Tuesday, 8 Sep 2020

Written Answers Nos. 263-281

Vehicle Registration Tax

Questions (263, 312)

Fergus O'Dowd

Question:

263. Deputy Fergus O'Dowd asked the Minister for Finance if he will respond to concerns (details supplied) in respect of the future of the VRT system; and if he will make a statement on the matter. [21548/20]

Colm Burke

Question:

312. Deputy Colm Burke asked the Minister for Finance if a VRT for new cars will be reduced in order to promote the purchase of new cars which emit less carbon emissions than older cars which purchasers will have replaced; and if he will make a statement on the matter. [22519/20]

Written answers

Minister for Finance

I propose to take Questions Nos. 263 and 312 together.

As the Deputies will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

Question No. 264 answered with Question No. 261.

Wage Subsidy Scheme

Questions (265)

Michael Healy-Rae

Question:

265. Deputy Michael Healy-Rae asked the Minister for Finance if the wage subsidy scheme and other assistance will be given to tour and bus operators (details supplied) to allow them to get back up and running; and if he will make a statement on the matter. [21576/20]

Written answers

Minister for Finance

Our whole economy and labour market have been rapidly transformed by the unprecedented shock of COVID-19 and nearly all sectors have been negatively impacted either directly or indirectly this year.

As a result, the Employment Wage Subsidy Scheme (EWSS) has been deliberately designed as an economy wide measure, open to all sectors as was also the case for preceding Temporary Wage Subsidy Scheme (TWSS).

The primary qualifying criteria for the EWSS is the “turnover test” where the employer must be able to demonstrate that they are operating at no more than 70% from July to December 2020 compared with the same period in 2019.

Such a test can be applied to the whole economy, while at the same time remain focused on employers that are most in need of support.

There is no restriction on the scheme apply to the particular businesses and workers mentioned by the Deputy, and attention is also drawn to the various other Government supports that were announced in the July Stimulus Package such as the Re-Start Grants and Credit Guarantee scheme which may also apply to their sector.

The Government is committed to supporting employers by means of a wage subsidy, and it is recalled that since March 2020 over €2.8 billion of support has been given to over 65,000 employers covering over 660,000 workers. It is currently estimated that the EWSS will utilise a further €2.35 billion in Exchequer resources before its scheduled expiry date at the end of March 2021.

EU Directives

Questions (266)

Pa Daly

Question:

266. Deputy Pa Daly asked the Minister for Finance his views on the implications of the EU fifth anti-money laundering directive with respect to the regulation of digital, virtual and cryptocurrencies; and if he will make a statement on the matter. [21603/20]

Written answers

Minister for Finance

On 30 May 2018, the European Parliament adopted Directive EU 2018/849, known as the Fifth EU Anti-Money Laundering Directive (5AMLD).

With regard to digital, virtual and cryptocurrencies, the Directive applies to providers of certain services relating to virtual currencies. 5AMLD defines virtual assets as “a digital representation of value that is neither issued by a central bank or a public authority, nor necessarily attached to a fiat currency, but is accepted by natural or legal persons as a means of payment and can be transferred, stored or traded electronically.”

As such, the EU 5AMLD supervision requirements extend only to two activities, namely:

1. providers of exchange services between virtual assets and fiat currencies; and

2. custodian wallet providers.

Accordingly, the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2019, which I expect will publish shortly, provides for the addition of “providers engaged in exchange services between virtual currencies and fiat currencies” and “custodian wallet providers” to the category of “designated persons”.

Designated persons are those who have obligations in regard to anti-money laundering and countering the financing of terrorism. It is proposed that the Central Bank of Ireland shall serve as the competent authority for these specific designated persons once those provisions take effect.

Government approval has also been secured to bring forward amendments to the Bill, to suitably strengthen and extend the Central Bank's ability to supervise these entities and activities. These provisions will provide for the necessary registration and fitness and probity regime, required by 5AMLD for virtual asset service providers. It is also proposed to future proof our approach, by introducing amendments, to the published Bill, that will address our obligations as a member of the Financial Actions Task Force (FATF), which is the international organisation that sets global standards for AML/CFT. The FATF Standards go further than 5AMLD, in requiring supervision for five separate activities, including the two mentioned above.

