Written Answers Nos. 220-238
220. Deputy Richard Bruton asked the Minister for Transport if he has considered making the wearing of helmets by cyclists mandatory; and his plans to update legislation regarding cycling in view of the big uptake in use and the hazard posed by some practices on the roads at present. [25418/20]
View answerMaking the wearing of helmets compulsory for cyclists is an issue which has arisen a number of times over the years. It is a long-standing Government policy to recommend and promote the wearing of helmets. The Rules of the Road booklet encourages the use of cycle helmets and draws attention to their safety benefits, and the Road Safety Authority, the agency responsible for public education and awareness, strongly encourages their use.
However, opinion is divided internationally on whether the wearing of safety helmets is best achieved through the introduction of statutory requirements or through other strategies. Making the wearing of helmets compulsory would raise a number of difficulties. For example, if wearing helmets were made compulsory it would be necessary to have some kind of enforcement system with penalties, presumably fines, for cycling without a helmet. Whilst enforcement might be possible, it could create considerable strain on Garda resources, and indeed on the courts.
The matter was considered in the context of the preparation of the Road Safety Strategy 2013 – 2020. Although the Strategy strongly favours encouraging the use of helmets, it stopped short of recommending making their wearing compulsory. International studies also show that making the wearing of helmets mandatory results in a decrease in the number of people cycling.
I am of the view that the wearing of cycle helmets is better achieved by way of educational and publicity campaigns rather than by pursuing a punitive approach to the issue, particularly having regard to the large numbers of children and young people who cycle. Consequently I have no plans to make the wearing of bicycle safety helmets a legal requirement at this time.
221. Deputy Louise O'Reilly asked the Minister for Transport if there will be an extension to the National Transport Authority’s rules compelling taxi drivers to replace their cars after either 10 or 15 years in view of the current crisis facing the taxi sector and the fact that many drivers will be unable to afford to purchase a new vehicle; and if not, if there be will supports for taxi drivers that have to purchase a new vehicle. [25463/20]
View answerThe regulation of the small public service vehicle (SPSV) industry, including SPSV licensing, is a matter for the National Transport Authority (NTA) under the provisions of the Taxi Regulation Act 2013.
Given the role of the NTA as regulator, I have referred your question to the Authority for direct reply to you. Please advise my private office if you do not receive a response within 10 working days.
222. Deputy Louise O'Reilly asked the Minister for Transport if his Department will be legislating for the use of electronic scooters; and if he will make a statement on the matter. [25464/20]
View answerI intend to legislate for e-scooters in accordance with the Programme for Government. This will involve identifying and developing appropriate amendments to primary legislation across a range of complex areas. The work must be carried out in such a way that it does not undermine the overall framework of Road Traffic Law or Road Safety in general. The Government's current legislative priorities are the necessary measures to manage the Covid 19 crisis and to address its social and economic consequences.
My officials are currently looking at how progress towards the commitment can be made in light of the foregoing, noting that experience overseas has shown that a change of regime may have consequences for road safety, the management of roads and footpaths, the movement of traffic, public transport and goods, public health and the environment.
223. Deputy Alan Kelly asked the Minister for Transport the status of a roads project in County Kildare (details supplied); the timeline for completion; and if he will make a statement on the matter. [25494/20]
View answerThe improvement and maintenance of regional and local roads is the statutory responsibility of the relevant local authority in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from the Council's own resources supplemented by State road grants.
Project Ireland 2040 identifies a programme of regional and local road improvement projects to be progressed with grant support and the Athy Southern Distributor Road is one of those projects. Implementation of the programme of projects is on a phased basis and progression of each project is subject to the profile of annual capital allocations available to the Department.
Implementation of the Athy scheme is the responsibility of Kildare County Council. Grant funding of €3.5 million has been allocated to the Council for this project in 2020. My Department recently approved this project to proceed to tender for the main construction contract.
