Written Answers Nos. 90-111
90. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of uncollected tax revenue as a result of persons offsetting their private health insurance costs against tax liabilities [27804/20]
View answerI am advised by Revenue that the overall cost associated with tax relief on health insurance, up to 2018 (the latest available year), can be found under the “Medical Insurance Relief” row in the Costs of Tax Expenditures table published at link: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/costs-expenditures.aspx.
In 2018, the latest year for which data are available, €355.7 million was claimed in Medical Insurance Relief, with over 1.2 million taxpayer units availing of the relief.
91. Deputy Louise O'Reilly asked the Minister for Finance the amount the State has drawn down under the European Commission instrument named temporary support to mitigate unemployment risks in an emergency; and if he will make a statement on the matter. [27852/20]
View answerThe SURE instrument is intended primarily to support Member States with efforts to protect workers and jobs (such as short-term work schemes), and also support some health-related measures. The European Commission will borrow on financial markets to finance loans to Member States, allowing Member States benefit from the EU’s strong credit rating (AAA) and low borrowing costs.
On the 24th and 25th of August the EU Commission published draft proposals offering financial support to 16 Member States amounting to €87.4billion. These implementing decisions, granting temporary financial assistance were adopted by Council on 25 September 2020.
The Commission intends going to the market in final quarter of 2020 to start procuring the funding for the first tranche. This is expected to take a number of months and will likely be paid to Member States in instalments, meaning that it could be the early/mid part of 2021 before the full draw-down is paid to all applicants. No funding support has yet been paid to a Member State under SURE.
Ireland was not one of the first tranche of applicants. Following detailed discussion with the Commission it was determined that Ireland would be eligible to recoup the substantial majority of expenditure already accrued under the Temporary Wage Subsidy Scheme (TWSS) from SURE. The TWSS has been the main scheme implemented in Ireland to date that meets the application criteria for this European response mechanism.
A decision to make a formal application to the SURE loan scheme will be taken by Government shortly and the necessary information is being prepared at present. The Commission are aware of our intention to submit an application for funding.
92. Deputy Johnny Mythen asked the Minister for Finance if he will consider reviewing the 30% cap on the employment wage subsidy scheme (details supplied); and if he will make a statement on the matter. [28019/20]
View answerThe Employment Wage Subsidy Scheme (EWSS) is an economy-wide enterprise support that gives a flat rate subsidy to qualifying employers to preserve the link between employee and employer and support firm viability through an unprecedented enterprise environment.
The 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.
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 30 September some 37,165 employers have successfully registered for the scheme, which is considered a strong level of participation so far and, notably, over 83% of the employers availing of the TWSS when it finished at the end of August.
For 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.
93. Deputy Brendan Griffin asked the Minister for Finance if the young trained farmer stamp duty relief age limit will be increased to 40 years of age; and if he will make a statement on the matter. [27701/20]
View answerThe young trained farmers stamp duty relief, which is currently due to expire on 31 December 2021, provides a full exemption from stamp duty on transfers of farm land to certain young trained farmers.
Section 81AA of the Stamp Duty Consolidation Act 1999 (SDCA 1999) provides for the stamp duty exemption in legislation. Amongst the eligibility tests for the relief set out in that section is an age limit, whereby the transferee (the person coming into possession of the land) must be under 35 years of age on the date of execution of the deed of transfer of the land.
As well as satisfying the age requirement, to qualify for this relief the farmer must have attained a minimum agricultural education standard which is set out on a list of qualifications in Schedule 2B of the SDCA 1999. The young trained farmer, or each of them if there is more than one must retain ownership of the land for a period of 5 years from the date of execution of the instrument and during that time must devote not less than 50 per cent of his or her normal working time to farming the land. The exemption granted will be clawed back if the land is disposed of within a five-year period and is not replaced within one year of disposal. The transfer can be by gift or sale, but transfers by lease do not qualify for the stamp duty exemption. The young trained farmer must also submit a business plan to Teagasc before the execution of the deed transferring the land.
