Tuesday, 30 Jun 2020

Air Corps

Questions (9)

Catherine Murphy

Question:

9. Deputy Catherine Murphy asked the Minister for Defence the number of pilot and air traffic controller posts that are vacant in the Air Corps; and the steps being taken to fill these posts. [13140/20]

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Written answers

Minister for Defence

The information requested by the Deputy is being compiled and I will revert to the Deputy as soon as it is available.

The following deferred reply was received under Standing Order 51

I refer to Parliamentary Question No. 9 of 29 June to which it was not possible to provide a reply within the available timeframe.

The military authorities have advised that there are 24 pilot vacancies and 9 Air Traffic Controller (ATC) vacancies in the Air Corp.

The Government remains committed to returning to, and maintaining, the agreed strength of each branch of the Defence Forces. In that context, training of pilots and ATC's continues with the aim of returning to full establishment. Currently, 15 pilots are undergoing training with an expected graduation date at the end of 2021. A further 10 Air Corps Cadets are in training and are expected to commence their Wings course in early 2021 and 6 personnel are currently undertaking ATC training with a further 3 students planned to commence ATC training in October 2020.

In addition, a campaign to re-enlist former members of the Permanent Defence Force, to fill certain vacancies, is ongoing and has resulted in five flying officers being re-commissioned into the Air Corps since October 2019. Six further applications are at an advanced stage of consideration.

While the capacity of the Defence Forces to induct and train personnel was severely impacted by the COVID-19 situation, such activities have now resumed taking public health guidelines into account. This includes the processing of applications received for the 2020 Cadetship competition and it is expected that a further 8 Air Corps Cadets will be inducted shortly.

In addition, the report of the Public Service Pay Commission (PSPC) of 2019 contains a range of recommendations aimed at improving recruitment and conditions of service for members of the Defence Forces. A High Level Plan to give effect to the recommendations of the PSPC is being implemented.

It should be noted that as the High Level Implementation Plan contains short, medium and long term measures, the full impact of these measures will take time to determine. There are also a range of external variables which impact on recruitment and retention and which can change and these will be carefully monitored to assess their effect as they arise.

The Programme for Government contains a range of commitments aimed at stabilising and restoring the strength of the Defence Forces. An independent Commission will be established to undertake a comprehensive review of the defence requirements of the State. It is also intended that on completion of this review, a permanent pay review body for the Defence Forces will be established.

Defence Forces Personnel

Questions (10)

Mary Lou McDonald

Question:

10. Deputy Mary Lou McDonald asked the Minister for Defence if each long-term recommendation within the Public Service Pay Commission recommendations on recruitment and retention in the Permanent Defence Forces will be implemented in full by the deadline of 4 July 2020 as previously committed to. [13484/20]

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Written answers

Minister for Defence

The Report of the Public Service Pay Commission (PSPC) on Recruitment and Retention in the Defence Forces was published on the 4th of July 2019. The Report was accepted in full by the Government at that time and, to facilitate implementation, an extensive High Level Plan titled ""Strengthening our Defence Forces – Phase One” was also agreed and published on the same date.

The High Level Plan provides for actions or projects to be undertaken to deliver on the PSPC recommendations. It also proposes a timeframe for actions or projects to commence and identifies the lead actor to implement the action or project. The timeframe for commencement of actions is split into four distinct timelines i.e. immediate, short-term, medium-term and long-term. The Plan defines long-term as "action to commence within 6-12 months of approval of this Plan". As such, it should be noted that there is no deadline of 4 July 2020 for the complete implementation of the long-terms projects set out in the Plan.

The table below outlines the status of the projects due for long-term implementation as outlined in the plan and the current status of each project.

	Project	Current Status
V1	Review of Pay Structures	Some initial preliminary work has commenced within my Department. The main body of work is to be done as part of a wider review of public sector pay arrangements. The timeframe for this wider review not confirmed at present.
R6	Professional Military Education (PME) Strategy	First draft of the PME Strategy is nearing completion. It is anticipated that the strategy will be finalised during Q3 2020.
R7	Mental Health and Wellbeing Strategy	First draft of the Mental Health and Wellbeing Strategy is under consideration by the DF Mental Health and Wellbeing Working Group (DFMHWWG). This project is on target for completion in Q3 2020.
R8	Non-Pay Retention Measures in the PDF	Phase 1 report (Review of Current Retention Measures) and Phase 2 report (Review of Retention Measures in other PDFs) are completed. Phase 3 Report (Proposed Further Non-pay Retention Measures PDF) was nearing completion in early March, however, the project team was temporarily reassigned to Covid-19 work. Work has now recommenced and the Phase 3 Report was reviewed in light of Covid-19. The draft report is now with project sponsors for consideration.
A2	Workforce Planning	Project A2 is being progressed with the assistance of an independent HR specialist. The timeframe set out for the development of an integrated workforce plan was overly ambitious when requirements were analysed in more detail, particularly given the range of specialisms in the Defence Forces and recruitment and training processes. In this context, there is significant overlap and interdependencies with other projects. When completed, this important project will better inform recruitment and retention and broader HR policy.

