Written Answers Nos. 60-90
72. Deputy Neasa Hourigan asked the Minister for Finance the status of the legal issues that have arisen following a court case in respect of primary medical certificates; and if he will make a statement on the matter. [37826/20]
View answer74. Deputy Michael Moynihan asked the Minister for Finance when changes to the disabled drivers and passengers scheme will come into effect; and if he will make a statement on the matter. [39214/20]
View answer103. Deputy Alan Dillon asked the Minister for Finance when the HSE will be in a position to resume issuing primary medical certificates in the context of the disabled drivers tax concession scheme, which was halted in 2020 as a result of a Supreme Court ruling; and if he will make a statement on the matter. [38317/20]
View answer124. Deputy Mark Ward asked the Minister for Finance when the issue with regard to disabled drivers and passengers obtaining a primary medical certificate will be resolved; and if he will make a statement on the matter. [33171/20]
View answer151. Deputy Niamh Smyth asked the Minister for Finance the progress being made in ensuring that persons can once again access a primary medical certificate to access the disabled drivers and passengers scheme; when the amendment is likely to be passed; and if he will make a statement on the matter. [37717/20]
View answer195. Deputy Denis Naughten asked the Minister for Finance his plans to amend the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994; and if he will make a statement on the matter. [36130/20]
View answer205. Deputy Paul Kehoe asked the Minister for Finance the position on the review being carried out of the primary medical certificate; when it will be completed; and if he will make a statement on the matter. [39279/20]
View answerI propose to take Questions Nos. 72, 74, 103, 124, 151, 195 and 205 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 medical criteria, and that one or more of these criteria is required to be satisfied in order to obtain a PMC.
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 judgement 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.
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, PMC assessments were discontinued until a revised basis for such assessments could be 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.
In order to allow for the PMC assessments to recommence I brought forward a committee stage amendment to the Finance Bill to provide for the existing medical criteria in primary legislation. When the Bill is enacted, this will allow for assessments to recommence in circumstances where the legal basis for such assessments is clarified.
I consider this to be an interim solution only. While I am very aware of the importance of this scheme to those who benefit from it, I am also aware of the disquiet expressed by members of this house and others in respect of the difficulties around access to the scheme. With this in mind I have asked my officials to undertake a comprehensive review of the scheme, to include a broader review of mobility supports for persons with disabilities, and on foot of that review to bring forward proposals for consideration.
75. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains satisfied that Ireland’s economy remains robust and stable when compared to other economies across Europe, within the eurozone and without; and if he will make a statement on the matter. [39138/20]
View answerThe outbreak of the Covid-19 pandemic earlier this year and the restrictions introduced to suppress the virus led to an unprecedented contraction of global economic activity. Lockdown restrictions saw the Irish economy contract by 6 per cent in the second quarter - the largest quarterly decline on record.
This figure was at the lower-end in a European context, with GDP declining by -20 per cent in the UK and -12 per cent in the euro area respectively. However, Ireland’s GDP was boosted by a surge in exports of pharmaceuticals, and masks a very sharp hit to the domestic economy. By contrast, domestic demand declined by -16 per cent in the second quarter, a figure that is more in line with the contractions seen in other countries.
As restrictions were lifted over the summer, however, the economy showed signs of recovery. The unemployment rate, which peaked at 30 per cent in April, declined to 16 per cent in September. Similarly, retail sales, which collapsed in April, surged in May and June, with activity remaining above the pre-pandemic level since then. The lifting of restrictions in other European countries also resulted in rebounds in economic activity, with GDP growth of around 16 and 13 per cent recorded in the UK and euro area in the third quarter.
At the time of Budget 2021, my Department forecast a decline in GDP of -2½ per cent this year, with domestic demand projected to fall by 6 per cent. These projections assumed that targeted measures would be introduced in response to any increase in the Covid-19 infection rate; crucially, that there would not be a second national lockdown. However, the recent move to level 5 of the Plan for Living with Covid-19 means that the contraction of the economy this year is likely to be more severe than anticipated. This is by no means out of line with the experience of other European countries. Recent increases in Covid-19 cases have seen the introduction of additional restrictions in the UK and euro area, with GDP declines of -10 and -8 per cent respectively forecast by the European Commission for this year.
76. Deputy Joe Flaherty asked the Minister for Finance the number of businesses in counties Longford and Westmeath that have qualified for support under the Covid restrictions support scheme; and if he will make a statement on the matter. [39185/20]
View answerThe Covid Restrictions Support Scheme (CRSS) announced in the Budget on 13 October 2020 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. CRSS will supplement the existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS).