Work is ongoing with the Office of the Attorney General in this regard.

Wage Subsidy Scheme

Questions (267)

Róisín Shortall

Question:

267. Deputy Róisín Shortall asked the Minister for Finance the number of persons in receipt of the temporary wage subsidy scheme in the past months since its introduction in tabular form; and if he will make a statement on the matter. [21786/20]

Written answers

Minister for Finance

Between March and August 2020 over 69,500 employers registered for the Temporary Wage Subsidy Scheme (TWSS) with payments worth over €2.8 billion paid out to a total of 663,100 workers.

Revenue has published detailed statistics related to the TWSS on a weekly basis throughout the duration of the scheme to provide as timely and transparent data on the utilisation and impact of the TWSS as possible.

These statistics are published at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-wage-subsidy-scheme-statistics.aspx.

Motor Insurance

Questions (268)

Róisín Shortall

Question:

268. Deputy Róisín Shortall asked the Minister for Finance the steps he is taking to address the increasingly high cost of motor insurance, in particular for professional lorry and truck drivers; and if he will make a statement on the matter. [21792/20]

Written answers

Minister for Finance

I would like to begin by assuring the Deputy that insurance reform is a key priority for this Government and this is reflected in the Programme for Government. It lays out commitments that are aimed at addressing consumer and business concerns on the cost of insurance. These commitments include increasing transparency; addressing legal reforms in certain areas of civil law; addressing fraud; enhancing and reforming the role of the Personal Injuries Assessment Board, and increasing competition. I believe that the reforms outlined within the Programme will also have a positive impact on motor insurance for professional lorry and truck drivers, whose issues both I and Minister of State Fleming are aware of, from extensive consultations which took place with both the Irish Road Haulage Association and Freight Transport Association Ireland as part of the Cost of Insurance Working Group’s (CIWG) first Report on motor insurance.

The Deputy will recall that the first CIWG Report, published in January 2017, made 33 recommendations which aimed to improve the environment for all motor insurance customers, including lorry and truck drivers. While most of these recommendations have been implemented, it is the Government’s intention to ensure that any outstanding recommendations are completed as soon as possible.

In this regard, I believe that a necessary step that needs to be addressed as a matter of priority is to bring the levels of personal injury damages awarded in this country more in line with those awarded in other jurisdictions. The establishment of the Judicial Council last December is very important in this regard, and it is expected that the Personal Injuries Guidelines Committee will submit draft Guidelines to the Executive Board of the Judicial Council by 28 October. I believe that these guidelines could play a role in the lowering of award levels and a more consistent application of making awards in courts and thus ultimately benefiting lorry and truck drivers as well as other professional drivers.

In conclusion, making progress will be a cross-Departmental approach and we will build and expand upon previous work done by the Cost of Insurance Working Group. Both Minister of State Fleming and I will be cooperating with relevant Ministerial colleagues. In that regard, it is my intention, along with An Tánaiste, to bring proposals to Government shortly that will set out the modalities for implementing the Programme for Government commitments and identifying areas for early action.

Question No. 269 answered with Question No. 261.

Tax Rebates

Questions (270)

Duncan Smith

Question:

270. Deputy Duncan Smith asked the Minister for Finance the amount claimed on the Med2 form for dental expenses in each of the years 2017 to 2019 and to date in 2020; and if he will make a statement on the matter. [22254/20]

Written answers

Minister for Finance

I am advised by Revenue that the Med2 form is not returned by claimants (to Revenue) and therefore it is not possible to determine the amount of health expenses claimed for non-routine dental work. In claims submitted to Revenue for tax relief on health expenses, dental expenses are combined with other health expenses and therefore disaggregated data are not available.

The 2019 Form 11 tax return was amended to include a separate entry for non-routine dental expenses. Once these returns have been filed and the data has been processed, information on non-routine dental expenses will be published in Revenue’s Cost of Tax Expenditures publication, available at https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx

State Savings Schemes

Questions (271)

Matt Carthy

Question:

271. Deputy Matt Carthy asked the Minister for Finance the State agency which has oversight of State savings accounts administered via An Post and to whom persons who have an issue with the practices of An Post with administration of savings accounts and schemes should address grievances; and if he will make a statement on the matter. [22423/20]

Written answers

Minister for Finance

State Savings products are offered by the Minister for Finance acting through the National Treasury Management Agency (NTMA) pursuant to the powers conferred on the NTMA by the National Treasury Management Agency Act 1990 and the National Treasury Management Agency Act 1990 (Delegation of and Declaration as to Functions) Order 1990 (S.I. No. 277 of 1990).