The Covid-19 emergency has impacted project timeframes for some projects included in the "Strengthening our Defence Forces - Phase One" plan. For some projects resources were necessarily reassigned to matters relating to the COVID-19 response and other essential work took priority. At this point, work on all of the outstanding projects either remains ongoing or has recently re-started and projects are being progressed as quickly as is possible in the circumstances.

Departmental Staff

Questions (11)

Jennifer Whitmore

Question:

11. Deputy Jennifer Whitmore asked the Minister for Defence if his Department has established a working from home policy for its employees; and if he will make a statement on the matter. [13545/20]

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Written answers

Minister for Defence

Since the onset of the COVID-19 pandemic, my Department, in line with other civil and public service organisations, has adhered to public health advice and to the Guidance for Public Service Employers published by the Department of Public Expenditure and Reform. This has meant employees working from home where it is possible for them to do so, unless they need to attend the workplace to carry out essential work that cannot be discharged from home. Employees have been provided with information on working safely from home.

I understand that the Department of Public Expenditure and Reform has developed guidelines for civil service organisations (Working from Home during COVID-19 – Guidance for Civil Service Organisations), which is intended to assist civil service organisations as long as necessary to address the health and safety risks of COVID-19. These guidelines are due to issue shortly.

In addition, I understand that the Department of Public Expenditure and Reform has also commenced work on the development of a remote working policy which will address remote working in the longer term for the civil service.

Consular Services

Questions (12, 16)

Niall Collins

Question:

12. Deputy Niall Collins asked the Minister for Foreign Affairs and Trade if he will provide an update on the status of a person (details supplied); and if he will make a statement on the matter. [12847/20]

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Brendan Howlin

Question:

16. Deputy Brendan Howlin asked the Minister for Foreign Affairs and Trade if he has received further information from the Chinese authorities in relation to a person (details supplied); if he expects the person to be allowed leave China and return here; and if he will make a statement on the matter. [13065/20]

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Written answers

Minister for Foreign Affairs and Trade

I propose to take Questions Nos. 12 and 16 together.

I can confirm to the Deputy that we are providing consular assistance to this citizen, through our Consular Assistance Unit in Dublin, and through our Embassy in Beijing and our Consulate General in Shanghai. Our focus has been on supporting the citizen’s consular needs, particularly his health and welfare, while he and his legal team seek to resolve any outstanding legal matters with the local authorities. Our Consul General in Shanghai has been meeting regularly with the citizen since last year, when we were first informed of the case, and is providing all possible support and advice. I can further advise that the case has been raised several times at diplomatic level with the relevant authorities, both here in Dublin and in China. This engagement has highlighted the humanitarian aspects of the case, and the importance of the citizen returning home as soon as possible. The Deputy will appreciate that it would not be appropriate to discuss the details of any individual consular case, nor to comment on matters pertaining to a legal process in another jurisdiction. However I can assure the Deputy that my Department will continue to provide all possible consular assistance to the citizen until he is permitted to return to Ireland.

Ministerial Correspondence

Questions (13, 14, 15)

Thomas Pringle

Question:

13. Deputy Thomas Pringle asked the Minister for Foreign Affairs and Trade when a response will issue to two letters dated 23 March 2020 and 2 June 2020 sent by a group (details supplied); and if he will make a statement on the matter. [13040/20]

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Thomas Pringle

Question:

14. Deputy Thomas Pringle asked the Minister for Foreign Affairs and Trade his views on whether the unilateral sanctions of illegal and unilateral coercive measures imposed by the United States of America on Venezuela specifically are a significant cause of hardship to the civilian population and directly cause unnecessary deaths; and if he will make a statement on the matter. [13041/20]

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Thomas Pringle

Question:

15. Deputy Thomas Pringle asked the Minister for Foreign Affairs and Trade his views on whether the unilateral sanctions imposed by the Unites States of America on Venezuela have caused considerable disruption to the economy in Venezuela with knock-on consequences for the civilian population; and if he will make a statement on the matter. [13042/20]

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Written answers

Minister for Foreign Affairs and Trade

I propose to take Questions Nos. 13, 14 and 15 together.

Venezuela is currently experiencing the worst political, social, economic and humanitarian crisis in its history. I am particularly concerned regarding the humanitarian needs of the population, which are acute. Due to the severe lack of access to basic goods, services, medicines and medical equipment, the impact of the COVID-19 pandemic on the country is extremely worrying.