It is also important to note that the young trained farmer stamp duty relief is just one of a series of tax measures, including consanguinity stamp duty relief, designed to encourage the intergenerational transfer of farms. The primary policy objectives of the Government in agri-taxation are to support and encourage the increased mobility of farm land to a new generation of farmers with relevant qualifications. The 35 year old age limit is long established for young trained farmer stamp duty relief and has applied since 1994.
The paper on Stamp Duty prepared by my Department for the Tax Strategy Group which took place on 10 September, notes possible inconsistencies in terms of the age at which one ceases to qualify as a “young trained farmer” and my Department will further examine this issue with a view to reporting on the outcome to me in advance of Budget 2022.
94. Deputy Eoghan Murphy asked the Minister for Finance the estimated cost of the various business tax deferral schemes in place as a result of Covid-19; if the schemes will be extended beyond 2021; his views on whether the schemes act as a necessary and important de facto cash boost to businesses; and if he will make a statement on the matter. [27760/20]
View answerThe Financial Measures (Covid-19) (No. 2) Act 2020 put on a statutory footing the arrangements for the deferral or ‘warehousing’ of tax debts that Revenue had been operating on an administrative basis since the beginning of Covid-19 related restrictions in March 2020. The arrangements apply to VAT liabilities in respect of January/February 2020 to July/August 2020 inclusive and PAYE (Employer) liabilities in respect of February to August 2020 inclusive.
The legislation provides that outstanding VAT and PAYE (Employer) liabilities incurred during the period of restricted trading (known as Period 1) can be deferred for a period of 12 months after resumption of trading (known as Period 2). Rather than the normal interest rate of c. 10% per annum on such liabilities, interest on ‘warehoused’ debts is applied at 0% to the end of the ‘Period 2’ 12-month period and 3% thereafter until the liabilities are paid (known as Period 3).
Access to the ‘warehousing’ arrangements are dependent on all outstanding tax returns being filed and current taxes being paid on a timely basis once trading is resumed. The 0% interest rate available in Period 2 can be extended to a date no later than 31 December 2022 by Ministerial Order. Businesses that avail of the ‘warehousing’ scheme also qualify for a Tax Clearance Certificate if they otherwise meet the normal qualifying conditions. This allows them to avail of other essential Covid-19 related supports such as the Employment Wage Subsidy Scheme (EWSS) and the Stay and Spend Scheme.
I am advised by Revenue that there are almost 70,000 taxpayers and businesses currently availing of the ‘warehousing’ arrangements to the value of €1.8 billion (€978m VAT and €825m Employers PAYE). As I have previously stated, it is not possible to provide an estimated cost for this 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.
As a further support measure for businesses, I also introduced a reduced annual interest rate of 3% for certain tax debts as part of the July 2020 Jobs Stimulus Package. This rate represents a significant reduction from the standard 8% and 10% rates that normally apply to such liabilities and is applicable across all tax-heads and outstanding debts that cannot be ‘warehoused’, for example older liabilities and tax debts not associated with Covid-19. The interest rate reduction is a key incentive to businesses to bring their tax affairs into order, be tax cleared, and thereby become eligible for the other Covid-19 related supports that are available, including the EWSS and the Stay and Spend Scheme.
To avail of the reduced 3% rate, businesses are required to agree a payment arrangement with Revenue by 31 October 2020 (extended from 30 September 2020). Revenue has advised me that over €46m of non-Covid-19 related tax debt is now covered by phased payments incorporating the reduced 3% rate.
95. Deputy Catherine Murphy asked the Minister for Finance the instructions and correspondence he issued to the Revenue Commissioners regarding the way in which the treatment of tax liabilities by Revenue for recipients of the wage subsidy scheme and the pandemic unemployment payment will be handled as per his statement of 25 September 2020; and the reason for issuing the instructions. [27830/20]
View answerAs the Deputy will be aware, on 25 September in a public announcement Revenue set out how any tax liability arising on the Temporary Wage Subsidy Scheme (TWSS) and the Pandemic Unemployment Payment (PUP) will be dealt with. Revenue officials sent a copy of its press release to my Department for information prior to publication. There was no instruction from me or my officials to Revenue in relation to this matter.