The CRSS is aimed at businesses which, because of specific terms of the restrictions introduced by Government, are required to prohibit or significantly restrict customers from accessing their business premises, with the result that the business must temporarily close or operate from their premises at a significantly reduced level. The details of the scheme are set out in Finance Bill 2020 and guidelines on the operation of the scheme, including the eligibility criteria, are available on the Revenue website.
As I mentioned earlier in response to a question from Deputy Cowen, the registration system for CRSS was released by Revenue on 1 November 2020. Up to 26 November 2020, 10,200 businesses have registered for CRSS in respect of 11,100 business premises. A further 3,700 applications are currently being processed by Revenue.
In relation to the number of business premises registered for the specific Counties mentioned by the Deputy, the numbers (rounded to the nearest 100) as at 23 November are as follows;
Longford – 100
Westmeath – 200
Eligible businesses registered for CRSS, which carry on a business activity from a business premises located in a region that is subject to COVID-19 related restrictions, can now make a claim for payment under the CRSS via the eRepayments system through Revenue’s Online System (ROS), where they satisfy the qualification criteria for the scheme.
CRSS applies as regards restrictions in place from 13 October 2020 and eligible businesses that have been subject to restrictions since that date may make a claim covering the period from 13 October 2020 up to the expected end day of the current restrictions, which is 1 December 2020. One payment will be made to eligible businesses covering this restrictions period, with payments made by Revenue within 3 days of the submission of a qualifying claim. Up to 26 November 2020, Revenue has processed €51.6 million CRSS payments relating to 8,200 premises with €50.0 million of this processed for payment already.
I am informed by Revenue that information on payments made on a County by County basis will be published on the Revenue website shortly, once the relevant data is available and validated by Revenue.
78. Deputy Richard Bruton asked the Minister for Finance the innovations he plans for the upcoming statement of strategy of his Department. [36171/20]
View answerIn accordance with the provisions of the Public Service Management Act 1997, my Department is currently preparing its Statement of Strategy for the period 2021-2023. The development of the new Statement of Strategy will reflect the objectives as set out in the Programme for Government. When finalised, it will serve as a framework for, and guide to, the business planning, resource allocation and risk management processes in the Department over the next three years.
In recent years, there has been significant reform and innovation in the Public Service. These changes continue to deliver improved services and cost effectiveness across a range of themes such as digital government, public procurement and shared services. Considerable reforms have been implemented to Ireland’s budgetary framework. The new approach is intended to permit a more open budgetary process, allow stronger dialogue with the Dáil on key elements and facilitate the continued central role of Government in the development of budgetary proposals, consistent with the maintenance of stable public finances.
My Department plays a central role in the achievement of the Government’s economic, fiscal and financial goals. The macroeconomic, fiscal and financial implications of having to live with the implications of Covid-19 will frame all aspects of the Statement of Strategy and will inform all of the key challenges and opportunities within our operating environment.
Through this Strategy, my Department will implement policies to support economic stabilisation and fiscal sustainability and will shape banking and financial services policy for a modern vibrant economy that supports innovation and sustainability.
My Department also has a significant role in EU and international matters, carrying out a broad range of activities as well as international outreach. Development and implementation of strategies at EU/Euro area level and internationally in relation to economic, fiscal and financial policy formulation will feature in the new Statement of Strategy objectives. Since the onset of the Covid-19 pandemic, the management of this aspect of my Department’s remit has allowed my Department to pursue innovative initiatives which we will continue to enhance under the new Statement of Strategy.
I understand that the Department of Public Expenditure and Reform recently published an innovation strategy for the Public Service and hosted an innovation strategy workshop to provide guidance on incorporating innovation into the Statements of Strategy of Government Departments. The guidance provided in this new innovation strategy will help us in continuing to grow innovation across Government Departments.
79. Deputy Thomas Gould asked the Minister for Finance if his attention has been drawn to a situation whereby a credit union (details supplied) has removed its death grant and refused to reinstate the grant despite a motion passed at the AGM in 2019. [39152/20]
View answerThe Central Bank have informed me that credit unions may participate in Death Benefit Insurance schemes whereby a payment, intended to assist with funeral expenses, is made following the death of a member. The Death Benefit Insurance is provided by insurance undertakings. Some credit unions discharge some or all of the cost of the insurance on behalf of their members, while other credit unions have adopted a member pay approach. Central Bank credit union regulations do not place any specific requirements on credit unions that participate in Death Benefit Insurance schemes.