Ireland supports the call for international solidarity in light of the COVID-19 pandemic. I fully support the calls by the UN Secretary-General and by the EU High Representative Josep Borrell for sanctions regimes to be applied in such a way as not to hinder the provision of essential equipment and supplies to fight COVID-19 and limit its spread. It is important that humanitarian exemptions provided for under UN and EU sanctions regimes are fully availed of and applied in an appropriate and timely manner in light of the current emergency. Through the use of these exemptions, Ireland, as an EU Member State, will play its part to ensure that sanctions do not impede efforts in the global response to COVID-19.

We also join the UNSG in urging countries with unilateral sanctions regimes to ensure that these sanctions do not in any way hinder the fight against COVID-19 or impede humanitarian assistance from reaching the most vulnerable.

At this time of global crisis, I believe that a strong multilateral response is essential. In order to contain and fight the virus, nations must work together and enhance international cooperation. For this reason, Ireland is encouraging a UN system-wide response, and we have significantly increased our financial support by quadrupling funding to the World Health Organisation for 2020. We have allocated over €115 million to the global COVID-19 response, and have pledged an additional €18 million in support to GAVI for the 2021-25 period. Ireland is also proud to contribute to the European Union’s global response to COVID-19, which has mobilised almost €36 billion to date.

I was pleased that Ireland participated in the International Donors Conference in solidarity with Venezuelan migrants and refugees in the midst of COVID-19 that took place on 26 May, co-hosted by Spain and the EU and convened in collaboration with the UN High Commissioner for Refugees (UNHCR) and the International Organisation for Migration (IOM). Ireland pledged €1 million in 2020 to the UNHCR and IOM Regional Response Plan for Venezuelan migrants and refugees.

As I said in my statement that I issued on the occasion of the Solidarity Conference, it is more important than ever for us to demonstrate the values of solidarity and our shared humanity. We know that the impact of this crisis will not fall equally, but will disproportionately impact those already suffering from humanitarian crises, including in situations of displacement, conflict or natural disaster.

Regarding the correspondence which the Deputy mentions, this was received by my Department, along with subsequent other linked correspondence, regarding the situation in Venezuela, and a composite reply issued on 9 June.

I will continue to monitor the situation in the country closely and engage with my EU colleagues and other key interlocutors on this important issue.

Question No. 16 answered with Question No. 12.

Human Rights

Questions (17)

Holly Cairns

Question:

17. Deputy Holly Cairns asked the Minister for Foreign Affairs and Trade his views on the recent infringement by Poland on LGBTQ rights and attempts to classify LGBT as an ideology. [13522/20]

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Written answers

Minister for Foreign Affairs and Trade

I am concerned regarding developments relating to LGBTI+ rights in Poland. The principles of equality and non-discrimination are enshrined in the Charter of Fundamental Rights of the European Union. It is important that these principles are protected and promoted throughout the Union.

Advancing human rights is central to Ireland’s foreign policy, The Global Island. Ireland is committed to promoting the rights of LGBTI+ persons who continue to suffer disproportionate levels of violence and discrimination around the world. Ireland continues to support initiatives in international fora which promote and protect the rights of LGBTI+ persons, and which condemn violence and discrimination on the basis of sexual orientation or gender identity.

The Embassy of Ireland in Poland also undertakes a number of initiatives to this end to raise awareness of and facilitate discussion on the rights of LGBTI+ individuals. This includes taking part in the Warsaw Equality Parade each year. The Embassy also works collaboratively with different NGOs in Poland to facilitate discussion around the issues facing LGBTI+ communities.

We will continue to work both bilaterally and at the EU level to promote and protect the rights of LGBTI+ communities across the EU and beyond.

Departmental Staff

Questions (18)

Jennifer Whitmore

Question:

18. Deputy Jennifer Whitmore asked the Minister for Foreign Affairs and Trade if his Department has established a working from home policy for its employees; and if he will make a statement on the matter. [13549/20]

View answer

Written answers

Minister for Foreign Affairs and Trade

The Department of Public Expenditure and Reform (D/PER) is developing guidelines for civil service organisations (Working from Home during COVID-19 – Guidance for Civil Service Organisations), which is intended to assist Departments for as long as necessary to address the health and safety risks of COVID-19. These guidelines are due to issue shortly.

D/PER has also commenced work on the development of a remote working policy which will address remote working in the longer term for the civil service.

My Department is guided by central policies in terms of working from home arrangements for staff.

