a statement on the matter. [11799/20]
View answer84. Deputy Bríd Smith asked the Minister for Finance when he plans to publish the list of companies and firms that have availed of the temporary wage subsidy scheme; if the information will be available before the end of this current term of Dáil Éireann; if it will contain details of the numbers of employees on the scheme and the amount of employer top-ups; and if he will make a statement on the matter. [12672/20]
View answerI propose to take Questions Nos. 45 and 84 together.
I am advised by Revenue that, notwithstanding any obligations imposed on the Revenue Commissioners under section 851A of the Taxes Consolidation Act 1997 or any other enactment relating to the confidentiality of taxpayer information, section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 requires that the names and addresses of all employers to whom a temporary wage subsidy has been paid will be published by Revenue on its website.
Revenue further advise me that it will publish the required information when the temporary wage subsidy scheme has ended. In the interest of fairness to all employers participating in the scheme, Revenue will not be commenting on whether any particular employer has availed of the scheme until the scheme has ended.
46. Deputy Carol Nolan asked the Minister for Finance if his Department has a diversity and inclusion policy in place; the measures taken to promote diversity and inclusion from 1 January 2019 to date; and if he will make a statement on the matter. [11825/20]
View answerUnder the Civil Service Diversity Policy - A Policy of Equality of Opportunity, the Department of Finance is strongly committed to equality of opportunity in all its employment practices. As an employer, the Department must fulfil its obligations under equality legislation, particularly the Employment Equality Act 1998-2015.
The Employment Equality Act 1998-2015, outlaws discrimination in a wide range of employment and employment-related areas. These include recruitment and promotion; equal pay; working conditions; learning opportunities - whether on the job or formal training; dismissal and harassment including sexual harassment.
In 2015, the Civil Service published its revised Dignity a Work Policy which was developed in partnership between the Civil Service management and staff unions. The revised policy which applies to staff of the Department of Finance, aims to promote respect, dignity, safety and equality in the workplace. Members of staff are made aware of the policy upon commencing employment in the Department and during the induction programme, that all forms of bullying, harassment and sexual harassment are unacceptable and every member of staff has a duty to behave in an acceptable and respective manner. During the induction training staff are also given an overview of unconscious bias and they are encouraged to complete the Project Implicit Test ( available at https://implicit.harvard.edu/implicit/takeatest.html) to give them a better understanding of their own biases.
As part of the revised policy a new role of Designated Person and Contact person were introduced. The contact person is someone who is available to listen and provide information to a staff member who may be concerned regarding bullying, harassment or sexual harassment in the workplace.
In addition, the Civil Service Employee Assistance Service, CSEAS, is a neutral support service and provides a wide range of free and confidential supports to all employees of the Department.
Lastly, I wish to advise the Deputy that the Department of Finance, provided ‘Being an Engaged Leader’ Programme (unconscious bias training) to staff of the Department during 2017 and 2018 with over 200 staff attending this training. The Department is currently in the process of preparing a Request for Quotation to run a similar type programme for staff.
47. Deputy Peter Fitzpatrick asked the Minister for Finance if he has the power to amend the Value-Added Tax (Refund of Tax) (Touring Coaches) Order 2012, SI No. 266 of 2012, to the extent that such an amendment would allow for input VAT recovery associated with the purchase of fuel, spare parts, repairs and tolls by bus and coach operators; and if he will make a statement on the matter. [11856/20]
View answerI 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 general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate, currently 23% in Ireland, unless they fall within categories of goods and services specified in the Directive, in respect of which Member States may apply a lower rate or exempt from VAT. In addition, the Directive allows for historic VAT treatment to be maintained under certain conditions and Ireland has retained the application of VAT exemption to the transport of passengers and their accompanying baggage. This means that the supplier does not register for VAT, does not charge VAT on the supply of their services and has no VAT recovery entitlement on costs where such costs are used for the exempt supply of passenger transport. However, Ireland has also maintained a relieving provision, the Value Added Tax (Refund of Tax) (Touring Coaches) Order of 2012, which provides for a refund of VAT on the cost of acquiring “qualifying vehicles” used for the carriage of tourists under contracts for group transport.
