Written Answers Nos. 86-104
86. Deputy Pearse Doherty asked the Minister for Finance the estimated cost of tax policy items in the July stimulus in 2020 and 2021, disaggregated by measure; and if he will make a statement on the matter. [24617/20]
View answerTax relief measures with a value of approximately €1.4 billion (net cost to Exchequer approximately €900 million) were introduced in the July Stimulus package.
The estimated cost of the reduced interest on tax debts measure is €5m in 2020 and €20 m in 2021.
The Stay and Spend scheme will cost an estimated €270m in total (upper-estimate). The cost of the scheme will arise across the two years 2021 and 2022.
The help to buy measure will cost an estimated additional €18m in total.
Based on previous estimates of tax expenditures on the cycle to work scheme, an estimated tax expenditure of €0.5m in 2020 and €1.5m in 2021 could arise.
The estimated cost of the enhanced and accelerated income tax relief for trading losses incurred by the self-employed is once-off proposal is €150m in 2020.
It is estimated that the reduction in the standard rate of VAT will cost some €440 million in total, €160 million in 2020 and €280m in 2021.
The measure on Corporation tax losses has no net cost in the medium term as it is an acceleration of a relief that already exists in the corporation tax code. However, it will release up to €450 million of liquidity in the current year to companies currently facing significant cash-flow difficulties.
I should add that it is not possible to provide an estimated cost for the debt warehousing measure because it is not clear when the warehoused debt will be paid. The zero interest period will cover most of 2021 for most taxpayers but taxpayer behaviour after that cannot be predicted.
87. Deputy Pearse Doherty asked the Minister for Finance if an updated forecast from that given in the Stability Programme update will be provided with regard to the projected deficit, expenditure and revenue for 2020 in view of recent revenue figures and expenditure items; and if he will make a statement on the matter. [24618/20]
View answerMy Department produces a full set of economic and fiscal forecasts twice a year, in the Stability Programme Update in the spring and again in the Budget in October.
As the Deputy will be aware, the unprecedented economic situation of the last six months has meant that the outlook for this year has been subject to exceptional uncertainty. My officials are currently undertaking work on a set of updated economic and fiscal forecasts as part of the preparations for Budget 2021. This will include the projected deficit outturn for 2020, taking into account all revenue and expenditure developments to date.
The ‘white paper’, the estimates of receipts and expenditure for this year and next in a no policy change scenario, will be published prior to Budget 2021, on Friday, October 9th.
88. Deputy Pearse Doherty asked the Minister for Finance the manner in which payments made under the temporary wage subsidy scheme will be taxed at the of 2020; and the period over which outstanding tax liabilities will be collected in which the tax liability exceeds the value of unused tax credits in the relevant period. [24619/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) was introduced on 26 March to support firm viability and preserve the relationship between the employer and employee insofar as possible. When originally announced, it was expected that this economy-wide measure would be in place for 12 weeks until mid-June but this was later extended until the end of August 2020.
Payments made to employees under the TWSS were an income support and shared the characteristics of income. They were therefore liable to income tax. This is the general position that applies to all social welfare payments in the absence of specific statutory exemptions. In addition, income tax and USC continued to apply in the case of other income earners whose pay was not subsidised by the State, including those who continued to work throughout the period of the strictest public health restrictions. It was appropriate and equitable therefore that payments made under the TWSS should be subject to income tax and USC. A zero rate applied for the purposes of employee PRSI contributions.
Tax was not collected in real-time through the PAYE system while the schemes were in operation. Instead, liability to tax will be calculated by Revenue through the regular end of year review process.
This decision was taken in order to maximise the amount of financial support that was provided to recipients at a time when it was considered that they needed such support most, when the TWSS was first announced and expected to only be in place for 12 weeks.
When the TWSS was extended for a further 10 weeks until the end of August 2020, Revenue took steps to minimise the amount of income tax and USC due, if any, on TWSS payments at the end of the year. This was done by placing all recipients of the TWSS or the Covid-19 Pandemic Unemployment Payment (PUP) on the ‘week 1 basis’ of taxation for the remainder of the year so as to “preserve” unused tax credits that can then be used to offset any income tax or USC liabilities that arise at year end.
In cases where the tax liability for those payments exceeds unused personal and PAYE tax credits for 2020, the level of income tax and USC due may be reduced if the person has additional tax credits, for example health expenses, to offset.