While the expected tax liability should be modest in most cases, the position as set out by Revenue is very welcome and is a further demonstration of how we will continue to work to minimise financial hardship to the greatest extent possible on taxpayers challenged by COVID-19.
While most income is liable to income tax and the Universal Social Charge (USC) and is deducted in real-time as and when the person is paid, the TWSS and PUP payments were not taxed in real-time and are instead liable to income tax and USC at the end of this year.
Revenue will make a Preliminary End of Year Statement available to all employees in January 2021, including those who were in receipt of the TWSS or PUP. The Preliminary End of Year Statement includes information relating to an employee’s income received, including pensions and income from the Department of Social Protection, Community and Rural Development, and the Islands, as well as their tax credit entitlements. For the tax year 2020, the Statement will also include information on the amounts of TWSS/PUP payments, if any, received by each employee. In addition, the Statement will provide employees with a preliminary calculation of the income tax and USC position for 2020 and will indicate whether their tax position is balanced, underpaid or overpaid for the year.
Upon viewing the Preliminary End of Year Statement through myAccount, which is Revenue’s secure online facility for individual taxpayer services, employees will have an opportunity to update their personal record, declare any additional income and claim any additional tax credits due, for example qualifying health expenses, to arrive at their final liability for 2020.
Where a liability is finalised, individuals may opt to fully or partially pay any income tax and USC liability through the Payments/Repayments facility in myAccount. Where individuals do not opt to fully or partially pay, Revenue will collect the liability by reducing their tax credits over 4 years, interest free. The reduction of tax credits will start in January 2022.
96. Deputy Darren O'Rourke asked the Minister for Finance the taxes levied on aviation fuel; and if he will make a statement on the matter. [27850/20]
View answerIreland’s excise duty treatment of fuel used for air navigation is based on European law as set out in Directive 2003/96/EC on the taxation of energy products and electricity, commonly known as the Energy Tax Directive. Under this Directive, Member States are obliged to exempt certain fuels used for commercial aviation purposes from excise duty. The scope of this exemption must include jet fuel (which is the most commonly used heavy oil in air navigation) and must encompass such fuel used for intra-Community and international air transport purposes.
A Member State may waive this exemption where it has entered into a bilateral agreement with another Member State to tax fuel for intra-community flights. With regard to fuel for international transport, the scope for a Member State to take a unilateral approach to taxation is limited by international law and a range of bilateral and multilateral agreements that operate under 1944 Convention on International Civil Aviation (known as the Chicago Convention).
VAT is charged on domestic and private usage of jet fuel at the reduced rate of 13.5%, while VAT is charged at the standard rate of 23% on aviation gasoline used for the same purpose. The supply of aviation fuel for international air travel is zero rated and airline tickets are exempt from VAT throughout the EU.
Finally, I am informed by Revenue that the breakdown of taxes levied on the different types of aviation fuel as provided for under the Finance Act 1999 and Energy Tax Directive are shown in the table below.
|
Aviation Fuel/Use |
Energy Tax Directive |
Finance Act 1999 |
|
Light oil (aviation gasoline) used for domestic commercial aviation |
No mandatory tax exemption, Member States may opt to exempt or partially exempt |
Partial relief from MOT, effective rate of €369.42 per 1,000 litres (section 97B Finance Act 1999) |
|
Light oil (aviation gasoline) used for intra-Community/international commercial aviation |
No mandatory tax exemption, Member States may opt to exempt or partially exempt |
Partial relief from MOT, effective rate of €369.42 per 1,000 litres (section 97B Finance Act 1999) |
|
Light oil (aviation gasoline) used for private pleasure flying |
Mandatory taxation |
Full MOT rate of €601.69 per 1,000 litres (section 96 Finance Act 1999) |
|
Heavy oil (jet fuel) used for domestic commercial aviation |
No mandatory tax exemption, Member States may opt to exempt or partially exempt |
Full exemption (section 100(2)(b) Finance Act 1999) |
|
Heavy oil (jet fuel) used for used for intra-Community/international commercial aviation |
Mandatory tax exemption, except where bilateral arrangement entered into with another Member State |
Full exemption (section 100(2)(b) Finance Act 1999) |
|
Heavy oil (jet fuel) used for private pleasure flying |
Mandatory taxation |
Full MOT rate of €494.90 per 1,000 litres (section 100(2)(b) Finance Act 1999) |
97. Deputy Marian Harkin asked the Minister for Finance his plans to increase carbon tax on solid fuel products in Budget 2021; and if he will make a statement on the matter. [27949/20]
View answerAs the Deputy 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.