It is a commercial decision for individual credit unions to determine whether they decide to offer Death Benefit Insurance or indeed whether they decide to discontinue providing the service.
The Credit Union Act, 1997 is silent on withdrawal of services or the notice to be provided to members by credit unions before the withdrawal of services. The Registry of Credit Unions expects credit unions to communicate with their members in a clear and transparent manner, including in circumstances where they intend to amend or discontinue an existing service. The Registry of Credit Unions also expects credit unions to give reasonable notice to affected members in such circumstances.
On motions made at general meetings, while Part V of the 1997 Act sets out provisions relating to meetings and resolutions, it is silent on motions moved at general meetings.
As Minister for Finance, I recognise the important role of credit unions as a volunteer co-operative movement and the Government is determined to continue to support a strengthened and growing credit union movement. However, I have no role in the provision of Death Benefit Insurance by credit unions.
80. Deputy Mick Barry asked the Minister for Finance the tax, VAT and excise reliefs and exemptions that currently exist in Irish tax law for armed forces from another state; the estimated cost of these reliefs and exemptions; and if he will make a statement on the matter. [39217/20]
View answer146. Deputy Mick Barry asked the Minister for Finance if he will report on the engagement he made at a European Council level in the approval of Directive (EU) 2019/2235; if he opposed the reliefs for NATO and EU CSDP troops based outside their home states contained in that directive; if he sought a derogation; and if he will make a statement on the matter. [39216/20]
View answerI propose to take Questions Nos. 80 and 146 together.
Although there are currently no measures in Irish VAT or Excise legislation that relate to reliefs for armed forces from another state, there are provisions in EU VAT and Excise legislation that are applicable notwithstanding that the measures have not been transposed into Irish legislation.
In respect of VAT, the provision in question is Article 151(1)(d) of the VAT Directive. This provides that the supply of goods or services to another Member State shall be zero-rated for VAT purposes where that supply is intended for the use of armed forces of any state party to NATO other than the Member State of destination itself. Such supplies include supplies to messes and canteens. VAT is a self-assessed tax and it is not known if any supplies have been zero rated on the basis of this provision. Supplies to other Member States and exports to third countries are generally zero rated in any case.
In respect of Excise, the provision in question is Article 12 (1)(c) of the General Excise Directive. This provides that excise goods, which relates to alcohol, tobacco and mineral oil products, shall be exempted from payment of excise when they are intended to be used by the armed forces of any state party to NATO when based in an EU Member State, other than the armed forces of the EU Member State itself. As liability to excise duty arises when excise goods are released for consumption in the State and as no armed forces of another State have been based here at any time, the question of the use of this provision has not arisen.
Both the VAT and the Excise provisions mentioned have been in place since 1993 and are already applicable to Ireland. Measures to transpose these provisions have been included in Finance Bill 2020 as Ireland has a legal requirement to ensure that our national legislation on VAT and Excise is correctly aligned with the EU Directives. This is notwithstanding the fact that there is no change to the constitutional provisions relating to armed forces which effectively prohibit foreign forces being based or maintained within the State. These measures relate to the VAT and Excise treatment of supplies only and do not impact on Ireland’s policy of military neutrality or any other policy in relation to defence.
A further Council Directive which was enacted in 2019, Council Directive 2019 / 2235, contains a number of measures in respect of EU defence efforts which will take effect from 1 July 2022 and will be binding on all EU Member States, including Ireland. The purpose of these measures is to align the VAT and Excise treatment for EU forces, undertaking a common defence effort under the common security and defence policy of the EU, to the current VAT and Excise treatment in place for NATO forces. The transposition of these measures into Irish legislation is also included in Finance Bill 2020. These provisions will have an extremely limited application, if any, and will not give rise to any cost to the exchequer.
As these articles do not impact on Ireland's neutrality I did not seek a derogation for Ireland.
81. Deputy Alan Farrell asked the Minister for Finance the status of measures being taken to encourage more companies to adopt recommendations made by the task force on climate-related financial disclosures; and if he will make a statement on the matter. [38073/20]
View answerWith Government backing since 2012, Ireland has long recognised the importance of sustainable finance for increasing economic activity, employment creation and ensuring that the necessary environmental safeguards area developed and implemented in Ireland and globally.
