Tuesday, 3 Nov 2020

Written Answers Nos. 379-396

Covid-19 Pandemic Supports

Questions (379)

Cathal Crowe

Question:

379. Deputy Cathal Crowe asked the Minister for Finance if the six-month moratorium on business loans which has now expired will be extended in view of the stricter Covid-19 restrictions. [32299/20]

Written answers

Minister for Finance

The payment breaks coordinated by the Banking and Payments Federation of Ireland (BPFI) and introduced by its Members last March was a welcome initiative that allowed important and necessary cash flow relief to be quickly and efficiently provided to borrowers affected by Covid-19, including SMEs. As the Deputy is aware, the original 3 month payment break was extended by another 3 months for borrowers that requested it.

As these expire, many borrowers are returning to repayment but many other borrowers continue to be impacted by the economic consequences of Covid-19, and they may not be in a position to resume their loan repayment commitments when their payment break ends. I am fully aware of the stress and uncertainty that these borrowers are still facing, and they will continue to need assistance and support from their lenders. This point was made very clear to the CEOs of the country’s retail banks, and to the BPFI, by the Tánaiste, the Minister for Public Expenditure and Reform and myself when we met them at the end of September. It was also indicated that it is particularly vital that lenders work with their customers to ensure that suitable arrangements are put in place to assist their customers who are still experiencing difficulty. These arrangement could include additional flexibility, and this could be short term such as additional periods without payments or interest-only repayments, or if appropriate more long term arrangements. Each individual’s position is different and that’s why a case-by-case approach is now the best approach as some sectors of the economy are more impacted than others.

The Central Bank expects all lenders to develop strategies and operational capability to continue to support borrowers who cannot return to full capital and interest repayments after the end of the payment break. This will include offering forbearance as required and restructuring of loans in the event of long-term affordability issues.

With regard to loans to SMEs, regulated financial service providers are required to comply with the Central Bank (Supervision and Enforcement Act 2013 (Section 48) (Lending to Small and Medium-Sized Enterprises) Regulations 2015, which are generally referred to as the SME Regulations. These set out the required treatment of SMEs by regulated entities in relation to various aspects of business lending. This includes detailed provisions around the credit application process, requirements regarding security or collateral, credit refusals and withdrawals, handling complaints, managing arrears and having in place policies for engaging with SMEs in financial difficulty.

The SME Regulations also specify that borrowers must be informed about a regulated entity’s internal appeal process in respect of a decision on whether to grant an alternative arrangement. The SME Regulations also state that borrowers with participating lenders should be informed of the Credit Review Office where the participating lender’s decision in relation to alternative arrangements are subject to review by the Credit Review Office. The Credit Review Office (https://www.creditreview.ie) was established to assist those SMEs and farm borrowers that have had credit applications of up to €3 million refused or have an existing credit facility withdrawn or amended by the participating bank or in relation to alternative arrangements for borrowers in difficulty. SMEs can apply to Credit Review after exhausting the internal appeals process in the relevant participating institution, which are currently AIB, BOI, Ulster Bank and Permanent TSB.

I would urge borrowers facing difficulties due to COVID-19 to contact their lenders as soon as possible to make alternative arrangements that will assist them to come through this difficult period.

Covid-19 Pandemic Supports

Questions (380, 390, 391, 392, 394, 395, 406, 408, 428, 432, 433, 445, 447, 449)

Duncan Smith

Question:

380. Deputy Duncan Smith asked the Minister for Finance the reason Irish travel agents licensed by the Commission for Aviation Regulation are excluded from qualifying for the CRSS in view of the fact they have been trading in excess of 80% down since March 2020 and are likely to be a minimum 80% down until travel restarts; and if he will make a statement on the matter. [32318/20]

Brendan Griffin

Question:

390. Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details supplied); and if he will make a statement on the matter. [33489/20]

Brendan Griffin

Question:

391. Deputy Brendan Griffin asked the Minister for Finance his views on a matter (details supplied) regarding CRSS and coach tourism and private bus operators; and if he will make a statement on the matter. [33491/20]

Jackie Cahill

Question:

392. Deputy Jackie Cahill asked the Minister for Finance if he will include private coach tourism operators in the Covid-19 restrictions support scheme in view of the fact that their businesses are currently closed due to Covid-19 restrictions; and if he will make a statement on the matter. [33730/20]

Darren O'Rourke

Question:

394. Deputy Darren O'Rourke asked the Minister for Finance if he will make the CRSS scheme available to private bus operators; if he has had discussions with the Department of Enterprise, Trade and Employment in relation to same; and if he will make a statement on the matter. [33768/20]

Steven Matthews

Question:

395. Deputy Steven Matthews asked the Minister for Finance if consideration has been given with regard to including the coach tourism and private bus sector in the CRSS scheme to reflect their inability to operate in level 5 restrictions. [33882/20]

Richard Boyd Barrett

Question:

406. Deputy Richard Boyd Barrett asked the Minister for Finance the way in which specialists SMEs in the live entertainment and events sector, including audio and lighting suppliers, staging companies, specialist event health and safety consultants, specialist security companies, fencing, sanitation, site services, power suppliers, marketing companies and other critical suppliers gain access to critical supports from his Department, that is, the CRSS, if they do not have public-facing companies; and if he will make a statement on the matter. [32542/20]

Bernard Durkan

Question:

408. Deputy Bernard J. Durkan asked the Minister for Finance if a person (details supplied) qualified for assistance under the CRSS scheme; and if he will make a statement on the matter. [32558/20]

Paul Murphy

Question:

428. Deputy Paul Murphy asked the Minister for Finance if viable coach and tourism businesses can access the CRSS scheme to keep workers employed and bring them back to work when the Covid-19 restrictions are lifted; and if he will make a statement on the matter. [33143/20]

Brendan Griffin

Question:

432. Deputy Brendan Griffin asked the Minister for Finance his views on the CRSS for a company (details supplied) in County Kerry; and if he will make a statement on the matter. [33197/20]

Cian O'Callaghan

Question:

433. Deputy Cian O'Callaghan asked the Minister for Finance the reason for excluding private coach operators from the Covid restrictions support scheme; and if he will make a statement on the matter. [33214/20]

Martin Browne

Question:

445. Deputy Martin Browne asked the Minister for Finance if bus companies will be included in the Covid support scheme to ensure the viability of the sector. [33704/20]

Michael Healy-Rae

Question:

447. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding the CRSS scheme; and if he will make a statement on the matter. [33741/20]

Brendan Griffin

Question:

449. Deputy Brendan Griffin asked the Minister for Finance if he will address a matter in relation to the Covid restriction support scheme (details supplied); and if he will make a statement on the matter. [33776/20]

Written answers

Minister for Finance

I propose to take Questions Nos. 380, 390 to 392, inclusive, 394, 395, 406, 408, 428, 432, 433, 445, 447 and 449 together.

The details of the Covid Restrictions Support Scheme (CRSS) are set out in the Finance Bill 2020 and guidelines on the operation of the scheme are available on the Revenue website

(https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf). The CRSS is a targeted support for businesses significantly impacted by restrictions introduced by the Government under public health regulations to combat the effects of the Covid-19 pandemic.

The support will be available to companies and self-employed individuals who carry on a trade or trading activities from a business premises located in a region subject to restrictions, introduced in line with the Living with Covid-19 Plan, with the result that the business is required to prohibit or considerably restrict customers from accessing their business premises. Generally, this refers to Covid restrictions at Level 3, 4 or 5 of the Government’s Plan for Living with Covid-19 but certain businesses may qualify for the support where lower levels of restrictions are in operation.

Where, as a result of the restrictions, a company or a self-employed individual is either forced to temporarily close their business, or their business is required to operate at significantly reduced levels, they will qualify for support under the scheme. Certain other conditions will apply, including that the person has a tax clearance certificate.