Persons that might be dissatisfied with service or products may raise their concerns by completing the relevant customer complaint form, by writing a letter or sending an e-mail to [e-mail], as covered in the State Savings Customer Complaints process. Full details are available on www.statesavings.ie .

If persons are not satisfied with the outcome of the complaints procedure or believe the final response to be in error, they may appeal the response in writing giving reasons, to the State Savings Complaints Appeals Unit, GPO, or by email at [e-mail] .

State Savings Schemes

Questions (272)

Matt Carthy

Question:

272. Deputy Matt Carthy asked the Minister for Finance the regulations in place with regard to proof of identification and verification with regard to accessing and or closing financial services or accounts administered by An Post or other bodies; and if he will make a statement on the matter. [22424/20]

Written answers

Minister for Finance

State Savings products are offered by the Minister for Finance acting through the National Treasury Management Agency (NTMA) pursuant to the powers conferred on the NTMA by the National Treasury Management Agency Act 1990 and the National Treasury Management Agency Act 1990 (Delegation of and Declaration as to Functions) Order 1990 (S.I. No. 277 of 1990).

State Savings products are subject to published Terms and Conditions which contain the applicable requirements regarding evidence and verification of the identity of purchasers/holders. Prize Bonds, administered by the Prize Bond Company, are also subject to the Prize Bonds Regulations 1993 to 2019 which contain a regulation regarding evidence of identity.

Personal data (including Personal Public Service Number) provided by holders is processed for the purposes of transactions in respect of State Savings products, the administration of State Savings products and associated legal purposes including compliance with anti-money laundering requirements under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 as amended. Under such legislation, designated bodies, such as An Post, are required by law to verify customers’ identities.

State Savings Schemes

Questions (273)

Matt Carthy

Question:

273. Deputy Matt Carthy asked the Minister for Finance the personally identifiable information required to be held by the provider of State savings or other financial products, services in order to ensure a person accessing an account, service in person can be appropriately identified; and if he will make a statement on the matter. [22425/20]

Written answers

Minister for Finance

State Savings products are offered by the Minister for Finance acting through the National Treasury Management Agency (NTMA) pursuant to the powers conferred on the NTMA by the National Treasury Management Agency Act 1990 and the National Treasury Management Agency Act 1990 (Delegation of and Declaration as to Functions) Order 1990 (S.I. No. 277 of 1990).

State Savings products are subject to published Terms and Conditions which set out the information to be provided by purchasers/holders in order to confirm their identity and to enable the NTMA’s agents to verify the identity of holders.

Holders must confirm Surname, First Name, Date of Birth, Address and Personal Public Service Number (PPSN). The NTMA is a ‘specified body’ for the purposes of sections 262 to 270 and Schedule 5 of the Social Welfare Consolidation Act 2005, as amended. This provides the power to the NTMA, acting on behalf of the Minister for Finance, to request holders of State Savings products to provide their PPSN in order to verify the identity of such holders.

Personal data (including PPSN) provided by holders is processed for the purposes of transactions in respect of State Savings products, the administration of State Savings products and associated legal purposes including compliance with anti-money laundering requirements under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 as amended.

Covid-19 Pandemic

Questions (274)

Alan Kelly

Question:

274. Deputy Alan Kelly asked the Minister for Finance his plans to assist workers with the higher household costs that arise from remote working arrangements in view of the increased prevalence of remote working as a result of the Covid-19 pandemic, for example, by raising the threshold of up to €3.20 per day which is payable by employers relating to increased costs due to remote working or by altering the amount claimable by workers under section 114 of the Taxes Consolidation Act 1997 in situations in which employers do not make the payment; and if he will make a statement on the matter. [21099/20]

Written answers

Minister for Finance

Revenue operate an administrative practice relating to e-Workers (or remote workers), who incur certain expenditure in the performance of the duties of their employment from home. Revenue have confirmed that PAYE workers using their primary residence as a workplace during Covid-19 restrictions qualify as e-Workers.