98. Deputy Johnny Mythen asked the Minister for Finance if he will consider introducing an increase in tax relief on intracytoplasmic sperm treatment costs for young couples that at present face costs of anything between €15,000 and €20,000 for this form of treatment. [27973/20]
View answerI am advised by Revenue that section 469 of the Taxes Consolidation Act 1997 provides for tax relief in respect of qualifying health expenses. Only “health expenses” incurred in the provision of “health care”, which has been carried out, or advised, by a “practitioner”, qualify for tax relief.
Health expenses are defined as “expenses in respect of the provision of health care” and includes:
(a) the services of a practitioner;
(b) diagnostic procedures carried out on the advice of a practitioner; and
(c) maintenance or treatment necessarily incurred in connection with the services or procedures referred to in paragraph (a) or (b).
Health care is defined as the prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability, and includes care received by a woman in respect of a pregnancy.
A practitioner is defined as a person who is either:
(a) registered in the register established under section 43 of the Medical Practitioners Act 2007;
(b) registered in the register established under section 26 of the Dentists Act 1985; or
(c) in relation to health care provided outside the State, entitled under the laws of the country in which the care is provided to practice medicine or dentistry there.
Therefore, fertility treatment such as intracytoplasmic sperm treatment may qualify if the criteria referred to above are met.
Tax relief is granted at the standard rate of income tax (currently 20%) in respect of all health expenses, with the exception of qualifying expenditure on nursing home expenses (which are subject to relief at the individual’s marginal rate of tax).
Comprehensive guidance material in relation to income tax relief for health expenses is available on Revenue’s website, available here and also in Tax and Duty Manual Part 15-01-12.
I have no plans at present to alter the abovementioned reliefs.
99. Deputy Joe O'Brien asked the Minister for Finance if the Revenue Commissioners will be instructed to conduct an audit and review of the operation of the temporary wage subsidy and employment wage subsidy schemes in a company (details supplied) in view of reports from employees that they have been in receipt of pay below the minimum mandated by the schemes; and if he will make a statement on the matter. [27979/20]
View answerThe 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 the second quarter of the year while the strictest public health measures were in place to stop the spread of the COVID-19 virus.
Under the TWSS, the income support was paid via the employer so as to maintain the link between the employee and employer insofar as was possible and the amounts were refunded to the employer by Revenue who administered the scheme on behalf of the State.
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 individual taxpayers including the company in question.
I would like to assure the Deputy that, by design, it is not possible for an employer to claim more of a subsidy under the TWSS than was paid to their employees. This is because the system used to make the payments was built upon employer payroll returns to Revenue under the PAYE system and the claim for the subsidy is based on the amount paid to the workers as recorded on the payroll return. It is not possible that an employer could have withheld a subsidy payment from their workers and the legislation required the employer to include the subsidy as part of the employees’ wages and identify the amount of the subsidy paid to the employee on the employees’ payslip.
Employers were required to download information provided by Revenue based on their January and February payroll and use it to calculate the wage subsidy for an employee. There was no obligation on an employer to claim the maximum amount of subsidy for an individual employee. It is therefore possible that the amount of subsidy that was claimed and recorded was less than the worker expected, based on the publicised maximum limits of the TWSS.
Section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020, the employer was expected to make best efforts to maintain the employee’s net income, as reflected in the average net weekly payment for January and February 2020, for the duration of the scheme.
However, the individual worker’s entitlements and rights in an employment context, what wages an employer may have been legally obliged to pay employees in respect of hours worked and the employer’s capacity to pay wages to employees in light of the impact of the Covid-19 pandemic had on the employer’s business are all matters that are outside the remit of the TWSS.