Qualifying businesses will be able to make a claim to Revenue under the CRSS for a cash payment, which will be known as an “Advance Credit for Trading Expenses” (“ACTE”). The ACTE will provide an immediate cash support to businesses. The amount of the ACTE will be based on an amount equal to 10% of the average weekly turnover of the business in 2019 (or in the case of new businesses, the average weekly turnover in 2020) up to €20,000 and 5% thereafter, subject to a maximum weekly payment of €5,000. This valuable upfront cash payment will enable eligible businesses to meet costs associated with their business premises, such as rent, insurance and utilities, at a time when, because of the specific terms of the restrictions announced by the Government, they cannot, for a period of time, provide goods or services to their customers or can only do so to a limited extent.

All eligible businesses can claim the support irrespective of their turnover levels, but the amount of the ACTE cannot exceed the lower of the amount based on 10%/5% of the relevant weekly turnover or €5,000 per week.

Where businesses ordinarily operate from a business premises (generally a building) located in a region for which restrictions are in operation, they may qualify under the scheme provided they meet the eligibility criteria, including the requirement that customers are either prohibited, or significantly restricted, from accessing their business premises to purchase goods or services due to the specific terms of the Covid restrictions announced by Government.

Where a business does not ordinarily operate from a fixed business premises located in a region that is subject to restrictions, such as a musician who does not perform from a fixed business premises or a coach or bus operator whose business is ordinarily operated from mobile vehicles, that business will not meet the eligibility criteria. A business that does ordinarily operate from a music or entertainment venue (for example, a company that operates a theatre) or a business in the tourism sector carrying on a trade consisting of, for example, the operation of a gallery or other cultural attraction, located in a region subject to restrictions, and who meets the eligibility criteria, will however be able to claim support under CRSS.

The scheme will not apply to a business in the events industry or in other sectors, which does not ordinarily operate from a fixed business premises located in a region subject to the restrictions, but rather supplies goods or services to a business that does qualify for support under CRSS because, under the Covid restrictions, that other business is required to temporarily close or significantly reduce its activity. Each business must satisfy the eligibility criteria in their own right.

It is not sufficient that the trade of a business, such as a travel agency, has been impacted because of a reduction in customer demand as a consequence of Covid-19, or that the business supplies goods or services to another business that qualifies for the support because, under the Covid restrictions, that other business is required to temporarily close, or significantly reduce, its activity. However, where customers of such a business are prohibited or significantly restricted from accessing the business premises in which the business is ordinarily carried on, as may be the case with travel agents under level 5 of the Plan for Living with Covid-19, the business may qualify for the CRSS.

Companies and self-employed workers who do not qualify under this scheme may be entitled to support under various measures put in place by Government, including the range of measures announced as part of Budget 2021 to support live entertainment in 2021, and existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS). They may also be eligible to warehouse VAT and PAYE (Employer) debts and also excess payments received by employers under the Temporary Wage Subsidy Scheme, and the balance of Income Tax for 2019 and Preliminary Tax for 2020 for self-assessed taxpayers if applicable.

Businesses may also be able to benefit from the Live Performance Support Scheme details of which are available at https://www.gov.ie/en/service/08aff-live-performance-support-scheme/. Coach operators may also be able to benefit from the Coach Tourism Business Continuity Scheme.

Carbon Tax Yield

Questions (381)

Eoin Ó Broin

Question:

381. Deputy Eoin Ó Broin asked the Minister for Finance the distributional impact of increases in the carbon tax from budgets prior to 2021 had on different income groups; and the compensation measures taken to protect the most vulnerable. [32443/20]

Written answers

Minister for Finance

The Carbon Tax was introduced in Ireland in 2009 on a phased basis applying initially to auto fuels, subsequently to other liquid fuels in 2010 and to solid fuels in 2013. The carbon tax was first implemented at a rate of €15 per tonne of Carbon Dioxide (CO2) emission, the rate increased to €20 in Budget 2012 and remained at that rate until it was increased to €26 per tonne in Budget 2020. In line with the Programme for Government commitment, Budget 2021 increased the rate to €33.50 per tonne of CO2 applying immediately to auto fuels with a delayed implementation date of 1st May 2021 on all other fuels.