Revenue has also assured me that if any income tax and USC liabilities still arise following the allocation of unused credits, it will work with its customers to collect the outstanding liabilities over an extended period of time. Revenue will be adopting a fair and flexible approach to collecting tax due on payments made under the TWSS or the PUP. This will be achieved by reducing their tax credits for subsequent tax years, thereby minimising any financial hardship to the greatest extent possible.
I am advised that the final calculation of the end of year liability for each person is dependent on a range of factors, including a person’s civil status, his or her available tax credits, the amount received under TWSS and/or PUP, any top-up payments made by the employer, as well as other entitlements and credits, such as health expenses. As there are considerable differences in each person’s tax circumstances, it is not possible to provide details of the estimated undercharges arising from the taxation of payments under the TWSS, nor to estimate the numbers of individuals who may have such undercharges. These details will not be available with any degree of accuracy until after the year end.
89. Deputy Pearse Doherty asked the Minister for Finance when the Revenue Commissioners will publish its review of the operation of section 114 of the Taxes Consolidation Act 1997 regarding flat rate expenses; if he will consider deferring the implementation of planned changes that may arise until January 2022 in view of the income challenges faced by many in the context of Covid-19; and if he will make a statement on the matter. [24620/20]
View answerRevenue conducted a comprehensive review of the administratively based Flat Rate Expenses (FRE) regime in 2018 and 2019. Revenue has advised that the purpose of the FRE review, which involved engagement with relevant representative bodies, was to ensure that the expenses granted to each employment category remain justified and appropriate to modern day employments and work practices. Each category of FRE allowance was examined separately in light of the legislative requirements of section 114 of the Taxes Consolidation Act (TCA) 1997, which provides that expenses are tax deductible only if they are wholly, exclusively and necessarily incurred by the employee in the performance of the duties of his or her employment and are not reimbursed by the employer.
Outside of the FRE regime, all employees retain their statutory right to claim a deduction under section 114 of the TCA 1997 in respect of an expense incurred wholly, exclusively and necessarily in the performance of the duties of their employment, to the extent which the expenses are not reimbursed by the employer.
Revenue agreed to defer the implementation of any planned changes to the FRE regime, pending the outcome of an examination of a number of policy issues that arose during its review relating to the tax deductibility of expenses of employment. This latter examination was carried out by the Tax Strategy Group (TSG), which is overseen by my Department and which met on 10 September 2020. A TSG paper that sets out the consideration of the policy matters that arose during Revenue's FRE review has now been published as part of the regular Budget process. It is available online at: https://assets.gov.ie/86995/006fad3c-ebb5-4b0e-b067-92f8102d6e43.pdf.
While the question of the publication of the review of flat rate expenses is a matter for Revenue to decide upon, given that the deliberations on the policy matters set out in the TSG continue, it would not be unexpected that further action in that regard might await the outcome of those deliberations. Similarly, the question the timing of the introduction of any changes to the FRE regime is solely a matter for Revenue.
90. Deputy Holly Cairns asked the Minister for Finance the amount of VAT collected on feminine hygiene products annually since 2015, in tabular form; and, if he will consider ring-fencing these moneys to fund period poverty programmes. [24670/20]
View answerI am advised by the Revenue Commissioners that feminine hygiene products, such as those that meet the Harmonised System (HS) Heading 9619 classification as per Council Regulation (EEC) No 2658/87, for example tampons and sanitary towels, are VAT zero rated in Ireland. No VAT is collected on the sale of these products and any VAT incurred across the supply chain is refunded.
Other feminine hygiene products not included under the above classification are taxable. It is not possible to provide an estimate of the VAT collected on such sales as traders are not required to separately identify the VAT yield generated from the supply of specific product types or services in their VAT returns.
91. Deputy Holly Cairns asked the Minister for Finance if his Department or bodies working on behalf of his Department are monitoring social media for those that criticise Government policy. [24671/20]
View answerI wish to inform the Deputy that my Department’s Press Office manages the official social media accounts on behalf of the Department in line with the Department’s social media policy. As part of the Press Office’s normal operation, both traditional print and social media are monitored for content of relevance to the work of my Department.
I am informed that a number of bodies under my Department’s aegis do not have social media accounts. For each of the bodies that has social media accounts, they do not have a policy of monitoring for criticism of government policy.