Ministerial Meetings

Questions (19)

Sorca Clarke

Question:

19. Deputy Sorca Clarke asked the Minister for Foreign Affairs and Trade if a meeting was planned for early 2020 with those proposing a Hong Kong style, independent, municipality here; if the meeting was cancelled due to Covid-19 restrictions; and if so, if it has been rescheduled for a later date. [13595/20]

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Written answers

Minister for Foreign Affairs and Trade

Early in 2020, an initial approach was made to my Department by a Hong Kong-based consortium exploring the feasibility of a potential large-scale urban development.

The potential development is at a preliminary conceptual stage and it is understood that the consortium has spoken to contacts in a number of jurisdictions.

The promoters were encouraged to carry out more research on how their ideas might fit an Irish context. No arrangements were made for official meetings in Ireland.

Middle East Peace Process

Questions (20)

Seán Crowe

Question:

20. Deputy Seán Crowe asked the Minister for Foreign Affairs and Trade the steps he and his officials have taken to prevent the proposed annexation of territory in the Palestinian West Bank on 1 July 2020; the contact he has had with his Israeli counterpart and authorities, the American administration that is backing this move and his European colleagues in this regard; and his views on whether further annexation of Palestinian lands will irreparably damage a chance at a peaceful two-state solution. [13616/20]

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Written answers

Minister for Foreign Affairs and Trade

I have been forthright on my views about Israeli Government statements regarding the possible annexation of territory in the West Bank. The unilateral annexation by Israel of any part of the occupied Palestinian territory would be a clear violation of international law. It would have no legitimacy, and would not be recognised or accepted by Ireland, or by the international community more generally.

Ireland will not give up on the Two State solution as long as that is the objective of the parties themselves, but annexation would without doubt threaten that prospect, and seriously undermine efforts to find a negotiated solution that respects the legitimate positions of both parties.

As I stated publicly on 23 April: "I think it important, as a friend and partner of Israel, to be very clear about the gravity of any such step. Annexation of territory by force is prohibited under international law, including the UN Charter, whenever and wherever it occurs, in Europe’s neighbourhood or globally. This is a fundamental principle in the relations of States and the rule of law in the modern world. No one State can set it aside at will."

I have in the past made my views on this clear to Israeli leaders, including during my most recent visit to Israel in December 2019, and my officials continue to convey our views to the Israeli authorities. I have also raised this issue in discussions with US representatives, and underlined my serious concerns about possible annexation.

I, and senior officials in my Department, have also highlighted the issue with a large number of EU Member States, to encourage a clear and united position. When this was discussed at the 15 May video conference meeting of EU Foreign Ministers, there was broad agreement that the EU and its Member States should convey these concerns directly to the new Israeli Government. That outreach is ongoing. I welcome the very clear statements that have been made on this matter by EU High Representative / Vice President Josep Borrell, who has said that any annexation could not pass unchallenged. Annexation would inevitably have negative consequences for the EU-Israel relationship.

Ireland has also taken opportunities to raise this issue at the UN, including in Ireland’s statements to the UN Security Council on 23 April 2020, and the Human Rights Council on 15 June 2020. Ireland will continue to prioritise the Middle East Peace Process as we prepare to take up our seat on the UN Security Council in January 2021.

United Nations

Questions (21)

Seán Crowe

Question:

21. Deputy Seán Crowe asked the Minister for Foreign Affairs and Trade his priorities and the difference in approach and policy his Department and representatives hope to introduce and address following the successful election to the UN Security Council. [13617/20]

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Written answers

Minister for Foreign Affairs and Trade

Following our election on 17 June, Ireland will take a seat on the United Nations Security Council for 2021 and 2022.

Our approach to the work of the Council will be guided by the principles and values enshrined in the United Nations Charter, which have informed Irish foreign policy over many decades.

The Council’s workload is very heavy, dealing with more than 30 country situations and 20 cross-cutting thematic issues that affect global peace and security. No two conflicts are the same and each needs to be approached with an understanding of root causes and contributory factors.

In line with the mandate of the Security Council as the principal organ charged with the maintenance of international peace and security, I would highlight three overarching principles that will guide our approach to the Council's work.

The first is building peace, including championing the UN's role in peacekeeping, reinforcing the link between peacekeeping and peace-building, and further developing cooperation on peace and security between the UN and regional organisations, including the African Union. We need to ensure that peace is inclusive and fully involves civil society, particularly women and young people.

The second is preventing conflict. This means strengthening the full spectrum of the UN’s conflict prevention activities – including preventative diplomacy, mediation and non-proliferation and disarmament - and addressing the structural drivers of conflict and insecurity, particularly climate change.

The third is ensuring accountability. This means upholding the rule of law, in particular international humanitarian and human rights law, prioritising the protection of civilians in conflict, ensuring humanitarian access and fighting against impunity.