Extending the scope of the Order to engineer VAT recovery for bus and coach operators in respect of a range of business operating costs while maintaining VAT exemption would be contrary to the Directive.
48. Deputy Louise O'Reilly asked the Minister for Finance the breakdown of the allocation for Ireland under proposals by the European Commission for a recovery fund excluding loans elements; and the estimated additional contribution by Ireland as a result of the initiative. [11884/20]
View answerAs the Deputy will be aware, on 27 May 2020, the European Commission published revised proposals for the next Multiannual Financial Framework (MFF) to run from 2021-2027 to be supplemented by a proposed temporary European recovery instrument “Next Generation EU”.
The total amount being proposed for the period 2021-2027 is €1.85 trillion in commitments (2018 prices) - €1.1 trillion for the MFF and €750 billion for “Next Generation EU”.
It is proposed that the “Next Generation EU” financing will be raised by “temporarily” increasing the Own Resources ceiling to 2.00% of EU Gross National Income (GNI) allowing the Commission to borrow €750 billion on the financial markets to fund measures over the period 2021 - 2024. €500 billion of “Next Generation EU” financing will be in the form of grants to Member States, with the remaining €250 billion as loans. This additional funding to be channelled through EU Budget programmes, will be repaid back between 2028 and 2058 drawing on future EU Budget contributions from Member States or the Own Resources of the Union.
The Commission favours the introduction of new Own Resources to facilitate the repayment of the market finance raised and to help reduce the pressure on national budgets. They have indicated that they will propose additional new Own Resources (such as an extension of the Emissions Trading System based own resources to the maritime and aviation sectors, a carbon border adjustment mechanism, a single market levy and a digital tax) at a later stage of the 2021-2027 financial period.
The European Commission has produced a needs assessment underpinning their proposed “Next Generation EU”. In this needs assessment the European Commission estimate that Ireland’s contributions to the Next Generation EU package would be the second highest in Net % GDP terms in the EU - with an allocation of 0.4%. They estimate that Ireland may potentially receive a total of up to €2 billion in grants ( with a further €1 billion in loans available ) under the recovery package from 2021 to 2024, potentially requiring contributions from Ireland of €18.7 billion from 2028 to 2058. The Commission proposals are detailed and are still under consideration at EU level and in consultation with the relevant Government Departments to assess the implications for Ireland’s priorities at an overall and sectoral level and to assess the implications for Ireland’s contributions to and receipts from the EU Budget.
In terms of initial assessment of the “Next Generation EU” package, it is understood that Ireland’s allocation would be just under €2 billion in grants between 2021 and 2024 to include:
- €354 million in rural development – Green Deal, F2F, Biodiversity Strategy;
- €215 million from ReactEU (essentially Cohesion Programmes)
- €132 million from the Just Transition Fund;
- €1.209 billion from the new Recovery and Resilience - investments and reforms, including in relation to the green and digital transitions and the resilience of national economies.
Further receipts should be available to Ireland under competitively awarded programmes under the “Next Generation EU” package, but this is difficult to estimate at this point.
Heads of State and Governments discussed the Commission’s MFF and “Next Generation EU” proposals at European Council on 19 June, however, no agreement was reached. There is now considerable time pressure on European Council to reach political agreement (requiring unanimity) on the revised package by July to facilitate negotiation with and consent from the European Parliament in time to ensure that the next MFF can come into operation from 1 January 2021.
49. Deputy Louise O'Reilly asked the Minister for Finance if the State or county councils can provide insurance to a not-for-profit social enterprise (details supplied) which can no longer obtain insurance from the insurance market. [11888/20]
View answerLet me say at the outset that I am very aware of the affordability and availability of insurance cover issues facing not-for-profit organisations, such as the one outlined in the Deputy’s question. However, there are significant constraints on what the Government can do to immediately resolve this issue.
Neither I, nor the Central Bank of Ireland, have any influence over the pricing of insurance products, and neither can we compel any insurer operating in the Irish market to provide cover to community groups or organisations, 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.