92. Deputy Neasa Hourigan asked the Minister for Finance if he will consider applying for an exemption under EU legislation to levy a 0% VAT rate on cups, period underwear and reusable pads; and if he will make a statement on the matter. [24685/20]
View answerIreland has applied the zero rate of VAT to sanitary towels and sanitary tampons since 1973. Under the VAT Directive Ireland can continue to zero rate these products but cannot extend zero rating to further products, including newer sanitary products such as menstrual cups, menstrual panties and menstrual sponges.
93. Deputy Mairéad Farrell asked the Minister for Public Expenditure and Reform the estimated annual spend by his Department using a firm (details supplied) for public relations. [24547/20]
View answerI wish to advise the Deputy that my Department has no contracts with the company in question.
94. Deputy Holly Cairns asked the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht if Údarás na Gaeltachta will continue to fund Gaeilge based initiatives in third-level institutes to the same levels as previous years in view of the fact it now falls under the remit of her Department. [24648/20]
View answerÚdarás na Gaeltachta, in conjunction with a number of third level institutions, provides supports for research and courses of various types as they relate to the objectives of Údarás na Gaeltachta and the development of Gaeltacht areas. Údarás na Gaeltachta does not envisage any reduction in support previously supplied in this regard at this time.
95. Deputy Matt Shanahan asked the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht if her Department has a strategy in relation to bringing the arts back in a social distanced manner to the rural community; if so, her plans; and if she will make a statement on the matter. [24437/20]
View answerThe Government has published the Resilience and Recovery 2020-2021, the Plan for Living with COVID-19. This Plan sets out clearly the balance between public health, economic and social aspects of living with COVID-19 will operate in the short to medium term. It will to bring greater certainty so that society and business can move forward.
The current Level 2 of the Roadmap is based on a medium-term approach to managing risk. At all times the priority will be to keep our schools open, while keeping people safe and protecting the resilience of our economy and communities.
There is new guidance for indoor and outdoor sports and training together with cultural events in theatres and other arts events. There is also an enhance focus on wellbeing. The new Roadmap is available at this link https://www.gov.ie/en/publication/18e18-level-2/.
The Government's Plan includes provisions in respect of community wellbeing that recognises safe engagement in and watching of our favourite sports and cultural activities, both personal and collective, plays a vital role in protecting our mental health and well-being. The Plan also seeks to facilitate and preserve the significant cultural and sporting landmarks in Irish life, both at local and national level and commits to putting communities and counties at the centre of solutions for their own areas in terms of recovery. In that context, a refreshed Government Wellbeing/Together/Resilience campaign will be developed including a local campaign element delivered by local authorities to promote awareness of and participation in local programmes, initiatives and amenities.
Furthermore, additional supports are being provided to all sectors affected by the impact of COVID-19, additional funding has been provided in 2020 to the arts and performance sectors including an additional allocation of €25m to the Arts Council, and a €5m measure to support live performance under the July Stimulus.
96. Deputy Pádraig Mac Lochlainn asked the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht the amount of financial aid allocated to an association (details supplied) specifically to support community-based boxing clubs with issues arising from the Covid-19 pandemic. [24503/20]
View answerA funding package of up to €70 million was announced on 19th June to support the sport sector, which has been significantly impacted by the Covid-19 pandemic. The funding package will be administered by Sport Ireland, which is the statutory body with responsibility for the development of sport. This funding package includes;
- Funding of up to €40m for the three main field sports organisations – the FAI, the GAA and the IRFU.
- a Resilience Fund of up to €10m to support the National Governing Bodies of Sport,
- a Sports Club Resilience Fund of up to €15m to support clubs, and
- a Sports Restart and Renewal Fund of up to €5m.
The funding will be administered by Sport Ireland and will be invested through new grant schemes with Sport Ireland’s recognised funding partners, i.e. National Governing Bodies of Sport, Local Sports Partnerships and other funded sporting organisations.
The closing date for applications to be submitted to Sport Ireland from funded organisations was Monday 14 September. It is anticipated that an announcement of funding allocations will be made by Sport Ireland in October, dependent on the level of applications received.
Sport Ireland will engage directly with the organisation mentioned by the Deputy in respect of grant funding for the organisation and its affiliated clubs under these grant funding schemes.