As a result, we have been strongly supportive of sustainable finance initiatives at EU and wider international levels. Following the launch of the European Commission’s Action Plan on Financing Sustainable Growth in March 2018, we have witnessed significant progress at EU level in the area of sustainable finance, with Ireland engaging constructively on the related legislative proposals. For example, I was delighted that Ireland was amongst a handful of locations to host a virtual workshop during the summer on the EU Renewed Strategy for Sustainable Financial Services with leading Irish companies, academics and EU Commission officials.
Progress on the Taxonomy Regulation and the Disclosures Regulation, which aims to remove barriers to advancing sustainable goals, will be the cornerstone of the EU’s sustainable finance regulatory architecture and this represents a significant step in ensuring that the EU and Ireland will be key players in sustainable finance in the years ahead. For example, the new Disclosure Framework, which is to apply from March of 2021, will provide greater transparency and enable end-investors to compare different financial products in terms of their environmental impact. The application of the Taxonomy Regulation in particular, which will establish a harmonised classification system for environmentally sustainable activities, is essential in this regard.
However, there are also important pieces of the jigsaw yet to be completed and these will be essential to achieve maximum value from the new sustainable finance regime. In particular, the lack of reliable and agreed climate-related and environmental data is currently a key challenge for financial market participants, as the availability of, and accessibility to, high quality and reliable ESG (Environmental and Social Governance) data remains a prerequisite for enabling investors to make well informed and sustainability informed decisions.
The recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD), which seeks to develop consistent climate-related risk disclosures for use by companies, are very important in this regard, representing best practice for companies, opening up access to more sustainable pools of growth capital, meanwhile addressing the needs of investors for greater transparency. The Government welcomes the adoption of the TCFD by those corporates who are already engaged with the taskforce and it is actively encouraging greater take up as more Irish firms look to accelerate and scale their own climate transition plans. For example, Action 29 of the Ireland for Finance Action Plan 2020, Sustainable Finance Skillnet supports the development of several sub-sector focused sustainable finance skills development programmes across banking, insurance and asset management by building a suite of programmes focused on a number of aspects including TCFD disclosure. It is expected that the upcoming Ireland for Finance Action Plan 2021 will build upon this further.
Similarly, we are very supportive of the work of the European Commission through the ongoing revision of the Non-Financial Reporting Directive, which also seeks to address issues in relation to ESG data reporting.
82. Deputy Niamh Smyth asked the Minister for Finance his plans to implement reforms in view of the increasing cost of car insurance premiums; the latest discussions his Department has had on this issue; the persons or bodies the issue was discussed with; and if he will make a statement on the matter. [37718/20]
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, nor can we compel any insurer operating in the Irish market to provide cover. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive), which expressly prohibits Member States from doing so.
Nonetheless, I can assure the Deputy that insurance reform is a key policy priority for this Government. In terms of motor insurance specifically, I would note that figures from both the Central Statistics Office and National Claims Information Database have shown that average premium prices have declined in recent years. Nonetheless, there is still a need for reforms to ensure that premiums also reduce and stabilise for other insurance products, in particular those of interest to businesses, including SMEs, such as employer and public liability insurance.
There are a number of areas that require reform and this is why making progress on these will require a ‘whole-of-Government’ approach. This is recognised in the Programme for Government, which lays out commitments that are aimed at addressing consumer and business concerns on the cost of insurance. These include increasing transparency; reviewing duty of care legislation; looking at how to further enhance the role of the Personal Injuries Assessment Board; minimising the scope for questionable claims; and increasing market competition. Implementation of this ambitious agenda has commenced and will be a key issue for myself and Minister of State Fleming, as well other members of Cabinet, especially those that will be working on this issue through the recently established Cabinet Committee on Economic Recovery and Investment’s Sub-Group on Insurance Reform. This Sub-Group is currently working on an Action Plan for Insurance Reform and it is our intention to have it published before the end of the year. This will lay out the specific actions and timelines for implementation, and who is responsible for doing so.
In terms of the discussions my Department has had on this issue, Minister of State Fleming and I have held a number of meetings with key stakeholders in recent months. These include bilateral meetings with the Alliance for Insurance Reform and Insurance Ireland. Most recently as part of a comprehensive engagement on the Government’s new insurance reform agenda, Minister of State Fleming concluded meetings with the eight largest non-life insurers in the Irish market, the Law Society, the Bar Council, Brokers Ireland, and the Motor Insurers’ Bureau of Ireland. These meetings are in addition to those with other Government entities, as well as numerous inter-Departmental working group meetings on the issue of insurance reform in advance of the publication of the aforementioned Action Plan for Insurance Reform.