The legislation also placed the administration of the TWSS under the care and management of Revenue. In carrying out this important role, Revenue is conducting a programme of compliance checks on all employers who availed of the scheme to confirm that they met the eligibility criteria, and crucially that employees received the correct amount of subsidy due to them.
I am advised by Revenue that it is in the process of carrying out compliance checks on the 66,000 employers who participated in the TWSS scheme to ensure that they were properly eligible to receive these monies and that the supports were properly paid out to qualifying employees. I understand that, to date, checks have been initiated in respect of some 35% of TWSS employers representing some 67% of employments supported by the scheme. These checks will continue for the next number of months. Revenue advise that their enquiries to date have indicated high levels of compliance by employers with the requirements of the scheme.
I am further advised that Revenue intends to conduct a reconciliation exercise for employers who participated in the scheme to compare the refunds paid to an employer against the amount of subsidy payable to each employee per pay date under the conditions of the scheme. The aim of this exercise is to determine the amount of TWSS, if any that an employer may owe back to Revenue.
I understand that an employer may be required to repay amounts of TWSS where the employer has not paid the subsidy amount to the specified employee or where the employer was not entitled to receive the subsidy in the first place as it did not meet the qualifying criteria. In addition, where an employee does not meet the eligible employee requirement and received subsidy amounts, the employer will also be required to refund these amounts to Revenue.
The Employment Wage Subsidy Scheme (EWSS) replaced the TWSS from 1 September. To qualify for EWSS, an employer must have tax clearance. An employer will also be required to demonstrate to the satisfaction of Revenue that its business will experience a 30% reduction in turnover or in customer orders in the period between 1 July and 31 December 2020 and that Covid-19 is the cause of this disruption. An employer will have a monthly ongoing obligation to review its eligibility for the scheme.
To ensure that the EWSS scheme is operated as intended by employers, Revenue will undertake an assurance check programme at a later date.
I wish to emphasise that the information outlined above relates to the general operation of TWSS and EWSS and does not relate to any one employer or a small group of employers within any one industry.
100. Deputy Michael Healy-Rae asked the Minister for Finance if the case of a person (details supplied) will be investigated; and if he will make a statement on the matter. [28000/20]
View answerI am advised by Revenue that the issue to which the Deputy is referring has been resolved.
Following direct discussions between the person in question and Revenue, tax clearance certification issued through the electronic tax clearance system. A Tax Clearance Access Number (TCAN) has also issued to the person. This can be provided to any third party who wishes to verify his tax clearance status.
101. Deputy Pearse Doherty asked the Minister for Finance the expected deficit in 2021 in nominal and percentage GDP terms; and if he will make a statement on the matter. [28039/20]
View answerAs the Deputy will be aware, the unprecedented economic situation of the last six months has meant that medium-term economic and fiscal forecasts are subject to an exceptional level of uncertainty.
My Department’s most recent official forecasts, published in the Stability Programme Update, were, accordingly, produced on a short-term basis, as per guidance from the European Commission. At that time, a general government deficit of €14 billion, or 4 per cent of GDP was estimated for 2021. While the situation remains highly uncertain, the Department of Finance is currently undertaking work on a full set of updated economic and fiscal forecasts as part of preparations for Budget 2021. It is anticipated a general government deficit, based on a no-policy-change, is estimated to be in the order of 4.5 to 5.5 per cent of GDP, which equates in nominal terms to a deficit of €15 to €19billion.
The continuing uncertainty means that my officials will take into consideration all possible data points and relevant information, such as the recently published Q2 National Accounts data and the September Exchequer returns, to ensure that the forecasts are as accurate as possible. Projections produced earlier would be based on less information and, as a result, would likely be less accurate.
The updated set of economic and fiscal forecasts, which will take into account the fiscal impact of the July stimulus package, taxation receipts to-date and any decisions made in the context of the Budget will be published next month.