224. Deputy Fergus O'Dowd asked the Minister for Finance if he will respond to concerns by persons (detail supplied) in relation to the deadline for filing company annual returns and income tax returns; and if he will make a statement on the matter. [24797/20]
View answerI am advised that Revenue has announced a further four-week extension to the Income Tax Pay & File deadline for customers making their returns and payments through the Revenue On-Line System (ROS). The additional time, to Thursday 10 December 2020, is in recognition of the challenges being experienced by the business community and by tax practitioners arising from the COVID-19 pandemic.
The extension applies to customers who file their 2019 Form 11 Income Tax return, pay any balance due for that year and pay Preliminary Tax for 2020 through ROS.
The extended filing date is also applicable to beneficiaries who received gifts or inheritances with valuation dates in the year ended 31 August 2020, who make a Capital Acquisitions Tax (CAT) return and the appropriate payment through ROS.
The filing of annual company returns to the Companies Registration Office is a matter for my colleague the Minister for Business, Enterprise and Innovation.
225. Deputy Mattie McGrath asked the Minister for Finance if he will seek to reduce tourism VAT to 9% in order to support the hotel and hospitality industry which is at imminent risk of a further 100,000 job losses and hotel closures unless restrictions limiting events to six persons are lifted; and if he will make a statement on the matter. [24823/20]
View answerAs the Deputy will be aware, it is a longstanding 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.
226. Deputy Catherine Connolly asked the Minister for Finance the position regarding the payment of the temporary wage subsidy scheme with particular reference to the way in which it applies to workers of a company (details supplied); and if he will make a statement on the matter. [24849/20]
View answer230. Deputy Emer Higgins asked the Minister for Finance the way in which claims for employment wage subsidy scheme by employees of an airline (details supplied) are being processed; and if he will make a statement on the matter. [24950/20]
View answerI propose to take Questions Nos. 226 and 230 together.
The Deputies will be aware that under Section 851A of the Taxes Consolidation Act 1997, Revenue is precluded by reason of its taxpayer confidentiality obligations, from providing any details in relation to the company in question.
I have been advised by Revenue that questions relating to an individual’s entitlements and rights in an employment context, what wages an employer may be legally obliged to pay employees in respect of hours worked and an employer’s capacity to pay wages to employees in light of the impact of the Covid-19 pandemic on the employer’s business are all matters that are outside the remit of the Temporary Wage Subsidy Scheme.
Similarly, in relation to the Employment Wage Subsidy Scheme, the scheme does not affect any legal obligations that the employer may have to their employee as regards any terms, conditions or entitlements of their employment, including pay.
227. Deputy Cathal Crowe asked the Minister for Finance the status of the help-to-buy scheme application made by a person (details supplied). [24893/20]
View answerThe Help to Buy (HTB) scheme was introduced to help first-time buyers of newly built homes. The scheme is applicable where a first-time buyer purchases or self-builds a new residential property.
Revenue has advised me that the person in question submitted a HTB application in respect of a renovation to an existing dwelling rather than a new build and on that basis does not qualify for the scheme. Revenue has confirmed to the person that such a renovation does not qualify for the scheme and requested that she provide further supporting documentation if she believes that it does qualify. Revenue further advise me that, once the supporting documentation is received, they will consider the application further.
228. Deputy Cathal Crowe asked the Minister for Finance if full or partially demolished and rebuilt homes meet the criteria of the help-to-buy scheme; and if he will make a statement on the matter. [24894/20]
View answerThe 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.
In addition to the conditions laid down in section 477C Taxes Consolidation Act 1997 (TCA), including that the property is occupied as the sole or main residence of a first time purchaser, section 477C(2) defines a ‘qualifying residence’. The legislation is very specific as to the definition of a qualifying residence. It must be a new building which was not, at any time, used or suitable for use as a dwelling. If the property was non-residential, but has been converted for residential use, it may qualify for HTB. Renovation or refurbishment of old houses to either upgrade or reinstate them for habitation does not qualify for HTB.