Several studies have examined the distributional impacts of carbon taxation In Ireland. In particular in relation to the most recent tax rate increases, research conducted by the Economic and Social Research Institute of Ireland (ESRI) between 2018 and 2020 examined the distributional impacts of potential carbon tax rate increases as well as revenue recycling and compensation options. These research papers are published and available to access on the website of the ESRI (www.esri.ie).

In recognition of the fact that this research points to carbon tax increases disproportionately impacting low income households, the Government has taken steps to minimise the impact of the increase on heating costs. I have delayed the increase on home heating fuels until 1st May in each year following the Budget announcement. Both Budget 2020 and Budget 2021 also committed to ringfencing of all additional revenue arising from the increase for expenditure measures related to fuel poverty prevention, the Just Transition and investment in a low carbon economy. Full details of this expenditure are available on the Budget website of the relevant year (www.budget.gov.ie).

Retail Sector

Questions (382)

Seán Canney

Question:

382. Deputy Seán Canney asked the Minister for Finance his views on the proposed introduction of a minimum spend restriction for all tourists of €175 under the retail export scheme, the highest possible level permitted; if his attention has been drawn to the fact that Ireland is alone in introducing such a regressive step at a time when EU members are opening up their schemes to further attract tourist shoppers; if his further attention has been drawn to the hugely negative impact this move will have particularly on the west of Ireland which is heavily dependent on tourist spend; his views on whether this has the potential to discourage future tourists from visiting Ireland in favour of other EU markets; and if he will make a statement on the matter. [32481/20]

Written answers

Minister for Finance

I have previously outlined the rationale for the changes proposed to the VAT Retail Export Scheme. This scheme enables visitors that are resident outside the EU to benefit from VAT relief on goods purchased in Ireland and subsequently taken outside of the EU. If the scheme applies to UK visitors post-Brexit without changes UK visitors will be able to buy goods VAT free in Ireland.

This could give rise to a considerable displacement of consumer purchases, resulting in significant VAT revenue losses, as purchases by UK visitors in Ireland would not produce any VAT revenues. Due to the volume of passenger movements between the UK and Ireland, the volume of refund applications is likely to significantly increase which simultaneously heightens the risk of abuse of the Retail Export Scheme post Brexit.

As I have previously advised, the measures in the Bill are precautionary and aim both to minimise the potential for abuse of the scheme and to reduce the possibility of diversion in retail consumption from Ireland to the UK, post Brexit.

The amended legislation proposed in the General Scheme of the Brexit Omnibus Bill 2020 provides for two elements to restrict the scheme. The first is a new requirement of proof of importation of the goods into the UK and the associated proof of payment, where applicable, of relevant UK VAT and duties, for the goods purchased under the scheme in order to qualify for a refund. The second is to provide that the value of qualifying goods must exceed €175 in value in order to be eligible for a refund under the scheme. This change is fully compatible with EU law and is in line with the EU VAT Directive. The monetary limit will apply in respect of all third country travellers who apply for a refund under the scheme, post commencement of the relevant sections.

The Ireland/Northern Ireland Protocol ensures that there will be no VAT Retail Export Scheme between Ireland and Northern Ireland. Any changes to the operation of the scheme will of course be kept under review by Revenue.