97. Deputy Johnny Mythen asked the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht if she will accept the recommendations of the recently formed Tourism Recovery Taskforce and an organisation (details supplied) in their endeavour to save jobs. [24553/20]
View answerI have had a number of engagements with stakeholders in the Irish tourism sector since assuming the office of Minister with responsibility for Tourism and I am very conscious of the damage suffered by the sector as a result of the Covid-19 pandemic. The Tourism Recovery Taskforce was appointed to prepare a Tourism Recovery Plan which will include a set of recommendations on how best the Irish tourism sector can adapt and recover in the changed tourism environment as a result of the crisis. It submitted an Initial Report at the end of June which informed the Government’s thinking for measures adopted as part of the July Stimulus package. I expect to receive its Final Recovery Plan in the coming weeks and, together with my colleagues in Government, I will consider its recommendations at that stage.
98. Deputy Michael Healy-Rae asked the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht if a sports capital grant allocated to a sports complex (details supplied) in 2007 was drawn down; and if she will make a statement on the matter. [24590/20]
View answerThe organisation referred to by the Deputy has been allocated a total of €210,000 under 2 rounds of the Sports Capital Programme. A grant of €90,000 was allocated in 2002 and this grant has been fully drawn down.
The most recent grant of €120,000 was allocated in 2007 and remains fully outstanding. Recently, my Department and the Chief State Solicitor’s Office have been in contact with the organisation and their solicitors with a view to finalising the legal instruments required to allow the grant to be drawn down. In this regard, the organisation has been informed that the outstanding matters need to be finalised before the end of this year or the grant may be withdrawn.
99. Deputy Brendan Smith asked the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht when details of the next sports capital programme will be announced; and if she will make a statement on the matter. [24592/20]
View answerThe Sports Capital Programme (SCP) is the primary vehicle for Government support for the development of sports and recreation facilities and the purchase of non-personal sports equipment throughout the country. The new Programme for Government commits to continuing the SCP and to prioritising the investment in disadvantaged areas.
The most recent (2018) round of the SCP attracted a record 2,337 applications. Allocations were announced in January, May and November of last year with a total of over €56 million awarded to 1,648 different projects. All unsuccessful applicants were given the opportunity to appeal the Department’s decision. In relation to the capital grants announced in November, a total of 122 appeals were submitted by the December deadline. The review of these appeals was completed in April with 6 new allocations approved. The priority to date this year has been to advance all of these projects to ensure the facilities are available for use and that the relevant grants are drawn down.
In relation to future grants, following the finalisation of the appeals process, a full Review of the 2018 round of the SCP was undertaken. This Review has now been complete and the terms and conditions of the next round of the programme will be based on the recommendations in the Review. Work on these terms and conditions is now being finalised and a new round of the programme will be open for applications before the end of the year with an announcement in this regard expected in the coming weeks.
100. D'fhiafraigh Deputy Pearse Doherty den Aire Meán, Turasóireachta, Ealaíon, Cultúir, Spóirt agus Gaeltachta an mbeidh a Roinn ag foilsiú na tuarascála a cuireadh le chéile maidir leis an gcás gnó d’Ionad Óige, Oideachais, Cultúrtha agus Spóirt ar Pháirc Ghnó Ghaoth Dobhair, Contae Dhún na nGall; cén dáta a bheidh an tuarascáil á foilsiú; agus an ndéanfaidh sí ráiteas ina thaobh. [24621/20]
View answerAr mhaithe le tacú tuilleadh le forbairt Ghaoth Dobhair - ar leas na Gaeilge agus gheilleagar an cheantair araon – d’iarr mo Roinn ar Údarás na Gaeltachta taighde a dhéanamh ar na féidearthachtaí a bhaineann le hionad a fhorbairt i nGaoth Dobhair le freastal a dhéanamh ar riachtanais earnáil na gcoláistí samhraidh agus an óige araon.
Tá an taighde seo á dhéanamh ar bhealach a thógann san áireamh, oiread agus is féidir, mianta páirtithe leasmhara agus, ach an oiread le gach togra caipitil eile de chuid an Stáit, riachtanais Chód Caiteachais Phoiblí de chuid na Roinne Caiteachais Phoiblí agus Athchóirithe.
Agus an taighde seo críochnaithe, déanfar an fhéidearthacht maidir leis an togra a fhorbairt tuilleadh a mheas i gcomhthéacs an chiste airgid atá ar fáil do mo Roinn le caitheamh ar thograí caipitil agus na n-éileamh éagsúla ar an gciste sin.