Ireland aims to be an effective and impactful Member of the Council at a time when multilateralism is under grave pressure. Our work on peace and security issues on the Council will be fully integrated with our ongoing work on other foreign policy priorities, notably sustainable development and human rights.

During our campaign, we consulted widely with UN Member States to understand the views of the international community on key issues on the Security Council agenda. We will listen to the views of all parties before taking a position at the Council. We ran an inclusive campaign and we intend our Membership of the Council to be equally inclusive.

Economic Policy

Questions (22, 41)

Cathal Crowe

Question:

22. Deputy Cathal Crowe asked the Minister for Finance if he will consider defining surfing as a tourist activity in view of the fact that so many surf shops are hives of activity for those visiting coasts (details supplied). [12804/20]

View answer

Steven Matthews

Question:

41. Deputy Steven Matthews asked the Minister for Finance if the VAT rate assigned to the services provided by surfing schools will be examined (details supplied). [12853/20]

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Written answers

Minister for Finance

I propose to take Questions Nos. 22 and 41 together.

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 general, the VAT Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Services such as hotel accommodation, restaurant and catering services and the use of sporting facilities are among the items listed in Annex III therefore, permitting Ireland to apply a reduced rate of VAT.

The provision of services by surfing or kayaking schools are not included in Annex III and as such are subject to the standard rate of VAT, currently 23%. There is no discretion under the Directive for Ireland to apply a reduced rate of VAT to these supplies.

Insurance Coverage

Questions (23)

Jackie Cahill

Question:

23. Deputy Jackie Cahill asked the Minister for Finance the reason equestrian centres cannot get day cover for pony trekking companies (details supplied); and if he will make a statement on the matter. [12872/20]

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Written answers

Minister for Finance

At the outset it should be noted that neither I, as Minister for Finance, nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so. Consequently, I am not in a position to direct insurance companies to provide insurance to equestrian centres or as to how they price their policies or what terms and conditions they apply in those policies. As the Deputy will appreciate, I am also not in a position to comment or adjudicate on the specific type of matter raised in the details supplied.

It is my assumption that the question relates to the ability of the equestrian centre and/or the pony trekking company being able to acquire its claims history records, so as to allow the equestrian centre to source insurance from another provider. As I have stated previously, I strongly believe that insurers should treat their customers honestly, fairly and professionally, in line with the Central Bank’s Consumer Protection Code, and to be of assistance to the Deputy, my officials contacted the Central Bank in relation to the query. The Central Bank informed my officials that while there are detailed rules in its Consumer Protection Code relating to claims processing, the particular issue outlined relating to claims history records is not specifically covered by the Code. However, under the General Principles of the Code, a regulated entity must make full disclosure of all relevant information in a way that seeks to inform the consumer and must supply information to a consumer on a timely basis, having regard to the urgency of the situation and the time necessary for the consumer to absorb and react to the information provided. Therefore, it would be my expectation that customers are entitled to the records containing their claims record. However, as noted already this is not a matter that I can adjudicate on.

Finally, I would note that if a consumer has a complaint with the service of their insurance provider, it is advisable that that they make a complaint to the firm's internal complaint resolution process. This includes if they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law. The Consumer Protection Code requires that if after 40 days the complaint has not been resolved to the customer’s satisfaction, the regulated entity must inform the consumer that they may refer their complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is a statutory official who acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.

Tax Reliefs

Questions (24)

Anne Rabbitte

Question:

24. Deputy Anne Rabbitte asked the Minister for Finance the grants and supports available for making adaptions to cars to help parents travel with children with disabilities; and if he will make a statement on the matter. [13067/20]

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Written answers

Minister for Finance

The Department of Health/HSE administer a Mobility Allowance and Motorised Transport Grant to assist persons with disabilities. Information in relation to these supports can be found in the following link, as well as a broader range of transport supports for persons with disabilities: https://www.gov.ie/en/press-release/eb4974-mobility-allowance-and-motorised-transport-grant/

In addition to these supports, the Disabled Drivers and Disabled Passengers Scheme provides for relief from Vehicle Registration Tax (VRT), Value Added Tax (VAT) and Motor Tax where a vehicle has been specially constructed or adapted for use by a passenger with disabilities and where the VRT and VAT has been paid by the passenger with disabilities or by a family member residing with and responsible for the transportation of that passenger with disabilities. In addition, the related Fuel Grant Scheme provides for a grant in respect of the fuel used in transporting a passenger with disabilities. More details of these reliefs and the grant in respect of fuel usage are available on the Revenue website at the following link: https://revenue.ie/en/importing-vehicles-duty-free-allowances/guide-to-vrt/reliefs-and-exemptions/scheme-for-persons-with-disabilities.aspx .