Remote workers will incur certain expenditure in the performance of their duties from home, such as additional heating and electricity costs. Revenue allow an employer to make payments up to €3.20 per day to employees, subject to certain conditions, without deducting PAYE, PRSI, or USC.

Where an employer does not pay €3.20 per day to an e-Worker, or where an employee incurs costs in excess of the €3.20 per day paid by the employer, the employees concerned retain their statutory right to claim a deduction under section 114 of the Taxes Consolidation Act 1997 in respect of actual vouched expenses they have incurred wholly, exclusively and necessarily in the performance of the duties of their employment. PAYE employees are entitled to claim costs such as additional light and heat in respect of the number of days spent working from home, apportioned on the basis of business and private use.

PAYE workers can claim e-working expenses by completing an Income Tax return at year end by logging into the myAccount facility on the Revenue website.

Revenue also advise that the provision of equipment, such as computers, printers, scanners and office furniture by the employer to enable the employee work from home will not attract a Benefit-In-Kind charge, where the equipment is provided primarily for business use. The provision of a telephone line, broadband and such facilities for business use will also not give rise to a Benefit-in-Kind charge, where private use of the connection is incidental.

Revenue have advised that they have published a Tax and Duty Manual entitled ‘e-Working and Tax’ on their website: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-02-13.pdf . It contains detailed guidance on the subject of e-Working and tax and includes guidance for taxpayers on how to calculate and submit claims for expenses relating to e-Working.

I would like to acknowledge the flexibility that has been shown by both workers and employers in respect of working from home, and note that while some additional costs may be incurred for households there may also be savings; for example from reduced commute costs. I am satisfied that the existing provisions of the tax code are sufficient to take account of the changing nature of the work environment at present, but will continue to keep this matter under review.

Mortgage Data

Questions (275)

Colm Burke

Question:

275. Deputy Colm Burke asked the Minister for Finance if his attention has been drawn to the fact that a bank (details supplied) is selling a portfolio of distressed mortgages on family homes to a vulture fund between the end of July and mid-September 2020; and if he will make a statement on the matter. [21146/20]

Written answers

Minister for Finance

As the Deputy is aware I as Minister for Finance have no role in the day to day commercial activities of any bank operating in the State.

My officials have received the following statement from AIB:

"AIB has no plans to sell a loan portfolio as described above. AIB has reduced non-performing exposures from €31bn to €3.8bn, primarily by working with customers to implement sustainable long-term solutions. We remain focused on helping customers through this difficult period, while also managing non-performing loans levels to a normalised level."

Covid-19 Pandemic

Questions (276)

Christopher O'Sullivan

Question:

276. Deputy Christopher O'Sullivan asked the Minister for Finance if he is considering waiving the court fees and excise duties for the 2020/2021 licensing year in view of the fact that licensed premises have been closed for a large portion of the 2019/2020 licensing year (details supplied). [21147/20]

Written answers

Minister for Finance

The Deputy will be aware of the series of measures recently announced by the Government to support the on-trade. This includes the waiver of charges associated with liquor licence renewal. Further details may be found at the link below:

https://www.gov.ie/en/press-release/ce77b-government-announces-16-million-package-for-pubs-bars-and-nightclubs/

Help-To-Buy Scheme

Questions (277)

Colm Burke

Question:

277. Deputy Colm Burke asked the Minister for Finance the criteria for the help-to-buy scheme; the criteria in cases in which contracts predate the announcement of the new changes to the scheme; and if he will make a statement on the matter. [21151/20]

Written answers

Minister for Finance

The Help to Buy (HTB) incentive, is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.

Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme. A claimant under the scheme must make an application confirming he or she meets various conditions specified in the section, including that he or she is a first-time purchaser and has completed a tax return form and is tax compliant for each of the tax years for which a claim is being made. The obligations apply to each party, where there is more than one party to a claim.

The definition of “first-time purchaser” for the purposes of the scheme is an individual who, at the time of making a claim under the scheme, has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling. The “qualifying residence” must be occupied as the sole or main residence of the first-time purchaser.