83. Deputy Ruairí Ó Murchú asked the Minister for Finance the engagement he has had with chambers of commerce and an organisation (details supplied) regarding personal tax liabilities for employees resident in Ireland but who work in Northern Ireland; and if he will make a statement on the matter. [36710/20]
View answer137. Deputy Pearse Doherty asked the Minister for Finance if he will consider regularising the temporary relief granted by the Revenue Commissioners to cross-Border workers in response to the Covid-19 pandemic with respect to section 825A of the Taxes Consolidation Act 1997; if he will consider further tax measures to facilitate cross-Border workers in the future; and if he will make a statement on the matter. [39228/20]
View answer201. Deputy Imelda Munster asked the Minister for Finance if he will consider regularising the temporary relief granted by the Revenue Commissioners to cross-Border workers in response to the Covid-19 pandemic with respect to section 825A of the Taxes Consolidation Act 2005; if he will consider further tax measures to facilitate cross-Border workers in the future; and if he will make a statement on the matter. [39236/20]
View answerI propose to take Questions Nos. 83, 137 and 201 together.
I am aware of the matter raised by the Deputies and can advise that my officials have been in touch with their counterparts in Northern Ireland on the matter and that I have exchanged correspondence with the Cross-Border Workers Coalition.
In the case of a person who lives in Ireland but who works in another jurisdiction, the general tax position is that, as an Irish resident, they would be subject to Irish tax on their worldwide income from any source, including the employment exercised outside of the State. At the same time, the employment may also be subject to tax in the country in which the work is carried out. In accordance with general principles of international tax, where instances of double taxation arise on the same income, relief against Irish tax may be claimed by way of a credit for any foreign tax already paid, subject to the terms of any applicable Double Taxation Agreement (DTA). Unilateral relief may also be available in certain circumstances under domestic Irish legislation.
In the case of a person who lives in the State but who works in Northern Ireland, the terms of the Ireland/UK DTA provide for relief by allowing the Irish resident to claim a credit for the UK tax paid against any Irish tax that may be due on the same income.
The relief referred to by the Deputies is in addition to the above, and may apply, subject to certain conditions, where a person lives in Ireland but works wholly outside of the State.
I would advise the Deputies that this relief applies not only to persons with a UK based employment, but also for employments in the EU and DTA-network regions in compliance with Ireland’s treaty obligations. It therefore has broader application beyond the Northern Ireland issues raised.
The conditions for this Trans-Border relief are set out in section 825A of the Taxes Consolidation Act, 1997. In general, in order to qualify for this relief the individual must:
- Be tax resident in Ireland;
- work in a country that Ireland has a Double Taxation Agreement with in an employment held for a continuous period of 13 weeks in the year;
- the employment duties must be wholly exercised outside of the State with none performed in the State, save for duties considered incidental to the foreign employment;
- have paid tax in the other country and are not due a refund of the tax; and
- be present in Ireland for at least one day for every week they work abroad.
Where the Trans-Border relief applies in the case of an Irish resident who works in the UK, it operates in such a way that only UK tax is charged on the employment income and there is no charge to Irish tax on the same income. Any additional Irish tax that may be due is foregone under the domestic Irish legislation.
This tax relief is not normally available for Irish residents who work from home in Ireland. However, in light of the COVID-19 pandemic, Revenue have confirmed that if employees are required to work from home in the State due to COVID-19, such days spent working at home in the State will not preclude an individual from being entitled to claim this relief, provided all other conditions of the relief are met.
The flexibility being shown in the context of the pandemic should not be confused with the overall operation of the measure which requires that a person works outside the State and pays tax in the other jurisdiction in order to qualify for the relief.
In the event that the existing arrangements were to be revisited and done so specifically for Northern Ireland border workers, a number of issues could arise including in relation to equity between Irish residents in respect of employments carried out in Ireland, the competitive position of Irish employers, concerns regarding the potential for double non-taxation and established principles of international tax.
Any such consideration would also need to be examined in the overall context of Ireland’s EU membership, noting that it would likely not be possible for Ireland to give preferential treatment to UK based employments or Northern Ireland based employments only without also giving similar treatment to other EU Member States or DTA jurisdictions.
As is the case with all taxation matters, this position will be kept under review especially in the context of Brexit. However, I would assure the Deputies that in circumstances where this relief does not apply, relief for foreign tax may be applicable in the normal course set out above.