For a property to qualify for Help to Buy it must be new, or, converted for use as a home not having been previously been used as a home. In the circumstances where the house was previously used as a dwelling but knocked down and rebuilt, then it is “new”. First-time buyers may purchase a site containing a house which is derelict and which they plan to demolish, in whole or in part, with the intention of building a new house. First time buyers intending to undertake such purchases should contact Revenue via MyEnquiries outlining the specific circumstances of their case and Revenue will consider them on a case by case basis.
For Revenue to make an assessment that the dwelling being built on the site is ‘new’, sufficient evidence is required which shows that the previous dwelling was demolished and replaced as opposed to being extended/refurbished. Revenue also require as much evidence as possible from the builder, engineer or other professionals working on the project, about the condition of the former dwelling which made it uninhabitable or unsound and required that it was demolished (and the extent of demolition involved). If there is any other information (photos, etc.) that’s relevant in helping Revenue understand that the property meets the criteria in the legislation, this should be included.
229. Deputy Bríd Smith asked the Minister for Finance if the employment wage subsidy scheme will be reinstated at the full rate per week for the highly skilled staff and businesses working in the live events sector that are anxious to return to work; and if he will make a statement on the matter. [24906/20]
View answer269. Deputy Patricia Ryan asked the Minister for Finance if the employment wage subsidy scheme will be reinstated at the full rate per week for workers in the live performance and events sector; and if he will make a statement on the matter. [25587/20]
View answerI propose to take Questions Nos. 229 and 269 together.
The Temporary Wage Subsidy (TWSS) was in place for 22 weeks between 26 March and 31 August. It was introduced as an emergency income support for employees of vulnerable firms (where turnover had reduced by at least 25% during Q2 while the strictest public health measures were in place) and was paid via the employer so as to maintain employment links between the employee and employer insofar as was possible. To that end, the rate of Employers' PRSI was also significantly reduced to 0.5%. The level of income given to each individual employee was based on previous wages received in January and February 2020.
Since 1 September, the TWSS has been replaced by the Employment Wage Subsidy Scheme (EWSS) which will be in place until the end of March 2021. The EWSS is an employer subsidy to help support viable firms and encourage employment. The level of subsidy given to the employer is based on the number of paid workers on the payroll per week, applying prospectively so that claims may be made for new hires and seasonal workers. The primary employer qualification is based on the employer’s turnover in Q3 and Q4 2020 being less than 70% when compared with the same pre-pandemic period in 2019. A flat-rate per head subsidy of either €203 or €151.50 may be claimed for every employee who is paid between €151.50 and €1,462 per week. The EWSS will also continue the reduced rate of Employers' PRSI of 0.5%.
The adaptation from the TWSS to the levels of support in the EWSS will allow employers to rely on the continuation of support over a longer period of up to 8 months while also ensuring such support is sustainable and affordable. Many of the strictest public health restrictions on the economy have been eased and it is expected that businesses are able to shoulder more of the economic burden of their businesses, so it is appropriate that the level of State subsidy be moderated. At the same time, it is recognised that economic outputs are unlikely to return to normal for many businesses for much of the rest of 2020, which is why the Government remains committed to supporting employers by means of a wage subsidy.
I am aware of the concerns that have been raised regarding the pace of recovery for some sectors of the economy and that it has been suggested that the application of the EWSS should be delineated on the basis of explicit sectoral qualification criteria. However, I would note that the reality of COVID-19 is that our whole economy and labour market have been rapidly transformed by this unprecedented shock and nearly all sectors have been negatively impacted either directly or indirectly. The EWSS has therefore been deliberately designed as an economy wide measure that is open to all sectors as was the case for the TWSS before it. The availability of the support by reference to a turnover test means that the scheme can be applied across the whole economy while at the same time remain targeted at employers who are considered to be most in need of support, including the sector mentioned by the Deputies.
I am advised by Revenue that, as of 21 September 2020, there were 35,097 employers registered for the EWSS which is considered a strong level of participation so far and, notably, proportionately more than half of all those who availed of the TWSS over the whole duration of that scheme. This is also 78% of all employers who availed of the TWSS at its close in August, with more applications expected before the end of September. In addition, I would note that the level of subsidy being granted under the EWSS is commensurate with the average payment per worker under the TWSS which had been reducing since the start of June and since 14 August was €283 across all recipients and €219 in the case of first-time recipients. The reduced rate of Employers' PRSI mentioned above is also of significant financial benefit to employers.
