Written Answers Nos. 121-135
121. Deputy Ruairí Ó Murchú asked the Minister for Finance the additional resources being allocated to the Revenue Commissioners following the Brexit checklist sent to approximately 225,000 businesses; and if he will make a statement on the matter. [30601/20]
View answer199. Deputy Ruairí Ó Murchú asked the Minister for Finance the number of businesses to date in County Louth that have been allocated an EORI number; and if he will make a statement on the matter. [30600/20]
View answerI propose to take Questions Nos. 121 and 199 together.
I am advised by Revenue that 1,374 businesses in Co. Louth are currently registered for customs and therefore have an Economic Operators Registration and Identification (EORI) number. I am also advised by Revenue that 94% of imports from and 99% of exports to the UK in 2019 undertaken by businesses in Co. Louth were undertaken by businesses that have an EORI number.
An EORI number is an essential prerequisite for businesses to be able to undertake trade with or through the UK, excluding Northern Ireland, from 1 January 2021. I understand that to assist businesses in the customs registration process Revenue has published a helpful step-by-step guidance video on its website.
I strongly urge all businesses that will be impacted by Brexit to use the short time available between now and 1 January 2021 to put in place the necessary arrangements that will enable them to be able to undertake trade with and through the UK, excluding Northern Ireland, from that date.
The Deputy will be aware of the whole of Government work of engaging with business to assist them in their Brexit preparations. The 225,000 letters that the Deputy refers to were issued by the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, T.D. to all companies registered with the Companies Registration Office. The letter sets out what a company needs to do to get its business ready for the UK’s departure from the EU Single Market and Customs Union from 1 January 2021.
As regards additional resources for Revenue, I can advise the Deputy that Revenue initially determined that it required 600 additional staff. The Government approved this Brexit related recruitment in September 2018. In the period between September 2018 and October 2019, Revenue assigned over 580 staff to Brexit related roles. In light of the experience gained over the last 18 months and the need for a strong focus on measures to combat illegitimate trade, a risk that will be enhanced from 1 January 2021, Revenue recently re-assessed its requirements and determined that it will require approx. 300 staff in addition to the 600 already approved. Revenue is currently recruiting and training these staff. I am also advised by Revenue that as an integrated tax and customs administration, it will deploy resources to quickly confront any risks as they emerge.
122. Deputy Éamon Ó Cuív asked the Minister for Finance if all individual taxpayers will be able to make manual submissions to the Revenue Commissioners of their tax returns rather than online at least until universal high-speed broadband is available throughout Ireland under the national broadband plan; and if he will make a statement on the matter. [38362/20]
View answerI am advised by Revenue that mandatory electronic filing and payment of a wide range of taxes has been operating since 2009.
The legislation underpinning the mandatory use of these electronic services provides for specific exclusions where a taxpayer does not have the capacity to file and pay online. In this context ‘capacity’ means having sufficient access to the internet and circumstances where a person is prevented by reason of age or infirmity (mental or physical) from using online services.
For taxpayers who are not obliged to file online for the reasons outlined, Revenue provides paper returns and alternative payment options to assist them in meeting their filing obligations. If the Deputy is aware of any person who is experiencing difficulties with online access for tax return filing or tax payment services, he should make Revenue aware of the details so that the matter can be followed up.
123. Deputy Martin Browne asked the Minister for Finance if he has asked the motor insurance industry to provide refunds to learner drivers, who typically pay very high premiums until they receive their licences but have been unable to take the tests due to Covid-19 restrictions. [36600/20]
View answerAt the outset, policy in relation to driving tests and any decision to postpone tests, are a matter for the Minister for Transport, Eamon Ryan TD. In relation to insurance refunds for learner drivers, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing of insurance products, as this is a commercial matter for insurers. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so. While I have a full understanding that learner drivers have not been able to take their test as a result of COVID-19 restrictions, I am not in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of drivers or vehicles, including those with learner permits.