84. Deputy Richard Boyd Barrett asked the Minister for Finance his plans to extend the eligibility criteria for the Covid restrictions support scheme, CRSS, in order that it can be accessed by sole traders and small businesses such as taxi drivers, artists, musicians and live entertainment workers that do not have public facing premises; and if he will make a statement on the matter. [39234/20]
View answer106. Deputy Dara Calleary asked the Minister for Finance his plans to review the Covid restrictions support scheme in view of the number of businesses that are not eligible for the scheme despite being severely impacted by Covid-19 restrictions. [39188/20]
View answer111. Deputy John Lahart asked the Minister for Finance the status of the operation of the Covid restrictions support scheme; and if he will make a statement on the matter. [39190/20]
View answer133. Deputy Imelda Munster asked the Minister for Finance if he has considered the exclusion of travel agents from the CRSS scheme under level 3 restrictions; and if he will make a statement on the matter. [37043/20]
View answer134. Deputy Catherine Connolly asked the Minister for Finance if the Covid restrictions support scheme will be expanded to include businesses such as travel agents that have seen significant reductions in turnover as a result of Covid-19 but are currently only eligible for the Covid restrictions support scheme while under level 4 and 5 restrictions; and if he will make a statement on the matter. [39151/20]
View answer145. Deputy Richard Boyd Barrett asked the Minister for Finance the reason he has excluded sole traders and small businesses like taxi drivers, artists, musicians and live entertainment workers who do not have public-facing premises from accessing the Covid restrictions support scheme; and if he will make a statement on the matter. [39231/20]
View answer196. Deputy Pa Daly asked the Minister for Finance the reason the CRSS, in accordance with section 4.2.4, specifically excludes those wholesalers supplying goods to the hospitality and catering industry from the scheme given such wholesalers’ business has dramatically decreased directly in line with those in the hospitality and catering industry; and if he will make a statement on the matter. [34977/20]
View answer206. Deputy Brendan Griffin asked the Minister for Finance the advice he can provide on a matter (details supplied); and if he will make a statement on the matter. [39316/20]
View answer207. Deputy Róisín Shortall asked the Minister for Finance if he will address the limitation of the Covid restrictions support scheme, which requires companies to have a fixed premises and, as a direct result, excludes many businesses in the events industry, artists, taxi drivers and others from availing of the scheme; the options available to these companies; and if he will make a statement on the matter. [39325/20]
View answer208. Deputy Joe Carey asked the Minister for Finance if he will amend the Covid restrictions support scheme to include destination management companies for inbound travel (details supplied); and if he will make a statement on the matter. [39342/20]
View answerI propose to take Questions Nos. 84, 106, 111, 133, 134, 145, 196, 206, 207 and 208 together.
The Covid Restrictions Support Scheme (CRSS) was announced in the Budget on 13 October 2020. The details are set out in Finance Bill 2020 and guidelines on the operation of the scheme, including the eligibility criteria, are available on the Revenue website: (https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf).
The support is 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.
The CRSS applies to businesses carrying on trading activities from a business premises located in a region subject to restrictions, which requires the business to prohibit or considerably restrict customers from accessing their business premises and as a result, is operating at less than 25% of turnover in 2019.
Where a business does not ordinarily operate from a fixed business premises located in a region that is subject to restrictions, such as an events company or destination management company, that business will not meet the eligibility criteria. Similarly artists, musicians, taxi drivers and live entertainment workers are not eligible.
The CRSS is targeted at businesses whose premises are affected by the restrictions. 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.
The CRSS is an additional measure for businesses in a region subject to significant Covid-19 restrictions. Businesses who do not qualify under this scheme may be entitled to support under various measures put in place by Government, including existing supports available under the COVID Pandemic Unemployment Payment (PUP) and the Employment Wage Subsidy Scheme (EWSS) and the range of measures announced as part of Budget 2021 to support particular sectors including Tourism and live entertainment. 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.
Deputies will be aware that the Finance Bill is currently progressing through the Houses of the Oireachtas and I have no plans to extend eligibility of the scheme.
85. Deputy Ged Nash asked the Minister for Finance his views on the decision taken by the UN Committee on the Rights of the Child to examine the impact of Ireland’s international tax policy on the ability of countries of the global south to raise revenue and fulfil their human rights obligations; the details on any engagement his Department has had to date in 2020 with the UN committee in this regard; and if he will make a statement on the matter. [39158/20]
View answerAs a signatory of the United Nations Convention on the Rights of the Child, Ireland is required to submit regular reports on measures taken to give effect to the Convention. The Department of Children, Equality, Disability, Integration and Youth holds primary responsible for reporting back to the UN Committee, in coordination with Government Departments and other civil society stakeholders.