102. Deputy Pearse Doherty asked the Minister for Finance if an increase in the carbon tax in 2021 is already included within the base for 2021; if so, if it will be a discretionary tax measure; and if no further increase in the carbon tax in 2021 will have a budgetary cost in 2021. [28040/20]
View answerThe base for any year includes measures which have been implemented in previous years. It does not include assumptions on any additional measures which may be the subject of Budget decisions in the current year. As such, any potential revenue arising from changes to the rate of carbon tax in Budget 2021 has not been included in the base.
103. Deputy Bernard J. Durkan asked the Minister for Finance if and when Covid-19 support payments are likely to be made in the case of employee directors; and if he will make a statement on the matter. [28062/20]
View answerThe Employment Wage Subsidy Scheme (EWSS) was legislated for in the Financial Provisions (Covid-19) (No. 2) Act 2020. The EWSS provides a flat-rate subsidy to qualifying employers, based on the number of qualifying employees on the payroll. I am advised by Revenue that by 30 September, 37,165 employers had successfully registered for the scheme. Furthermore, payments of EWSS claims, in respect of employees and proprietary directors, for the month of September, will be made in the middle of this month.
Executive directors are directors of a company who are involved in the day to day management of the company. Executive directors are generally treated the same as ordinary employees provided, they are not also a proprietary director. Therefore, subject to the company meeting the eligibility conditions, the employer can claim a subsidy in respect of executive directors similar to employees.
Proprietary directors are directors who can control, either directly or indirectly, more than 15% of the share capital of a company. Under the EWSS legislation as enacted, proprietary directors are not qualifying employees for the purposes of the scheme. However, as I announced at the end of July this position has been revisited and the EWSS can be claimed by an eligible employer in respect of proprietary directors from 1 September 2020, where they meet the objective of the scheme of retaining ordinary employees on the payroll.
Following the review of the matter undertaken by my Department and the Revenue Commissioners, it has been agreed that the only additional qualifying criteria that will apply in the case of proprietary directors as qualifying employees is that the proprietary director has to have been paid wages which were reported to Revenue on the payroll of the eligible employer at any stage between 1 July 2019 and 30 June 2020. Further, it has also been agreed that where a person is a proprietary director of two or more eligible companies, a claim for EWSS can only be submitted in respect of a single company only.
The amending legislation necessary to give a statutory footing to the above will be included in the Finance Bill later this year.
In the meantime, the above will be implemented by Revenue as confirmed in both a press release that was issued on 31 August (see https://www.revenue.ie/en/corporate/press-office/press-releases/2020/pr-310820-proprietary-directors-ewss-1-September.aspx) and the updated Guidance (see https://www.revenue.ie/en/corporate/communications/documents/ewss-guidelines.pdf).
104. Deputy Sorca Clarke asked the Minister for Public Expenditure and Reform the dates since 2016 the Shannon flood risk State agency co-ordination working group has met, either in person or virtually. [27738/20]
View answer107. Deputy Sorca Clarke asked the Minister for Public Expenditure and Reform the amount of funding provided to Waterways Ireland for maintenance work on the River Shannon in 2017, 2018 and 2019 in tabular form. [27727/20]
View answerI propose to take Questions Nos. 104 and 107 together.
The Shannon Flood Risk State Agency Co-ordination Working Group was established in early 2016 by the Government to support existing plans in place and planned to address flooding and to enhance the ongoing co-operation of all state agencies involved with the River Shannon. The Group was established, at that time, following severe flooding arising from exceptional weather conditions between December, 2015 to January, 2016.
The Shannon Group met on five occasions during its first year of establishment in 2016. Since that time, the Group has met bi-annually.
The date of each meeting is set out beneath.
2016: 1st February, 14th March, 12th July, 18th October, 2nd December.
2017: 21st March, 23rd October.
2018: 18th May, 12th October.
2019: 26th March, 31st October.
2020: 30th April.
The next meeting of the Group is scheduled to take place on 22nd October, 2020.
In 2017, the Group established a Sub-committee on Work Programme and Measures. The Sub-committee typically meets between each meeting of the main Group and additional meetings are held to progress work measures as necessary.
The Group publishes an Annual Work Programme that demonstrates the extensive range of activities and co-ordination by all State Agencies underway to jointly and proactively address flood risk along the Shannon. These Work Programmes are available at www.opw.ie.