Covid-19 Pandemic Supports

Questions (383)

Jackie Cahill

Question:

383. Deputy Jackie Cahill asked the Minister for Finance if the fuel rebate scheme can be reintroduced for coach tourism operators, taxi drivers and other transport providers in the industry that can prove that their turnover is impacted by Covid-19 restrictions; and if he will make a statement on the matter. [32486/20]

Written answers

Minister for Finance

If the Deputy is referring to the Diesel Rebate Scheme (DRS) for hauliers and bus operators, this scheme has been continuously in operation since 1 July 2013. Therefore the question of its restoration does not arise.

The DRS is operated by the Revenue Commissioners, who will repay some of the mineral oil tax paid by a qualifying road transport operator when the diesel is:

- purchased by the business within the state

- used in the course of business transport activities; and

- used in qualifying motor vehicles.

To qualify for inclusion in the DRS, road transport operators must hold an appropriate road transport licence. This licence must be active in the claim period.

Further information in relation to the operation of the scheme including qualifying criteria, guidelines on the application process and quarterly repayment rates are available on the website of the Office of the Revenue Commissioners at the following link:

https://www.revenue.ie/en/companies-and-charities/excise-and-licences/mineral-oil-tax/diesel-rebate-scheme/index.aspx.

As the Deputy will be aware, VAT registered businesses are also eligible to claim a refund on the VAT paid for diesel used in the course of business activities.

Departmental Bodies

Questions (384)

Catherine Murphy

Question:

384. Deputy Catherine Murphy asked the Minister for Finance the status of and position regarding a developmental role for NewERA in view of the commitment in the programme for Government; if it will evolve strategies to leverage the balance sheets of State companies to drive new economic opportunities; and if he will make a statement on the matter. [32952/20]

Written answers

Minister for Finance

As the Deputy will be aware, NewERA was established in 2011 as a unit within the National Treasury Management Agency (“NTMA”), initially on a non-statutory basis. As a shareholder advisory unit, NewERA advised Ministers from a shareholder perspective on 5 commercial state bodies (“CSBs”) - ESB, Bord Gáis Éireann (now Ervia), EirGrid, Bord na Móna and Coillte.

The NTMA (Amendment) Act 2014 subsequently established the NTMA’s NewERA functions on a statutory basis, to:

- provide financial and commercial advisory services:

- to relevant Ministers on the exercise of their ownership functions in certain designated CSBs (then ESB, Ervia, EirGrid, Bord na Móna, Coillte, Irish Water and their subsidiaries);

- where requested by Ministers, with respect to other State bodies or assets;

- where requested by Ministers, in relation to the acquisition or disposal of State bodies or assets or the winding up or restructuring of State bodies; and

- in consultation with relevant Ministers, develop investment proposals in certain designated sectors (then energy, water, telecommunications and forestry).

Since then, NewERA’s role has expanded as it has been requested to provide advice to Ministers or Government Departments on additional CSBs, including: An Post, CIÉ group, daa, Shannon Group, Irish Aviation Authority, Dublin Port, Port of Cork, Shannon Foynes Port, VHI, and RTÉ.

Discussions are ongoing between my officials and the NTMA on how best to advance the commitment in the programme for Government regarding the role of NewERA. I hope to bring a proposal to Government once these discussions have concluded.

Retail Sector

Questions (385)

Cathal Crowe

Question:

385. Deputy Cathal Crowe asked the Minister for Finance the steps he will take to ensure that the retail export scheme threshold will not change. [33099/20]

Written answers

Minister for Finance

I have previously outlined the rationale for the changes proposed to the VAT Retail Export Scheme. This scheme enables visitors that are resident outside the EU to benefit from VAT relief on goods purchased in Ireland and subsequently taken outside of the EU. If the scheme applies to UK visitors post-Brexit without changes UK visitors will be able to buy goods VAT free in Ireland.

This could give rise to a considerable displacement of consumer purchases, resulting in significant VAT revenue losses, as purchases by UK visitors in Ireland would not produce any VAT revenues. Due to the volume of passenger movements between the UK and Ireland, the volume of refund applications is likely to significantly increase which simultaneously heightens the risk of abuse of the Retail Export Scheme post Brexit.