101. Deputy Cian O'Callaghan asked the Minister for Housing, Local Government and Heritage his plans on ensuring appropriate ventilation in nursing homes, pubs and schools; if guidance will be provided for inspections and regulations on ventilation standards such as the use of CO2 monitors; and if he will make a statement on the matter. [24512/20]
View answerI understand that the Safety, Health and Welfare at Work Act 2005 sets out the main provisions in relation to the safety health and welfare of people at work. This legislation is under the remit of my colleague the Minister of Business, Enterprise and Innovation and is overseen by the Health and Safety Authority. In addition, the Department of Health has a role in inspections and regulations for healthcare buildings.
While the building regulations are within my remit, they apply to the design and construction of a new buildings (including a dwelling), the extension or material alteration to an existing building and certain building regulations apply to buildings undergoing a material change of use. Building regulations do not apply to the management, operation or maintenance of existing buildings or indeed ventilation systems.
The building regulations set out minimum performance requirements in 12 parts (classified as Parts A to M). Part F of the Building Regulations provides for adequate and effective ventilation in buildings by limiting the moisture content of the air within the building so that it does not contribute to condensation and mould growth, and by limiting the concentration of harmful pollutants in the air within the building. The associated Technical Guidance Document F provides guidance on how to achieve these requirements. Part F & TGD F were revised in 2019 and there are no plans for a further revision at this point.
102. Deputy Johnny Mythen asked the Minister for Housing, Local Government and Heritage if he will inform the OPW and investigate the findings of a mass grave that was discovered recently by archaeologists on the battlefield of Vinegar Hill, Enniscorthy, County Wexford; and if he will instruct the OPW to preserve and mark the area as a national monument. [24552/20]
View answerI assume the Deputy is referring to an archaeological survey undertaken in 2017 on behalf of Wexford County Council to further assess the findings of a previous survey and to determine the presence or otherwise of additional archaeological features associated with the Vinegar Hill battlefield site. The survey was licenced by my Department under the National Monuments Acts.
The survey report identified a number of intercutting pits which, according to the specialist geophysicist, may be indicative of quarrying or other activity. However, it did not adduce any substantive evidence of the existence of mass burials associated with the 1798 Rebellion or otherwise. Any proposals for development on the site in the future would, of course, be subject to further archaeological assessment and investigation.
103. Deputy Johnny Mythen asked the Minister for Housing, Local Government and Heritage if local authorities will be instructed to consult with all stakeholders when issuing exploratory offshore licences to national or international companies particularly local fishing communities and local businesses. [24531/20]
View answerIn respect to issuing of and consultation on exploratory offshore licenses the local authorities have no functions in this regard. Functional responsibility of the local authorities ends at the high water mark and the seaward side out to 12 nautical miles is a shared responsibility, depending on the activity being licensed, between myself and the Minister for Agriculture, Food and Marine under the Foreshore Act 1933, as amended.
104. Deputy Éamon Ó Cuív asked the Minister for Housing, Local Government and Heritage when local authorities will be informed of the funding to be provided to compensate them for the loss of income suffered from the rates remission given to certain businesses in 2020 due to Covid-19; if the compensation will be 100% of the income loss incurred by the local authorities; and if he will make a statement on the matter. [24546/20]
View answerLocal authorities have a statutory obligation to levy rates on any property used for commercial purposes. An initial three-month waiver of rates for businesses forced to close business due to COVID-19, was announced in May. In order to enhance the supports available for enterprise, and in recognition of the fact that not only were many ratepayers forced to close business due to the public health requirements, but many that remained open suffered significant reductions in turnover, the waiver was extended from three to six months, running until 27 September 2020. The categories of eligible enterprise have also been expanded somewhat. A 100% waiver will be applied to all businesses with the exception of a small number of categories. The rationale for the exclusion of certain categories of ratepayers is that their operations were not as severely impacted by the pandemic, coupled with the need to direct resources appropriately. To support both the local government sector and the ratepayers impacted, €600m has been allocated by Government to fund the cost of a waiver of commercial rates for six months for eligible businesses, which will take the form of a credit in lieu of rates.
This allocation will cover the expected loss in rates income, as estimated by local authorities, for the period of the waiver. Local authorities will receive an initial proportional share of the available funding in the coming weeks. The remaining allocation shall be assigned based upon certified financial returns for each local authority detailing the total amount of credit in lieu of commercial rates applied to ratepayer accounts, during the period 27 March to 27 September 2020.