The Group also agreed to targeted maintenance activities at various locations along the River Shannon. Following receipt of consent from the National Parks and Wildlife Service, work involving tree cutting and the removal of silt and emergent vegetation was undertaken by Waterways Ireland at five locations during the appropriate seasonal windows. Funding was provided by OPW to Waterways Ireland to carry out this maintenance work. The amount of funding provided between 2017 and 2019 is as follows:
- 2017: €48,853
- 2018: Nil
- 2019: €59,578
In October 2019, the Group agreed to a €7 million strategic programme of maintenance works and the removal of constrictions at the Callows region to improve the conveyancing of the River Shannon. The decision to undertake these works was noted by the Government in December 2019. Public consultation will be required and progression will be subject to full environmental assessment and planning permission. Waterways Ireland has advised that it has commenced work on advancing the various interventions for these works with implementation expected to commence in 2021.
105. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the projected additional expenditure for 2021 in comparison with 2020 disaggregated by precommitted, Covid-19-related and Brexit-related expenditure; and if he will make a statement on the matter. [28038/20]
View answerAs set out in my response Parliamentary Questions Nos. 107 and 128, the overall Budgetary Strategy for 2021 will focus on prioritising crisis management measures to address the challenges posed by Covid-19 and Brexit while preserving and maintaining existing levels of service within core expenditure programmes.
Ensuring the provision of the necessary funding to support our citizens and key public services over the next phase of the COVID-19 pandemic will be the key priority in Budget 2021. In light of this, work is ongoing in assessing the impact of Covid-19 costs in 2021. Consequently, there is a range of potential expenditure requirements that need to be worked through in detail. At this stage, on a no policy change basis, and assuming an improved position in relation to employment next year based on the latest macroeconomic projections, it is estimated that there could be a cost of approximately €9 billion in relation to Covid-19 expenditure reflecting:
- the carryover costs of the July stimulus programme;
- significant expenditure on automatic stabilisers including job-seekers payments and related supports;
- ongoing costs in health to deal with Covid-19;
- the carryover costs relating to both the Roadmap for Reopening Schools, and to the package of supports to enable further and higher education students to return to college; and
- the ongoing requirement to fund public transport while employees continue to be encouraged to work from home.
Further details will be set out in detail in the 2021 Expenditure Report. It should be noted that these pressures will be dealt with separately from core expenditure increases and given their scale, will form a significant part of the overall budgetary package.
In relation to core expenditure programmes, €70.4 billion in gross voted expenditure was allocated to Departments in the Revised Estimates for Public Services (REV) 2020 published in December 2019. At this stage it is planned that the Budget Estimates for 2021 will include an increase of approximately €3 billion in this core expenditure, comprising:
- €2 billion in current expenditure
- €1 billion in capital expenditure;
Of the €2 billion in current expenditure it is estimated that there are pre-commitments of €1.1 billion to be funded in relation to demographics, and to meet the carryover costs of prior year measures and of public service pay deals. Work is also ongoing in finalising these costs, and on the emerging core expenditure position for this year for this year. Outside of these expenditure pressures, it is estimated that there is an amount of €0.9 billion available to meet other day to day pressures on existing services across all areas of Government.
In relation to Capital expenditure, we will also ensure that the increase in capital investment set out in the National Development Plan is implemented in order to support the recovery in the economy. This would see core gross voted capital expenditure of almost €9.2 billion next year, an increase of almost €1 billion on the gross voted expenditure amount set out for this year in REV 2020.
Finally, Budget 2021 will also be prepared on the assumption that the trading relationship between the UK and EU will be on WTO terms in 2021. This will necessitate additional supports for the most affected sectors of the Irish economy next year. The costs associated with these supports will form an essential part of budgetary discussions and details of these costs will be set out in the 2021 Expenditure Report on Budget day.
106. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the number of employees across the entire public sector with accumulated pensions in excess of €1.2 million and €1.5 million, respectively; and if he will make a statement on the matter. [27700/20]
View answerThe authorities responsible for the administration of the large number of pension schemes operating in the various sectors of the Irish public service are, in general, the relevant employers and Ministers in those sectors.