The Government recently announced a temporary enhancement to the existing HTB scheme for the remainder of 2020 as part of the July Stimulus plan. The legislation to give effect to this increase has been outlined in the Financial Provisions (Covid-19) (No.2) Act 2020 and was signed into law on 1 August 2020.

In summary, the legislation provides that where applicants

(i) enter into a contract for the purchase of a new house or apartment, or

(ii) make the first draw down of the mortgage in the case of a self-build property,

during the period from 23 July 2020 to 31 December 2020, they will be eligible for increased relief under the HTB scheme to the lesser of:

- €30,000 (increased from €20,000),

- 10 per cent (increased from 5 per cent) of either the purchase price of the new home or, in the case of self builds, the completion value of the property, or,

- the amount of Income Tax and DIRT paid in the four years prior to making the application.

All other conditions of the original HTB scheme remains the same.

To the extent that the conditions outlined above for the enhanced HTB relief are not satisfied, the original HTB relief is still available, subject to satisfying the conditions.

If an applicant is purchasing a house (rather than self-building) and has entered into a contract to purchase his or her first home prior to 23 July 2020, he or she will not satisfy the conditions to avail of the temporary enhanced HTB relief. However, if an applicant is self-building a new home, and he or she draws down the first tranche of the mortgage between 23 July and 31 December 2020, then he or she may be able to avail of the temporary enhanced HTB relief.

I am advised by Revenue that it has published Tax and Duty Manual 15-01-46 on its website, which contains detailed guidance on all matters relating to HTB, including the temporary enhanced HTB scheme.

Question No. 278 answered with Question No. 256.

Mortgage Lending

Questions (279)

Paul Murphy

Question:

279. Deputy Paul Murphy asked the Minister for Finance if his attention has been drawn to the fact that a bank (details supplied) is discriminating against mortgage applicants who are recipients of the temporary wage subsidy scheme; and if he will engage with the bank to ensure that income from the scheme is treated equivalent to other income. [21300/20]

Written answers

Minister for Finance

As you will be aware both officials and myself have engaged and will continue to engage extensively with the Banking and Payments Federation (BPFI) and the banks directly in relation to supports for personal and business customers affected by the COVID-19 crisis. Officials in my Department are alert to issues raised directly by the public and these inform the Department’s ongoing engagement process and policy formation.

The Temporary Wage Subsidy Scheme has been one of the main tools with which we have protected the income of employees who otherwise would not be working. However, whilst I acknowledge the seriousness of the issue you have raised and its impact on those affected, what I cannot do is mandate how temporary payments received under the Temporary Wage Subsidy Scheme are treated in lending sustainability evaluations by regulators and lenders.

As Minister for Finance I cannot mandate or overrule the internal risk assessment processes in any bank, even one in which the State has a shareholding. Furthermore I am specifically precluded from intervening in the case of any individual customer with any bank, even one in which the State has a shareholding. Decisions in this regard are the sole responsibility of the board and management of the banks which must be run on an independent and commercial basis. The independence of banks in which the state has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market.

Furthermore the banking crisis we faced over ten years ago was fuelled by unsustainable lending. There are now thankfully far firmer regulatory controls and restrictions on lenders. Speaking on this particular issue, on 7 May the Governor of the Central Bank publicly noted that if an individual borrower’s circumstances have changed such that doubt is cast over the sustainability of potential borrowing, it is in the best interests of the borrower and the bank if the situation is reviewed.

The European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (CMCAR) apply here. These mandate that before concluding a mortgage credit agreement, a lender must make a thorough assessment of the consumer’s creditworthiness. That assessment must take appropriate account of factors relevant to verifying the prospect of the consumer being able to meet his or her obligations under the credit agreement. The CMCAR also 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.

This overall regulatory framework means a decision to grant or refuse an individual application for mortgage credit is a commercial decision to be made by the regulated entity. Where a formal loan offer is made by a lender, the loan offer may contain a condition that may 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 loan offer is also a commercial decision for the lender.

These overlapping and complimentary regulations are designed to protect consumers, prevent risky unsustainable lending, protect the integrity of the financial system and preserve competition in the market.