However, I believe that insurers are a fundamental part of the financial services sector and they have a major role to play in ensuring that their customers are treated fairly in these very difficult times. In view of this, at a meeting on 17 April with Insurance Ireland, I called on insurers to be pro-active and generous in relation to their treatment of motor insurance customers. In this regard, I pointed out that a combination of the profitable private motor insurance market over the last 18 months and what is likely to be a significant reduction in claims for this period due to COVID 19 related travel restrictions, provided a strong case for premium refunds, thus providing some financial relief to their customers during this extraordinary time. On 24 April, Insurance Ireland announced that a number of their members: Allianz; AXA; FBD; RSA; and Zurich had signed up to commitments on premium reliefs for motor customers. In addition, Liberty Insurance wrote to me directly informing me of discounts that it would apply to its customers.
Finally, while the amounts provided by way of rebate were small and applied across the board, it would be my expectation that drivers with a learner permit should have been similarly treated. Ultimately, however, I believe that those learner drivers impacted by the restrictions, have the option to shop around for better prices and service from their insurer upon renewal. In this regard, I believe they will remember and favour those companies that have made steps towards meeting their needs at this difficult time.
125. Deputy Ged Nash asked the Minister for Finance if his attention has been drawn to the fact that some motor insurance companies are only providing a Covid-19 rebate to their customers upon renewal of policy; his views on whether this is unfair to customers who may wish to change their provider rather than renew their cover with their existing provider; and if he will make a statement on the matter. [39157/20]
View answerAt the outset, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing of insurance products, as this is a commercial matter for insurers. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.
However, I believe that insurers have a fundamental role to play in ensuring that their customers are fairly treated during these very difficult times. In view of this, at a meeting on 17 April with Insurance Ireland, I called on insurers to be pro-active and generous in relation to their treatment of motor insurance customers . On 24 April, Insurance Ireland announced that a number of its members: Allianz; AXA; FBD; RSA and Zurich had signed up to commitments on premium reliefs for motor customers. In addition, Liberty Insurance wrote informing me directly of discounts that it would apply to its customers.
It is my understanding that the companies that signed up to these commitments have offered premium reliefs on a flat rate basis to their customers either by way of refunds or vouchers. While it should also be noted that these are voluntary measures and neither I, nor the Central Bank, have any role in adjudicating these matters, I continue to expect that all insurers will be pro-active and think of the longer term interests of the market and their customers. This also applies to those insurers that did not sign up to these commitments, and whom I understand, from recent meetings that Minister of State Fleming has held with the main motor insurance providers, may be reflecting any savings made this year through reductions at policy renewal. Ultimately, I believe customers will remember and favour those companies that have made steps towards meeting their needs in these difficult times.
126. Deputy Jennifer Carroll MacNeill asked the Minister for Finance if his attention has been drawn to the fact that domestic employers that availed of the temporary wage subsidy scheme for domestic employees such as childminders are being asked to pay the full amount given to them back to the Revenue Commissioners as part of the scheme; if a reimbursement scheme can be set up to cover this loss as had employers not availed of the temporary wage subsidy scheme employees would have applied for the pandemic unemployment; and if he will make a statement on the matter. [38835/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS), which is provided for in section 28 of the Emergency Measures in the Public Interest (COVID-19) Act 2020, operated from 26 March 2020 to 31 August 2020 and was replaced by the Employment Wage Subsidy Scheme (EWSS) from 1 September 2020.
The scheme was introduced as an emergency measure to provide financial support to businesses that were severely impacted by the pandemic and enabled employees whose employers could no longer afford to pay wages receive subsidy payments. The scheme was not intended as a support to domestic employers nor was it ever implied that it applied to them.
The TWSS operated on a self-assessment basis with the onus on applicants to satisfy themselves that they fully met the eligibility criteria for the scheme and to self-declare to Revenue that they correctly qualified. To assist employers in determining their eligibility, Revenue published very extensive guidance, which clearly set out the qualifying conditions, including the requirement that a minimum 25% decline in business turnover had occurred due to COVID-19 related restrictions. Revenue also deployed very significant resources to a TWSS Helpline to ensure employers were supported to the greatest extent possible through telephone and written (including e-mail) engagement.
The provision of domestic duties by an employee within a private household where the employer is the owner or occupier is not a business activity for the purposes of the scheme. A relevant business in the context of the TWSS generally includes manufacturing, buying, selling or supplying goods or services with a view to making a profit, none of which can be associated with employing domestic staff. It is also not possible for a domestic employer to meet the ‘25% turnover’ eligibility test as there is no turnover associated with engaging a domestic employee.