Living City Initiative

Questions (25)

Cian O'Callaghan

Question:

25. Deputy Cian O'Callaghan asked the Minister for Finance the amount allocated in Budget 2019 for the living cities initiative; the amount spent; his views on the effectiveness of the initiative; if he has considered introducing a grant element to the scheme for those on low incomes; and if he will make a statement on the matter. [13393/20]

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Written answers

Minister for Finance

The Living City Initiative (LCI) (provided for in Finance Act 2013 and commenced on 5 May 2015) is a tax incentive aimed at the regeneration of the historic inner cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting qualifying buildings which are located within pre-determined 'Special Regeneration Areas' (SRAs).

In accordance with my Department's Tax Expenditure Guidelines, the following criteria apply to its evaluation:

As a demand led tax expenditure, LCI is not subject to the estimates process and is not a voted expenditure.

There are three types of relief available:

1. Owner-occupier residential relief;

2. Rented residential relief; and,

3. Commercial/Retail relief.

The following table outlines the cost/uptake for all 3 elements of the scheme combined between 2013 and 2017 (the most recent year for which data are available).

Year	No. of claimants	Max Tax Cost (€M)*	Amount claimed (€M)
2017	20	0.1	0.4
2016	15	0.2	0.5
2015	13	0.2	0.5
2014	N/A	0.1	0.2
2013	N/A	0.05	0.1

*assumed at 40% for IT and 12.5% for CT

Finally, as the Deputy may be aware, LCI was due to terminate on 5 May 2020 in accordance with its sunset clause. However, Finance Bill 2019 provides for an extension of the scheme until 31 December 2022. The rationale behind this decision is to allow time for a series of enhancements to the incentive (as provided for in Budget 2017) to take full effect.

Wage Subsidy Scheme

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Written answers

Minister for Finance

I propose to take Questions Nos. 26, 43, 48, 51, 57 and 69 together.

The Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the 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 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.

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. 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. There are no plans at the present moment to revisit the core criteria.

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.

The new Programme for Government contains a commitment that a July Jobs Initiative will be brought forward which will, among other things, "set out a pathway for the future implementation of the Temporary Wage Subsidy". The matter raised by the Deputies will be one of the many factors that will be taken into account as part of that exercise.

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/

International Bodies

Questions (27)

Róisín Shortall

Question:

27. Deputy Róisín Shortall asked the Minister for Finance if he has considered the recommendations of the UN Special Rapporteur on foreign debt (details supplied); his views on the recommendations; and if he will make a statement on the matter. [13634/20]

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Written answers

Minister for Finance

As the Minister for Finance is Ireland’s Governor to the IMF, I propose to respond to the Deputy’s question as far as it relates to the Fund. I presume that the Deputy is referring to the 2012 set of UN Guiding Principles on Foreign Debt and Human Rights, endorsed by resolution (A/HRC/RES/20/10) obliging governments (lenders and borrowers) to ensure the primacy of human rights when they make lending and borrowing decisions.

I welcome the opportunity that the Deputy’s question affords me to clarify the richness of Ireland’s engagement with International Financial Institutions. While the role of the IMF is probably most often perceived through a fiscal and monetary lens that is accordingly associated with economic policy, our international development policy is also an important driver and compass in our engagement with the Institution. Our current whole-of-Government international development strategy, A Better World, is grounded and informed by the overarching principles in the UN’s Guiding Principles on Business and Human Rights. Echoing the priorities articulated in our international development strategy, Ireland’s IMF engagement advocates the promotion and protection of human rights and prioritises gender equality.

Of course, the IMF's primary mission is to ensure the stability of the international monetary system. It focuses on achieving sustainable growth and a stable macroeconomic environment, which in themselves are supportive of human rights, while encouraging member Governments and other Agencies to work together towards designing development strategies that take human rights into account. Broadly speaking, many of the Fund’s activities – reducing macroeconomic imbalances and structural bottlenecks; eliminating obstacles to international payments; and preventing financial crises - contribute directly or indirectly to reducing poverty and fostering human rights. However, the IMF recognises that while growth, macroeconomic stability, and a well-functioning international monetary system can contribute to an environment that supports poverty reduction, they cannot, by themselves, eliminate poverty or protect human rights.

The Fund has also acknowledged that it must be aware of any adverse effects of the corrective policy actions required as part of individual IMF programmes. Although the costs of adjustment are inevitable with any programme of financial support, the IMF insists that they need not to fall disproportionately on the poor nor compromise human rights. In some cases, the Fund encourages Governments to introduce appropriate social protection measures to help alleviate adverse social consequences during periods of adjustment. With regard to gender specifically, the IMF has increasingly recognised this as a macro-critical issue, noting that reducing gender gaps can have important economic benefits. Gender informs the Fund’s country work both in terms of surveillance and the structural reform commitments required by IMF-supported programmes which aim to promote gender equality. Gender issues are also an integral part of capacity development through technical assistance and training.