As a result, there are no plans at the present moment to re-visit the rates of payment along the lines mentioned by the Deputies. The operation of the EWSS and its effectiveness will be kept under close review over the coming months and I am obliged to monitor and superintend the utilisation of the EWSS and may make certain adjustments across the whole scheme where I determine that these are necessary.
For those businesses who need further support, there are a number of options open to them – including State backed loans which may be repaid using EWSS funds as well as grants. Particular attention is drawn to the comprehensive package of business and employer supports that have been made available as part of the July Stimulus Plan - including the Credit Guarantee Scheme, the SBCI Working Capital Scheme, Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.
Finally, in the case of the sector highlighted by the Deputies, I would note that my colleague the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht, Ms. Catherine Martin T.D., has recently announced the establishment and membership of the Arts and Culture Recovery Task Force and funding for a Live Performance and Music Industry Support Package.
231. Deputy Pearse Doherty asked the Minister for Finance when an outstanding renal travel payment will issue to a person (details supplied) in County Donegal; and if he will make a statement on the matter. [25040/20]
View answerI am advised by Revenue that it has not been possible to identify the person in question from the information provided by the Deputy.
I am also advised that Revenue made direct contact with the Deputy’s office to confirm the person’s details and is awaiting a reply. Once the person’s identity is established, Revenue has assured me that the matter will be dealt with as a priority.
232. Deputy Brendan Griffin asked the Minister for Finance if a matter (details supplied) regarding the employment wage subsidy scheme will be adjusted; and if he will make a statement on the matter. [25293/20]
View answerThe design of the Employment Wage Subsidy Scheme (EWSS) reflects the changing environment around the COVID-19 pandemic which has shifted from crisis mode to one of living alongside the virus, in line with the recently announced Resilience and Recovery 2020-2021: Plan for Living with COVID-19. As a result, a number of flexibilities have been included in the EWSS, while the rates and eligibility criteria have been modified so that the support is sustainable from an Exchequer cost perspective.
The primary qualifying criteria for the EWSS is that the employer must be able to demonstrate that they are operating at no more than 70% in either the turnover of the employer’s business or the customer orders received by the employer by reference to the period from July to December 2020 compared with the same period in 2019. This “turnover test” requires a comparison of the firm’s pre-pandemic operations with their current operations and has been specifically designed so as to target the subsidy at otherwise viable employers whose businesses continue to be adversely impacted by COVID-19.
There is additional flexibility in the application of the turnover test to allow employers to take account of potentially sudden changes in turnover on a month-to-month “opt-in/opt-out” basis. Under the legislation, an employer is required to carry out a review of their turnover each month and confirm that they are still eligible for the scheme. At the same time, there is no cut-off deadline for access to the scheme, so if there is a reduction in turnover later in 2020 because of an unexpected reduction in business activity or a sudden change in business circumstances the employer may be entitled to make a claim for that future period. In this regard, it should be noted that an employer needs to have registered before the first pay date they wish to claim for. As a result, it is possible that an employer would not need to avail of the scheme for September or October 2020 but make a valid application for November 2020 thereby taking account of business turnover fluctuations over the period.
The objective of the EWSS is to maintain the link between employees and employers insofar as is possible and a number of elements are contained in the scheme that have particular benefit to the seasonal tourism sector raised by the Deputy. For example, it includes employees that were not previously eligible for the TWSS, such as seasonal workers and new hires, and applications for such workers under the EWSS may be backdated to 1 July 2020.
There are no plans at present to re-visit the core eligibility criteria for the EWSS. However, I can confirm to the Deputy that the operation of the EWSS and its effectiveness will be kept under close review over the coming months. In fact, the relevant legislation obliges me to monitor and superintend the administration of the scheme and empowers me to make certain adjustments across the whole scheme where I determine that these are necessary.