As I have previously advised, the measures in the Bill are precautionary and aim both to minimise the potential for abuse of the scheme and to reduce the possibility of diversion in retail consumption from Ireland to the UK, post Brexit.

The amended legislation proposed in the General Scheme of the Brexit Omnibus Bill 2020 provides for two elements to restrict the scheme. The first is a new requirement of proof of importation of the goods into the UK and the associated proof of payment, where applicable, of relevant UK VAT and duties, for the goods purchased under the scheme in order to qualify for a refund. The second is to provide that the value of qualifying goods must exceed €175 in value in order to be eligible for a refund under the scheme. This change is fully compatible with EU law and is in line with the EU VAT Directive. The monetary limit will apply in respect of all third country travellers who apply for a refund under the scheme, post commencement of the relevant sections.

The Ireland/Northern Ireland Protocol ensures that there will be no VAT Retail Export Scheme between Ireland and Northern Ireland. Any changes to the operation of the scheme will of course be kept under review by Revenue.

Primary Medical Certificates

Questions (386, 388, 397, 405, 427, 430, 446, 448)

Patrick Costello

Question:

386. Deputy Patrick Costello asked the Minister for Finance when his Department will reissue primary medical certificates for disabled drivers and passengers in view of the fact this has been suspended following a court decision in June 2020; and the provisions and alternative arrangements that have been made for persons effected by this in the intervening time. [33151/20]

Thomas Pringle

Question:

388. Deputy Thomas Pringle asked the Minister for Finance if he will report on the primary medical certificate programme; if the programme is accepting new applicants; and if he will make a statement on the matter. [33297/20]

Emer Higgins

Question:

397. Deputy Emer Higgins asked the Minister for Finance when the disabled drivers tax concession scheme will be reactivated to allow disabled drivers access the scheme which is so important to rural drivers with no access to public transport; and if he will make a statement on the matter. [32370/20]

Matt Carthy

Question:

405. Deputy Matt Carthy asked the Minister for Finance when a revised process for the recommencement of primary medical card assessments will be in place in order to allow drivers with disabilities to secure necessary supports; and if he will make a statement on the matter. [32499/20]

Eoin Ó Broin

Question:

427. Deputy Eoin Ó Broin asked the Minister for Finance his plans to amend the legislation or regulations governing the primary medical certificate scheme in view of the Supreme Court appeal decisions (details supplied). [33088/20]

Michael Ring

Question:

430. Deputy Michael Ring asked the Minister for Finance when the medical criteria set out in the regulations will be amended in view of the cessation of primary medical certificate assessments; when a revised basis for assessment will be established; and if he will make a statement on the matter. [33189/20]

Michael Collins

Question:

446. Deputy Michael Collins asked the Minister for Finance if his attention has been drawn to the fact that families still have not received the primary medical certificate in view of the judgment on 18 June 2020 and his statement on 6 October 2020 that the families would be granted the certificate; his views on the fact that further costs could be incurred (details supplied); and if he will make a statement on the matter. [33708/20]

Brendan Griffin

Question:

448. Deputy Brendan Griffin asked the Minister for Finance when he anticipates the reopening of the disabled drivers and passenger scheme primary medical certificate to applicants; and if he will make a statement on the matter. [33769/20]

Written answers

Minister for Finance

I propose to take Questions Nos. 386, 388, 397, 405, 427, 430, 446 and 448 together.

The Disabled Drivers & Disabled Passengers Scheme provides relief from VRT and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant. The cost of the scheme in 2019, excluding motor tax, was €72m.

The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain organisations. In order to qualify for relief an organisation must be entered in the register of charitable organisations under Part 3 of the Charities Act 2009, be engaged in the transport of disabled persons and whose purpose is to provide services to persons with disabilities.