It is understood that tax policy was added to the List of Issues Report for Ireland arising from a submission from some NGOs. The inference that Ireland’s tax policies is negatively impacting on resources for the realisation of children’s rights in developing countries is unjustified, and misrepresents Ireland’s role in international tax reform and development.
Ireland has been a strong supporter of international tax reform and development.
First, Ireland joined the Addis Tax Initiative in February 2017 which is an international commitment to strengthen international cooperation in the area of tax and development. In this context, Ireland launched a Domestic Resource Mobilisation (DRM) initiative in 2019 to promote good tax governance in developing countries. DRM is a whole of government collaboration between my own Department, the Department of Foreign Affairs and the Revenue Commissioners to strengthen partner countries’ tax administrative capacity. It aims to support these countries in raising revenue fairly and effectively, through equitable and inclusive means, while also promoting good governance.
Ireland's long-term support of the African Tax Administration Forum (ATAF) was recognised at the 2019 General Assembly of ATAF, where Ireland was awarded a 'Most Valued Development Partner' award.
Second, Ireland was one of the first countries to commission an independent spill-over analysis of the impact of our tax system on developing countries. This project included: an analysis of trade and capital flows between Ireland and developing countries; an analysis of Ireland’s tax treaty network with developing countries; and review of relevant provisions in domestic tax legislation. This 2015 report concluded that there was no negative spill-overs from the Irish tax regime, or Ireland’s modern tax treaties, on the economies of developing countries.
Third, as regards the international tax framework, there have been significant developments in recent years through the OECD BEPS process. Ireland has been fully supportive of this process and has introduced legislation to implement it. I hope that further progress will be made at the OECD/G20 Inclusive Framework on BEPS as planned by mid-2021.
Ireland's response to the Committee is due by 30 October 2021. I welcome this opportunity to inform the Committee of how Ireland's approach to tax policy is contributing to Ireland's obligations with regard to the Convention on the Rights of the Child.
86. Deputy Jackie Cahill asked the Minister for Finance the number of businesses in County Tipperary that have qualified for support under the Covid restrictions support scheme; and if he will make a statement on the matter. [39204/20]
View answer89. Deputy James Lawless asked the Minister for Finance the number of businesses in County Kildare that have qualified for support under the Covid restrictions support scheme; and if he will make a statement on the matter. [39211/20]
View answer100. Deputy John McGuinness asked the Minister for Finance the number of businesses in County Kilkenny that have qualified for support under the Covid restrictions support scheme; and if he will make a statement on the matter. [39209/20]
View answer101. Deputy Joe Flaherty asked the Minister for Finance the number of businesses nationwide that have applied for funding under the Covid restrictions support scheme; the number that have been successful in their applications; and if he will make a statement on the matter. [39184/20]
View answer102. Deputy James O'Connor asked the Minister for Finance the number of businesses in County Cork that have qualified for the Covid restrictions support scheme; and if he will make a statement on the matter. [39195/20]
View answer114. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the number of businesses in County Carlow that have qualified for support under the Covid restrictions support scheme; and if he will make a statement on the matter. [39201/20]
View answer119. Deputy Willie O'Dea asked the Minister for Finance the number of businesses in County Limerick that have qualified for support under the Covid restrictions support scheme; and if he will make a statement on the matter. [39207/20]
View answer127. Deputy Dara Calleary asked the Minister for Finance the number of businesses in counties Mayo and Roscommon that have qualified for support under the Covid restrictions support scheme; and if he will make a statement on the matter. [39189/20]
View answer128. Deputy Éamon Ó Cuív asked the Minister for Finance the progress made to date with the roll out of the CRSS; the number of applications received to date for the scheme; and if he will make a statement on the matter. [34992/20]
View answer140. Deputy Marc MacSharry asked the Minister for Finance the number of businesses in counties Sligo and Leitrim that have qualified for support under the Covid restrictions support scheme; and if he will make a statement on the matter. [39199/20]
View answer150. Deputy Cathal Crowe asked the Minister for Finance the number of businesses in County Clare that have qualified for support under the Covid restrictions support scheme; and if he will make a statement on the matter. [39202/20]
View answer152. Deputy John Lahart asked the Minister for Finance the number of businesses in Dublin that have qualified for the Covid restrictions support scheme; and if he will make a statement on the matter. [39191/20]
View answerI propose to take Questions Nos. 86, 89, 100 to 102, inclusive, 114, 119, 127, 128, 140, 150 and 152 together.