I am advised by Revenue that, as of 21 September 2020, there were 35,097 employers registered for the EWSS which is considered a strong level of participation so far and, notably, proportionately more than half of all those who availed of the Temporary Wage Subsidy Scheme (TWSS) over the whole duration of that scheme.
233. Deputy Cathal Crowe asked the Minister for Finance the status of primary medical certificates to date; and his plans to expand the remit of persons eligible to receive the assistance. [25372/20]
View answerI have been advised that a Supreme Court decision of 18th June found in favour of two appellants against the Disabled Drivers Medical Board of Appeal’s refusal to grant the individuals Primary Medical Certificates (PMC). My officials are currently examining the judgement, in conjunction with the Attorney General’s Office, and will bring forward any policy and/or legislative proposals, as necessary, for my consideration in due course.
234. Deputy Joe Carey asked the Minister for Finance the changes he plans to the tax code to incentivise investment in renewable energy projects and making land use available for such projects; and if he will make a statement on the matter. [25483/20]
View answerAs the Deputy may be aware, it is a longstanding 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.
235. Deputy Sorca Clarke asked the Minister for Finance the number of persons in counties Longford and Westmeath aged between 18 and 21, 22 and 25, 25 and 30, 30 and 35 and 35 and 40 years, respectively in receipt of the employment wage subsidy scheme in tabular form. [25646/20]
View answer245. Deputy Louise O'Reilly asked the Minister for Finance the number of workers on the employment wage subsidy scheme; and if he will make a statement on the matter. [25262/20]
View answer272. Deputy Bríd Smith asked the Minister for Finance the number of workers in receipt of the employment subsidy scheme; the number of workers that received a top-up payment from their employer; the breakdown of the levels and top- ups provided by employers; and if his attention has been drawn to the fact that employer top-ups have risen as a response to the reduction in the employment subsidies provided by the State. [25595/20]
View answerI propose to take Questions Nos. 235, 245 and 272 together.
The Employment Wage Subsidy Scheme (EWSS), which commenced on 1 September 2020 (I July for certain newly hired employees and seasonal workers), provides a flat-rate subsidy to qualifying employers based on the numbers and gross pay of eligible employees on their payroll.
The EWSS replaces the Temporary Wage Subsidy Scheme (TWSS) which enabled employees, whose employers were affected by the pandemic, to receive significant supports through (employer) payroll systems. Revenue has begun to publish weekly statistics updates on the EWSS as employers continue to complete the registration process. These statistics are available at link: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-wage-subsidy-scheme-statistics.aspx.
As shown in the publications at the above link, by 17 September 2020, over 34,300 employers had registered for EWSS. The statistics (dated 17 September) show the breakdown of the registered employers by size, sector and county.
Once the registration process is completed, employers must then file payslips with Revenue for eligible employees in respect of relevant pay periods. Until these processes are completed it is not possible to know the number of employees (nor their characteristics or locations) for which subsidies are being claimed by their employers.
As the EWSS provides payments to employers rather employees, the issue of top-ups or additional payments (to employees) does not arise. This is different to the TWSS where in excess of 80% of employees regularly received a top-up additional payment from their employers.
The payslip information for EWSS recipient employers for the period 1 September onwards will be available in October and Revenue has confirmed that it will publish this information as soon after that as is practical.
236. Deputy Cian O'Callaghan asked the Minister for Finance if his attention has been drawn to the upcoming changes in banking charges by a majority State-owned bank; if he has had discussions on these charge changes; and if he will make a statement on the matter. [24763/20]
View answerAs the Deputy is aware as Minister for Finance I have no role in the commercial decisions made by the banks, including the structure and level of pricing for their various product offerings. This applies equally to the banks 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.