In order to qualify for relief the applicant must hold a Primary Medical Certificate (PMC) issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate (BMC) issued by the Disabled Driver Medical Board of Appeal. Certain other criteria apply in relation to the vehicle and its use, including that the vehicle must be specially constructed or adapted for use by the applicant.

The terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 set out the following medical criteria, and that one or more of these criteria is required to be satisfied in order to obtain a PMC:

- be wholly or almost wholly without the use of both legs;

- be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs;

- be without both hands or without both arms;

- be without one or both legs;

- be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg;

- have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

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 them a PMC. The judgment found that the medical criteria set out in the Regulations did not align with the regulation making mandate given in the primary legislation to further define criteria for ‘severely and permanently disabled’ persons.

In the first instance I acknowledge that the persons who successfully challenged the Medical Board of Appeal's refusal to grant them a PMC are, on the basis of the Supreme Court decision, entitled to seek access to the Scheme. The Supreme Court decision raised complex issues, including the manner in which the persons concerned can access the Scheme, given that the Regulation which set out the medical eligibility criteria was not found to be invalid and given that the persons concerned were not assessed for a Primary Medical Certificate on the single criterion of being permanently and severely disabled. Notwithstanding this and in light of the Supreme Court decision I understand that the Medical Board of Appeal has issued Board Medical Certificates to the two successful litigants.

More generally, the Deputies will appreciate that the complex legal and policy issues raised by the Supreme Court decision will require careful consideration. In parallel to that consideration there is a need to examine how best the Scheme can target resources to those persons who most need them. I am currently giving consideration to policy and legislative proposals set out by my officials and will seek to progress this issue in the coming weeks.

In the interim, on foot of the legal advice received, it became clear that it was appropriate to revisit the six medical criteria set out in Regulation 3 of Statutory Instrument 353 of 1994 for these assessments. In such circumstances, it is not proposed to continue with PMC assessments until a revised basis for such assessments is established. The medical officers who are responsible for conducting PMC assessments need to have assurance that the decisions they make are based on clear criteria set out in legislation. While Regulation 3 of Statutory Instrument No. 353 of 1994 was not deemed to be invalid, nevertheless it was found to be inconsistent with the mandate provided in Section 92 of the Finance Act 1989.

My officials were in contact with the Medical Board of Appeal and with officials in the Department of Health and will continue to liaise with them, as required, going forward. I have also written to the Minister for Health to request that there are no further PMC assessments until a sound legal basis for such assessments is re-established.

While it is regrettable that PMC assessments are currently not taking place and I acknowledge that this will result in a growing waiting list, I can give a commitment that I will seek to bring clarity to this situation as soon as possible such that PMC assessments can re-continue based on a firm legal basis.

Finally, I would like to clarify that the Scheme itself is still operating. All persons or charitable organisations that can currently access the Scheme will continue to be able to do so and make claims for tax reliefs and the fuel grant in the normal manner.

Covid-19 Pandemic Supports

Questions (387, 411)

Jackie Cahill

Question:

387. Deputy Jackie Cahill asked the Minister for Finance if a car dealership can be considered for the EWSS if its turnover is down (details supplied); and if he will make a statement on the matter. [33185/20]

Matt Shanahan

Question:

411. Deputy Matt Shanahan asked the Minister for Finance if he will address a matter in relation to the employment wage subsidy support scheme (details supplied); if the terms can be amended to allow motor retailers to avail of the subsidy; and if he will make a statement on the matter. [32632/20]

Written answers

Minister for Finance

I propose to take Questions Nos. 387 and 411 together.

The Employment Wage Subsidy Scheme (EWSS) has been deliberately designed as an economy wide enterprise support that is open to all sectors on the basis of a turnover test that 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.

The EWSS turnover test has been specifically calibrated so as to target the subsidy at otherwise viable employers whose businesses continue to be adversely impacted by COVID-19 by requiring a comparison of the firm’s pre-pandemic operations with their current operations. The legislation provides 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.

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.