It would be a matter for those sectoral authorities, including relevant Ministers, to supply such information as may be available in respect of the pension entitlements of members of those individual pension schemes.
I and my Department are responsible for the civil service pension schemes, which cover personnel in established and unestablished civil service and State Industrial posts.
Civil servants are members of defined benefit pension schemes and there is no readily available valuation of an employees pension on an individual basis. The value attributable to the pension scheme member is based on a number of factors, including age at retirement, life expectancy, pay grade and pensionable service.
However, the National Shared Service Office does consider whether a member's pension obligations, valued in line with Revenue capitalisation factors, exceed the Standard Fund Threshold at retirement.
It is worth noting that on 19 December 2017, this Department published a report of the actuarial review of the State's accrued liability in respect of Public Service Occupational Pensions that was carried out by my Department.
In summary, the actuarial review found that the value of the State’s accrued liability in respect of retirement benefits for current and former public service employees is estimated to be €114.5bn as at 31 December 2015. A revised estimate based on 31 December 2018 will be published by year end 2020.
While this is a large figure, it is important to bear in mind that the accrued liability will fall to be paid over the next 70 years or so – not in any single year. It is also important to stress that we have taken a number of significant steps to improve the long-term sustainability of public service pensions in recent times.
For example, the Single Public Service Pension Scheme introduced from 2013 will, in time, reduce liabilities by around 35% from what would otherwise have been the case.
Additionally, under the Public Service Pay and Pensions Act 2017, the introduction of an Additional Superannuation Contribution by public servants. This increased employee pension contributions from over €700m per annum to €1.25bn in 2019, thus providing substantial additional ongoing funding support towards the cost of public service pensions from those that benefit from such pensions.
Furthermore, the compulsory retirement age has increased from 65 to 70 for public servants recruited before 1 April 2004. This will also assist in reducing the time period over which pension payments will be paid to those public service employees who opt to remain in work longer.
The full report is published on my Department's website at the following link.
http://www.per.gov.ie/en/minister-donohoe-publishes-actuarial-review-of-public-service-pension-liabilities/
108. Deputy Sorca Clarke asked the Minister for Public Expenditure and Reform the number of applications received via CFRAM for river management works in 2017, 2018, 2019 and to date in 2020, by local authority in tabular form. [27729/20]
View answer109. Deputy Sorca Clarke asked the Minister for Public Expenditure and Reform the number of applications approved via CFRAM for river management; and the value of the awarded amounts by local authority in tabular form. [27730/20]
View answer110. Deputy Sorca Clarke asked the Minister for Public Expenditure and Reform the number of applications received for flood defences in 2017 to 2019 and to date in 2020 by local authority in tabular form. [27731/20]
View answer111. Deputy Sorca Clarke asked the Minister for Public Expenditure and Reform the number of applications approved for flood defences from 2017 to 2019 and to date in 2020; and the value of the awarded amounts by local authority in tabular form. [27732/20]
View answer114. Deputy Sorca Clarke asked the Minister for Public Expenditure and Reform the number of flood defence works completed from 2017 to 2019 and to date in 2020 by local authority in tabular form. [27736/20]
View answerI propose to take Questions Nos. 108 to 111, inclusive, and 114 together.
Local flooding issues are a matter, in the first instance, for each Local Authority to investigate and address. Local authorities may carry out flood mitigation works using its own resources or apply under the OPW’s Minor Flood Mitigation Works and Coastal Protection Scheme, which makes funds available to Local Authorities to undertake minor flood mitigation works or studies to address localised flooding problems within their administrative areas. The eligibility criteria of this scheme, including a requirement that any measures are cost beneficial, are published on the OPW website www.gov.ie/opw It is open to the Council to submit a funding application for flood mitigation works under the Scheme. Any application received will be considered in accordance with the scheme's eligibility criteria and the overall availability of resources for flood risk management.
Please see below in tabular form by local authority the number of projects approved, total of funding approved, number of completed projects and number of applications submitted for the years 2017 to 2020.