In the event that any employers, including domestic employers, received TWSS payments to which they were not entitled, it is very important that they engage with Revenue and agree repayment arrangements. Where this does not happen, it may result in Revenue raising assessments and deploying debt collection sanctions to secure the repayments.
From the perspective of the employee, 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 their employment contract, hours worked and an employer’s capacity to pay wages to employees in light of the impact of the Covid-19 pandemic are all matters that are outside the remit of the scheme.
The question in relation to applications for the Pandemic Unemployment Payment is a matter for my colleague, the Minister for Social Protection.
129. Deputy Brendan Smith asked the Minister for Finance if he will convey again to a bank (details supplied) the need to retain its business network which is important for many rural communities; and if he will make a statement on the matter. [39167/20]
View answerAs the Deputy will be aware, I met with representatives of Ulster Bank on the 21st of October. I outlined that I expected that staff, customers and other stakeholders would be informed promptly about any decisions being made.
News of the review is, of course, unsettling for all stakeholders, especially the staff and customers. I outlined that I expect Ulster Bank to keep all its stakeholders, especially its staff and customers, fully informed about any developments in the review and engage with them in relation to any proposals or decisions that result from the review promptly.
I also emphasised the importance of Ulster Bank to the Irish financial services market, to the wider economy and to the communities it serves.
Ulster Bank confirmed that the strategic review is ongoing and that no decision has yet been taken. Ulster Bank also confirmed that there is no set timetable for this review and that it is fully aware of the strategically important role that Ulster Bank plays in the provision of financial services to the Irish market.
While I will have further engagement with the bank as the review process continues, I would like to emphasise that I have no role in the review or any commercial decisions arising from it. My officials will continue to monitor developments.
130. Deputy Jim O'Callaghan asked the Minister for Finance his Department’s current projection of the extent to which the economy will contract in 2020; and if he will make a statement on the matter. [39187/20]
View answerAt the time of Budget 2021, my Department projected that GDP would decline by -2½ per cent this year, with (modified) domestic demand - a more appropriate indicator for domestic economic conditions - set to decline by just over 6 per cent. These projections were based on the assumption that targeted measures would be introduced in response to any further pick-up in the Covid19 infection rate; crucially, it was assumed that there would not be a second national lockdown. However, in light of the deteriorating public health situation, the country moved to Level 5 of the Plan for Living with Covid19 on October 22nd.
A downside scenario analysis published in the Budget estimated that more stringent restrictions in the fourth quarter would see GDP contract by about -3½ per cent this year, about 1 percentage point lower than in the baseline scenario.
Although the fall-out from the latest restrictions will undoubtedly be significant, the economic impact is unlikely to be as severe as in this scenario or as that seen during the first lockdown earlier this year, as construction, education, childcare and most manufacturing activity remain open. Indeed, while some of the ultra-high frequency indicators that the Department monitors, such as payment card transactions and mobility data, have fallen since the restrictions were introduced, the falls have not been as severe as in the spring.
The introduction of these restrictions has, however, meant that many additional people now rely on income support schemes. The number of recipients of the Pandemic Unemployment Payment (PUP) stood at 352,000 as of November 23rd – an increase of around 108,000 since level 5 restrictions were introduced. However, the rate of increase in the number of recipients has slowed in recent weeks and with more sectors remaining open compared to the spring, the number of people claiming the PUP should remain well below the peak of 600,000 recorded in early May.
Additionally, while the recent move to level 5 means that the contraction of the economy this year may be greater than anticipated at the time of the Budget, it is possible that a better-than-expected performance in the third quarter, as suggested by retail sales, construction and exports data, could offset some of the impacts of these restrictions on the overall annual figures.
131. Deputy Pa Daly asked the Minister for Finance the steps he will take to ensure that banking fees for cashless transactions from the start of the Covid-19 pandemic to date will be refunded in circumstances in which customers were unaware of the fees being levied and were using cashless to reduce the risk of viral spread during the pandemic; and if he will make a statement on the matter. [36679/20]
View answerAll credit institutions in Ireland are independent commercial entities and the imposition of bank fees and charges are decisions to be made by the boards and management of individual banks which need to be run on an independent and commercial basis. You will be aware that, as Minister for Finance, I have no statutory role in relation to the charges applied by credit institutions. Under Section 149 of the Consumer Credit Act 1995 (the Act), as amended, the responsibility for the regulation of bank fees lies with the Central Bank of Ireland.