The IMF has a system of checks and balances to ensure accountability, ranging from internal and external audits, risk management, and evaluations of its policies and operations. The Fund is also accountable to all 189 member countries through the Board of Governors and the Board of Executive Directors on which all members are represented. The IMF recognises the benefits of a transparent and wide engagement with civil society groups to gather broader perspectives about the impact of the Fund’s work and improve policy advice and analysis and has worked to increase dialogue with CSOs.

In conclusion, I wish to assure the Deputy that a commitment to human rights shall remain central to Ireland’s ongoing engagement with the IMF.

International Bodies

Questions (28)

Róisín Shortall

Question:

28. Deputy Róisín Shortall asked the Minister for Finance if he has considered the recommendation of a group (details supplied) which states that the IMF should only be permitted to impose one condition on borrowers, the full repayment within the agreed upon time limit, thus separating the IMF lending and policy advice functions; his views on the recommendation; and if he will make a statement on the matter. [13635/20]

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Written answers

Minister for Finance

As the Minister for Finance is Ireland’s Governor to the IMF, I propose to respond to the Deputy’s question. I presume that the Recommendations that Deputy Shortall is referring to are those contained in the “Unhealthy conditions: IMF loan conditionality and its impact on health financing” report published by Eurodad (the European Network on Debt and Development), which is a network of 50 civil society organisations (CSOs) from 20 European countries. This report outlined an interesting analysis of the impact of certain loan conditionality with a particular focus on health financing. It is timely that the Deputy raises this Report given the imperative for significantly ramping up the requirement for global healthcare financing against a backdrop of severe economic pressures.

As a recent graduate of a thankfully successful IMF programme ourselves, I can assure the Deputy we are very conscious of the perils of counter-productive conditionality attendant to sovereign financing. However, the objective of conditionality is not to penalise those who access IMF financing but rather to create conditions of sustainability and resilience. As I have recently noted, Ireland's reforms and reorientation after the financial crisis has left us in a far better position to deal with the range of impacts of the current pandemic crisis.

The IMF's primary mission is to ensure the stability of the international monetary system. This is achieved via:

- Surveillance - monitoring member country policies as well as national, regional, and global economic and financial developments;

- Policy advice - promoting policies designed to foster economic stability, reduce vulnerability to economic and financial crises, and raise living standards;

- Capacity development - providing technical assistance and training to help member countries build better economic institutions; and

- Financial assistance - providing loans to member countries that are experiencing actual or potential balance-of-payments problems.

IMF financial assistance is usually provided within the context of individual country adjustment programmes which include a set of corrective policy actions designed to overcome the problems that led the country to seek financial aid. These policy adjustments are an integral part of IMF lending and essential in order to restore sound financial and economic fundamentals and build resilience, thereby avoiding repeated crises and ensuring the long-term sustainability of the Fund’s members. Commitments to undertake certain policy actions as part of an IMF-supported programme are formulated and agreed in close collaboration with the requesting country’s Government. The over-arching goal is always to restore or maintain balance-of-payments viability and macroeconomic stability without resorting to measures that are destructive or harmful to national or international prosperity. These measures are also required to safeguard IMF resources by ensuring that the country’s balance of payments will be strong enough to permit it to repay the loan so that these funds can be made available to other member countries in need.

The conditionality of IMF programmes is broadly assessed by the Fund’s Executive Board and staff in periodic Reviews of Program Design and Conditionality. The most recent Review in 2018 examined the performance of Fund-supported programmes ongoing between September 2011 and end-2017 and concluded that conditionality was generally well-tailored to country needs and programme objectives. However, the Fund did acknowledge the need for IMF-supported programmes to work in concert with national reform plans; to improve two-way communication with the broader public to support buy-in; and to take institutional and political capacity to deliver programme objectives on a realistic timetable into consideration.

It is important to highlight that the financial assistance provided by the IMF is flexible and responsive. This has been aptly demonstrated over the last few months in the Fund’s rapid and comprehensive response to the unprecedented COVID-19 crisis. The IMF has played a significant role in providing vital emergency assistance to help members to deal with the immediate impacts of the COVID-19 pandemic. To date, over 100 of the Fund’s 189 members have requested emergency assistance. Of these, 70 requests for emergency financing have been approved for a total of US$ 24.4 billion. Much of this assistance was delivered through emergency financing instruments which focus on providing a fast-disbursement and limited-conditionality emergency response

Indeed, the Deputy will note that the increased use of these flexible instruments with low conditionality is in line with the thrust of the Eurodad Recommendation.