I am satisfied that the EWSS already contains sufficient flexibility to take account of changes in business circumstances and is targeted at employers across all sectors who are most in need of support.

For those who may not be eligible for the EWSS, I would draw attention to the comprehensive package of other business and employer supports that have been made available since the July Stimulus Plan and Budget 2021 - including the Covid Restriction Support Scheme (CRSS), the Credit Guarantee Scheme, the SBCI Working Capital Scheme, the Sustaining Enterprise Fund, and the Covid-19 Business Loans Scheme.

Question No. 388 answered with Question No. 386.

Disabled Drivers and Passengers Scheme

Questions (389)

Róisín Shortall

Question:

389. Deputy Róisín Shortall asked the Minister for Finance the position in relation to the disabled drivers scheme and the VAT and VRT off the fuel for scheme recipients if a disabled driver purchases an electric car; if they will receive their VAT rebate if their car is powered on electricity; and if he will make a statement on the matter. [33440/20]

Written answers

Minister for Finance

I am informed by Revenue that the Disabled Driver and Passenger Scheme provides for the remission or repayment of VRT up to the maximum limits as provided for in Statutory Instrument 353 of 1994. Section 135C(3)(b) of the Finance Act 1992 further provides that a Category A series production electric vehicle can avail of relief of up to €5,000 on the VRT due.

The Disabled Drivers and Passengers Scheme treats electric and other vehicles on the same basis; the amount of VRT due or paid on any vehicle is remitted or repaid up to the maximum relief applicable (€10,000 for VRT/VAT relief in the majority of cases). Because of the separate VRT relief for electric vehicles, the amount of VRT due or paid on such a vehicle may be lower than the maximum relief permitted. In such a case the VRT relief will equate to the actual VRT due or paid. The VAT element of the refund is given regardless of whether it is an electric vehicle.

Questions Nos. 390 to 392, inclusive, answered with Question No. 380.

Vehicle Registration Tax

Questions (393)

Michael Healy-Rae

Question:

393. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding UK registered cars; and if he will make a statement on the matter. [33733/20]

Written answers

Minister for Finance

I am informed by Revenue that, for a person with a normal residence outside of the State, a temporary exemption from the requirement to register for a period not exceeding 12 months may be granted under a number of conditions including that the vehicle is taxed and registered abroad, owned by a person established outside the State and is not driven by a person except with the permission of Revenue.

Vehicles driven by State residents are generally required to be registered in the State. However, a State resident may apply for temporary exemption if they are employed by an employer established and trading in another member State or if they are self-employed and have a business that is principally trading in another Member State.

More details are available at the following link: https://www.revenue.ie/en/importing-vehicles-duty-free-allowances/guide-to-vrt/reliefs-and-exemptions/temporary-exemption.aspx.

Questions Nos. 394 and 395 answered with Question No. 380.

Home Building Finance Ireland

Questions (396)

Eoin Ó Broin

Question:

396. Deputy Eoin Ó Broin asked the Minister for Finance the number of applications for loans to Home Building Finance Ireland since its establishment; the number of loan approvals; the number of loan drawdowns; the monetary value of the applications, approvals and drawdowns; and the number of units of accommodation involved in the applications, approvals and drawdowns to date. [32327/20]

Written answers

Minister for Finance

I am advised by HBFI that it recently issued a mid-year update on its business performance to 31st July 2020. Further details are available at https://www.hbfi.ie/news/hbfi-trebles-loan-approvals-to-340m-in-six-months-to-july-2020.

To deal more specifically with the Deputy’s queries:

- 89 loan applications with a value of €907 million were received to end July.

- 29 loans were approved with a value of €340 million to support 1,477 new homes to end July.

- 17 are recent applications and were going through the assessment process at the end of July.

- 12 applications were declined by HBFI as they were not capable of meeting HBFI’s risk and credit criteria to protect taxpayer capital.

- In the remaining 31 applications, customers either did not proceed with the housing scheme or they secured funding elsewhere.