I am advised by the Central Bank of Ireland that under Section 149 of the Act, a credit institution must notify the Central Bank if they wish to:
- Introduce any new customer charge for providing certain services; or
- Increase any existing customer charge for providing certain services.
Each notification received by the Central Bank is assessed and robustly challenged in accordance with the specific criteria set out in Section 149 of the Act. Having considered the proposed charge(s) under the assessment criteria as set out under the legislation, the charges are either rejected, approved at lower levels than requested by the credit institution, or approved in full. Credit institutions are free to impose any pricing differentials for the service up to the permitted maximum and are free to waive charges at their discretion for commercial or competitive reasons.
Where a regulated entity intends to introduce new charges or increase any existing charges, under provision 6.18 of the Central Bank’s Consumer Protection Code, it must give notice to affected consumers of the introduction of any new charges or of increases in charges, specifying the old and new charge, at least 30 days prior to the charge taking effect. If customers are unhappy with their current account provider for any reason, including cost, they have the right to switch to a different provider.
The Central Bank has clearly expressed its expectations that all regulated firms take a consumer-focused approach and act in their customers’ best interests at all times. The Central Bank encourages regulated firms to take all possible measures to assist their customers during this difficult time and to help them to the greatest extent possible while they work through this public health emergency.
I would encourage all bank customers, particularly those adversely affected by changes in bank charges, to shop around and compare the fees and benefits of the different current accounts available. The Competition and Consumer Protection Commission (CCPC) website provides useful information to assist customers to compare and switch accounts; this website can be accessed at https://www.ccpc.ie/consumers/money-tools/.
Under the Payment Accounts Directive, all Irish banks must make available a basic bank account for people who currently do not have access to a bank account. The basic bank account is free of charge for everyday banking services for the first year. After 12 months, the credit institution may review the amounts lodged to the account over the preceding 12 months, and, where the total of those amounts exceeds the equivalent of the national minimum hourly rate of pay multiplied by 2,080, the credit institution may charge a reasonable fee for the account. The consumer must be given two months’ notice before any such reasonable fee may be imposed.
The Payment Accounts Directive also requires that a consumer must be provided with a Fee Information Document setting out all fees linked to an account, in good time before entering into a framework contract with a consumer. A consumer must also be provided, at least annually, with a Statement of Fees, setting out all fees incurred in respect of the account. These requirements ensure the consumer is fully informed of all fees linked to a payment account. Where a consumer wishes to switch payment accounts, the Central Bank’s Code of Conduct on the Switching of Payment Accounts with Payment Service Providers 2016 sets out the requirements that both the existing and new account provider must adhere to when undertaking the switching process.
132. Deputy Neale Richmond asked the Minister for Finance the status of the uptake of the employer wage subsidy scheme; and if he will make a statement on the matter. [38071/20]
View answerThe Deputy will be aware that the Financial Provisions (Covid-19) (No. 2) Act 2020 (Act No. 8 of 2020) provides for the introduction of the Employment Wage Subsidy Scheme (EWSS), which is an economy-wide enterprise support for eligible businesses in respect of eligible employees.
I have been advised by Revenue that as of Friday 20 November, there were 41,215 employers registered for the Employment Wage Subsidy Scheme.
Up to 19 November, 38,300 employers had filed 335,000 payroll submissions in respect of 410,000 eligible employees. The total amount paid out under the EWSS amounts to €796.4 million while the total value of PRSI credits processed in connection with the scheme amounts to €156.4 million.
The Deputy may be aware that Revenue publish weekly statistics on the EWSS and the Covid Restrictions Support Scheme every Thursday.
135. Deputy Ged Nash asked the Minister for Finance his views on whether additional fees being imposed on current account holders of a bank (details supplied) from 28 November 2020 are justified in view of recent reports from market analysts that suggest that the organisation has more than enough capital to cushion the Covid-19 crisis; his views on whether these new charges are regressive and will particularly effect lower income customers, given that they remove the existing option of fee-free banking for those customers who keep at least €2,500 in their current accounts; if he plans to discuss this with the organisation and seek an indefinite suspension of these fees; and if he will make a statement on the matter. [39156/20]
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.