In relation to the provision of insurance by the State or County Councils, I would be cautious about the introduction of such schemes generally for a number of reasons. Firstly, any State insurance scheme would be required to comply with the same prudential rules as private companies, thereby meaning that the cost of any insurance would still have to reflect the risk involved. Secondly, there is no reason to believe that the State would be any better at managing risks than private insurance companies, and therefore would be in a position to price more affordably. Thirdly such an approach could actually decrease competition in the Irish insurance market, with insurers potentially deciding to cease insuring certain types of risks if there is a view that the State will insure these risks instead, particularly lines of business which are considered to be unprofitable. This would lead to a lack of choice for those seeking cover which could ultimately mean that the cost of insurance becomes even more expensive than it is now. In view of these factors, I am not convinced that a State-backed insurance scheme would be a solution to the cost or availability of insurance, either for not-for-profit organisations or other consumers more generally.
Regarding the organisation in question, I understand from recent media reports that they had insurance with a UK-based insurer that operated in Ireland on a Freedom of Services basis. This insurer indicated last year that it would withdraw from the Irish market in August 2019, although it would continue to honour existing policies after this date. In addition, I also understand that there is an open claim against the organisation in question, which could be impacting its ability to obtain insurance cover from an alternative provider. While I am not in a position to intervene on this matter as Minister for Finance, I would advise the organisation in question to make contact with Insurance Ireland, through their Insurance Information Service. This Service is for those who have queries, complaints or difficulties in relation to obtaining insurance, and can be accessed via email at feedback@insuranceireland.eu.
In conclusion, I believe that this case illustrates the continued need for the work which the Government has been doing already through the Cost of Insurance Working Group to continue, so as to increase both insurance affordability and availability. Of particular importance is the work of the Personal Injuries Guidelines Committee, which was formally established in April and is due to present its draft guidelines to the Judicial Council by the end of October. I expect that more consistent award levels for personal injuries will help to reduce the cost of claims, in particular in relation to legal costs, over time as there will be less incentive to litigate, and instead use the Personal Injuries Assessment Board to settle claims. In addition, I believe that insurers recognise the need to reflect any savings that result from a reduction in the cost of claims in lower prices and a broader risk appetite, which should increase the availability of insurance to community and not-for-profit organisations.
50. Deputy Louise O'Reilly asked the Minister for Finance the annual increases in the retail price of the most popular price category MPPC for a 20-pack of cigarettes since 2010; the portion of the increase related to taxes; the portion of the increase due to price rises by the tobacco industry in tabular form; and if he will make a statement on the matter. [11892/20]
View answerI am advised by Revenue that the annual increases in the retail price of the most popular price category (MPPC) for a 20 pack of cigarettes since 2010 are shown in the table below, together with the portions related to tax increases and trade increases.
|
MPPC |
Tax |
Trade |
Total Increase |
MPPC |
|
|
Year |
at 1 January |
Increase |
Increase |
at Year end |
|
|
€ |
€ |
€ |
€ |
€ |
|
|
2010 |
8.45 |
0.00 |
0.10 |
0.10 |
8.55 |
|
2011 |
8.55 |
0.25 |
0.10 |
0.35 |
8.90 |
|
2012 |
8.90 |
0.28 |
0.12 |
0.40 |
9.30 |
|
2013 |
9.30 |
0.10 |
0.10 |
0.20 |
9.50 |
|
2014 |
9.50 |
0.40 |
0.10 |
0.50 |
10.00 |
|
2015 |
10.00 |
0.50 |
0.00 |
0.50 |
10.50 |
|
2016 |
10.50 |
0.50 |
0.30 |
0.80 |
11.30 |
|
2017 |
11.30 |
0.50 |
0.20 |
0.70 |
12.00 |
|
2018 |
12.00 |
0.50 |
0.20 |
0.70 |
12.70 |
|
2019 |
12.70 |
0.50 |
0.30 |
0.80 |
13.50 |
|
2020 |
13.50 |
0.00 |
0.20 |
0.20 |
13.70* |
|
Increase (2010 -2020) |
3.53 |
1.72 |
5.25 |
*The latest price for the most popular price category at May 2020 is €13.70.