Tax Collection

Questions (29)

Éamon Ó Cuív

Question:

29. Deputy Éamon Ó Cuív asked the Minister for Finance if the due date for inheritance tax 2020 will be deferred from 31 October 2020 in cases in which the inheritance consists of property in order to afford persons time to dispose of the properties in question which was held up due to the Covid-19 crisis; and if he will make a statement on the matter. [12708/20]

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Written answers

Minister for Finance

The 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.

Minister for Finance

The question relates to an individual who is in receipt of a car provided by his employer, which has not been in use in recent months due to the current COVID-19 related restrictions.

I am advised by Revenue that, for the period of the current COVID-19 related restrictions, it has agreed concessional treatment in relation to the operation of benefit-in-kind (BIK) tax charge on employer-provided vehicles. For the duration of the restrictions on work and travel, where an employee is in receipt of a vehicle (car or van) provided by his/her employer, the following may apply:

(a) Employer Takes Back Possession of the Vehicle

Where an employer takes back possession of the vehicle and an employee has no access to the vehicle, no BIK shall apply for the period.

(b) Employer Prohibits Use

Where an employee retains possession of a vehicle, but the employer prohibits the use of the vehicle, no BIK shall apply if the vehicle is not used for private use. Records should be maintained to show that the employer has prohibited its use and no such use has occurred, e.g. communication from employer, photographic evidence of odometer, etc.

(c) Employer Allows Private Use

Where an employee has a car provided by his/her employer and

- the circumstances in the previous example don’t apply,

- limited or reduced business mileage (if any) is undertaken during the period of the COVID-19 crisis, and

- personal use is limited,

the amount of business mileage travelled in January 2020 may be used as a base month for the purposes of calculating the amount of BIK due. Thus, the percentage applied in the calculation of the cash equivalent of the benefit of a car, which is based on annualised business mileage, may have regard to the actual business mileage for January 2020, for the period of the COVID-19 related restrictions. Appropriate records should be kept, e.g. business mileage travelled in January 2020, amount of private use, photographic evidence of odometer, etc.

Employee Continues Working

Where an employee continues to undertake business travel as usual in an employer-provided vehicle, the usual BIK rules will apply. Further information on the taxation of employer-provided vehicles is available on Revenue's website.

Guidance on the above concession was published by Revenue in March 2020. This guidance and many other tax-related matters pertaining to COVID-19 can be found on Revenue's website.

Value Added Tax

Questions (33)

Emer Higgins

Question:

33. Deputy Emer Higgins asked the Minister for Finance further to Parliamentary Question No. 81 of 16 June 2020, the reason dentists are excluded from a VAT exemption when many other medical professions are included; the reason dentists protecting patients from Covid-19 are treated differently to nursing homes protecting their residents from Covid-19 or doctors protecting their patients from Covid-19; and if he will make a statement on the matter. [12759/20]

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Written answers

Minister for Finance

The European Commission Decision C(2020)2146, adopted on 3 April 2020, provides for the importation of goods to fight the effects of COVID -19 from outside the European Union without the payment of VAT or Customs Duty from January 2020. Such relief is permitted where the goods are imported by or on behalf of State bodies, public bodies and other bodies governed by public law, disaster relief agencies and organisations approved by Revenue including organisations regulated by the State and involved in the care, support and treatment of people at risk of COVID-19 and there is no scope to extend this to other sectors. The goods must be distributed or made available free of charge to the persons affected by or at risk from or involved in combating the COVID-19 outbreak by the bodies and organisations referred to above. The relief is scheduled to end on 31 July 2020 but there is provision for an extension if this is required following a review and consultation with Member States.

Following a request from my Department, Revenue has also implemented, on an administrative basis, the application of the zero rate of VAT to the domestic supply of personal protection equipment, ventilators, thermometers, hand sanitisers and oxygen as necessary to combat COVID-19 when supplied to hospitals, nursing homes, GP practices and the like, for use in the delivery of COVID-19 related health care services to their patients. This concessionary treatment will apply until 31 July, subject to review. The scope of the relief corresponds with the relief on the importation of these goods by the bodies specified in the Commission Decision.

Any further extension of zero rating to cover supplies of medical equipment and/or personal protection equipment to dentists and other sectors and businesses would require a change in legislation at EU level; the VAT Directive would not permit a legislative measure for the application of the zero rate of VAT to such supplies and there are no grounds in the Commission Decision that would support the adoption of such a measure, even on a temporary basis.

It remains the case that businesses which are registered for VAT and incur VAT in relation to goods which will be used for the purposes of the taxable business are entitled to reclaim the VAT incurred through their VAT return.