The AIB Relationship Framework can be found at the following link: https://www.gov.ie/en/publication/597d15-aib-relationship-framework-agreement-june-2017/
My officials have been provided with the attached helpful guide from AIB to reducing fees and charges which can be accessed at the following link:
https://aib.ie/content/dam/aib/personal/docs/fees-and-charges/a-guide-to-fees-and-charges-for-personal-accounts.pdf
237. Deputy Richard Boyd Barrett asked the Minister for Finance the number of persons employed in live action film making as PAYE workers and self-employed in each of the years 2012 to 2019; the income earned for both categories in the period; the net income tax paid for each of those categories for each of the years; and the tax foregone in deductions, allowances and reliefs for each of the categories in each of the years in tabular form. [24800/20]
View answerI am advised by Revenue that tax records are categorised by activity using an EU standard known as NACE codes (economic activity classification). This classification system does not separately distinguish live action film making, but NACE code 5911 relates to the sector ‘motion picture, video and television programme production activities.’
The number of taxpayer units, their incomes, the tax and USC deducted, the total of allowances, deductions, reliefs and reductions applied and the total value of tax credits applied for taxpayers in NACE sector 5911 is set out in the tables below, broken down by employees and self-employed.
The tables provide data from 2012 to 2018, the latest year for which data are currently available.
PAYE Employees
|
- |
Number of Taxpayers |
Income €m |
Tax €m |
USC €m |
Total of Allowances, deductions, reliefs, reductions €m |
Estimated Tax Foregone relating to allowances, deductions, reliefs and reductions €m * |
Total value of Credits €m |
|
2018 |
5,146 |
200 |
36 |
7 |
3 |
0.9 |
16 |
|
2017 |
5,277 |
191 |
34 |
7 |
3 |
0.9 |
16 |
|
2016 |
5,589 |
199 |
35 |
8 |
3 |
0.9 |
16 |
|
2015 |
5,201 |
179 |
31 |
9 |
3 |
0.9 |
15 |
|
2014 |
5,106 |
162 |
28 |
9 |
3 |
0.9 |
14 |
|
2013 |
5,100 |
160 |
28 |
9 |
3 |
0.9 |
14 |
|
2012 |
4,572 |
158 |
28 |
9 |
2 |
0.6 |
13 |
Self-Employed Individuals
|
- |
Number of Taxpayer Units** |
Income €m |
Tax €m |
USC €m |
Total of Allowances, deductions, reliefs, reductions €m |
Estimated Tax Foregone relating to allowances, deductions, reliefs and reductions €m * |
Total value of Credits €m |
|
2018 |
646 |
23 |
3 |
0.1 |
2 |
0.6 |
2 |
|
2017 |
618 |
22 |
3 |
0.1 |
2 |
0.6 |
2 |
|
2016 |
548 |
21 |
3 |
0.1 |
2 |
0.6 |
2 |
|
2015 |
496 |
18 |
3 |
0.1 |
2 |
0.6 |
1 |
|
2014 |
477 |
16 |
2 |
0.1 |
1 |
0.3 |
1 |
|
2013 |
446 |
14 |
2 |
0.05 |
1 |
0.3 |
1 |
|
2012 |
417 |
13 |
2 |
0.04 |
1 |
0.3 |
1 |
* The estimated tax foregone is calculated using an average marginal rate of 30%. **Where a couple are jointly assessed for income tax purposes, they are counted as one taxpayer unit; the NACE sector is based on the assessable spouse.
238. Deputy Ged Nash asked the Minister for Finance his plans to relax the income tax returns and CRO deadline, respectively to ensure no business is penalised for a late submission during Covid-19; and if he will make a statement on the matter. [24811/20]
View answerI am advised that Revenue has announced a further four-week extension to the Income Tax Pay & File deadline for customers making their returns and payments through the Revenue On-Line System (ROS). The additional time, to Thursday 10 December 2020, is in recognition of the challenges being experienced by the business community and by tax practitioners arising from the COVID-19 pandemic.
The extension applies to customers who file their 2019 Form 11 Income Tax return, pay any balance due for that year and pay Preliminary Tax for 2020 through ROS.
The extended filing date is also applicable to beneficiaries who received gifts or inheritances with valuation dates in the year ended 31 August 2020 and who make a Capital Acquisitions Tax (CAT) return and the appropriate payment through ROS.