Insurance Industry

Questions (280)

Rose Conway-Walsh

Question:

280. Deputy Rose Conway-Walsh asked the Minister for Finance if his attention has been drawn to the fact that emergency medical technicians who are fully registered with the pre-hospital emergency care council and in possession of unendorsed C1 licences are unable to obtain insurance cover for driving ambulances in the private network in cases in which they are under 23 years of age even though they are able to do so in the national ambulance service; the actions that will be taken to address the situation; and if he will make a statement on the matter. [21365/20]

Written answers

Minister for Finance

As the Deputy is aware, as Minister for Finance I am responsible for the development of the legal framework governing financial regulation, and neither I nor the Central Bank of Ireland has the power to direct insurance companies on the pricing or provision of insurance products. Indeed, the EU framework for insurance (the Solvency II Directive) 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. The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. These are considered by insurance companies on a case-by-case basis.

In relation to insurance for private ambulance services, I understand that as private businesses, they obtain insurance on the market. My officials contacted Insurance Ireland about this and I understand from that there are a number of insurance companies who provide insurance to private ambulance operators. In addition, such insurance may be considered a form of fleet insurance depending on the number of vehicles the service has. Insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. Factors include those such as the age and type of vehicles, the number of drivers, and how the vehicle is used. Insurers do not all use the same combination of rating factors, prices vary across the market and consumers are free to choose. Insurance companies also price in accordance with their own past claims experience, and many have exclusions as to the age of drivers on such fleet policies.

Finally, with regard to the specific case in the details supplied, the relevant individuals and private ambulance providers should contact their insurer or broker directly to see if a solution is available. In addition, if an individual is having difficulty in receiving an insurance quotation, or a private company has issues in relation to named drivers on their fleet policy, they may wish to use the Declined Cases Agreement (DCA). Under the terms of the DCA, which is adhered to by all motor insurers in Ireland, the insurance market will not refuse to provide insurance to an individual seeking insurance if the person has approached at least three insurers and has not been able to obtain cover from them. In this regard, there are further details available on the Insurance Ireland website, while more generally, Insurance Ireland also operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. The relevant contact details are: [e-mail] or [e-mail].

Insurance Costs

Questions (281)

Niall Collins

Question:

281. Deputy Niall Collins asked the Minister for Finance if issues raised in correspondence by a person (details supplied) regarding insurance for the sport horse industry will be addressed; and if he will make a statement on the matter. [21400/20]

Written answers

Minister for Finance

As the Deputy will appreciate, it would be inappropriate for me, as Minister for Finance, to comment on individual cases such as that of his constituent. However, the issue of the cost and availability of insurance for many businesses and consumers is an issue that both Minister of State Fleming and I are very much aware of.

Unfortunately, there is no single policy or legislative measure to remedy this issue and there are also many constraints faced by the Government in trying to address it, in particular the fact that it cannot direct the courts as to the award levels that should be applied, or direct insurance companies as to their pricing levels. As referenced in relation to award levels in the details supplied, I believe that a necessary step that needs to be addressed as a matter of priority is to bring the levels of personal injury damages awarded in this country more in line with those awarded in other jurisdictions. The establishment of the Judicial Council last December is very important in this regard, and it is expected that the Personal Injuries Guidelines Committee will submit draft Guidelines to the Executive Board of the Judicial Council by 28 October. I believe that these guidelines could play a role in the lowering of award levels and a more consistent application of making awards in courts and thus ultimately benefiting consumers and businesses such as referred to by the Deputy.

In addition to this, I can assure the Deputy that the Government is actively prioritising reform of the insurance sector with particular emphasis on motor, public liability and employer liability insurance, the latter two of which are very relevant to the equestrian sector. In that regard, the “Programme for Government – Our shared Future” document lays out commitments that are aimed at addressing consumer and business concerns on the cost of insurance. These commitments include increasing transparency; reviewing duty of care legislation; looking at how to further enhance the role of the Personal Injuries Assessment Board, and increasing competition in the market.

In conclusion, making progress will be a cross-Departmental approach and we will build and expand upon previous work done by the Cost of Insurance Working Group. Both Minister of State Fleming and I will be cooperating with relevant Ministerial colleagues. In that regard, it is my intention, along with An Tánaiste, to bring proposals to Government shortly that will set out the modalities for implementing the Programme for Government commitments, as well as identifying our near term priorities so that progress can be made.