The Covid Restrictions Support Scheme (CRSS) was announced in the Budget on 13 October 2020. The details are set out in Finance Bill 2020 and guidelines on the operation of the scheme, including the eligibility criteria, are available on the Revenue website at: https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf.
The registration system for CRSS was released by Revenue on 1 November 2020 and eligible businesses have been able to register for the scheme on the Revenue Online Service (ROS) since then. Up to 26 November 2020, 10,200 businesses have registered for CRSS in respect of 11,100 business premises. A further 3,700 applications are currently being processed by Revenue.
Businesses registered for CRSS, which carry on a business activity from a business premises located in a region that is subject to COVID-19 related restrictions, can now make a claim for payment under CRSS via the eRepayments system through ROS where they satisfy the qualification criteria for the scheme.
CRSS applies as regards restrictions in place from 13 October 2020 and eligible businesses that have been subject to restrictions since that date may make a claim covering the period from 13 October 2020 up to the expected end date of the current restrictions, which is 1 December 2020. One payment will be made to eligible businesses covering this restrictions period, with payments made by Revenue within 3 days of the submission of a qualifying claim. Up to 26 November 2020, Revenue has processed €51.6 million CRSS payments relating to 8,200 premises with €50.0 million of this processed for payment already.
Revenue is publishing regular statistical updates on the operation of CRSS, as they have done for the Temporary Wage Subsidy Scheme (TWSS) since March and are doing on a continuing basis for the Employment Wage Support Scheme (EWSS).
These updates are available at:
https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of-taxpayers-and-returns/covid-19-support-schemes-statistics.aspx.
The statistics include, among other items, the number of businesses successfully registered for CRSS by county. These statistics will be updated every Thursday (and published at the same link) with the most recent available data.
I would also refer the Deputies to my answer to PQ 39179 yesterday for a county by county breakdown of registrations.
87. Deputy Denis Naughten asked the Minister for Finance his plans to seek state aid approval from the European Commission; and if he will make a statement on the matter. [38841/20]
View answer192. Deputy Denis Naughten asked the Minister for Finance his plans to seek to state aid approval from the European Commission; and if he will make a statement on the matter. [39009/20]
View answerI propose to take Questions Nos. 87 and 192 together.
On the basis of the Deputy’s engagement with my officials in my Department, I understand that the Deputy’s query relates specifically to the issue of Just Transition, the Just Transition Fund and recommendations made by the Just Transition Commissioner.
In relation to the issue of Just Transition, I would outline to the Deputy that the Programme for Government, affirms the necessity for a just transition pathway to be found in relation to our aspiration for a green, low Carbon, economy. This pathway will deliver job opportunities to sectors and regions most affected by the transition away from a dependence on fossil fuels starting, with the midlands peat producing areas, and ensuring that vulnerable groups are helped, as transformative policies are developed and implemented. Achievement of these objectives will require the anticipation of challenges and planning for responses to them. The Programme for Government includes a number of specific commitments in relation to addressing this work, including:
- publishing a detailed all-of-Government implementation plan consistent with the recommendations of the first report of the Just Transition Commissioner;
- establishing a standing Office of the Just Transition Commissioner, with appropriate staffing and resources;
- addressing the need to plan for just transition by identifying and preparing for challenges that will arise in a number of sectors and regions;
- ensuring that financing is available and continue to grow the size of the Just Transition Fund.
The Government is committed to building upon the work of a number of different organisations in further developing its policy on Just Transition and in implementing the Programme for Government commitments.
As part of this approach, and as announced on Budget Day 2021, every single additional Euro raised by the increase in the Carbon Tax will be returned to citizens through a package of supports to protect vulnerable people, to secure a Just Transition, and to reduce our Carbon footprint. For Budget 2021, this included increases to energy efficiency schemes targeted at energy poverty, and the continuation of Carbon Tax investment programmes funded through Budget 2020 such as the Just Transition Fund.
I would further highlight to the Deputy that the policy of Just Transition is under the responsibility of the Minister for Environment, Climate, and Communication.
88. Deputy Pearse Doherty asked the Minister for Finance if he will support the Consumer Credit (Amendment) Bill 2018 and its objectives in reducing the usurious rates of interest charged by moneylenders; and if he will make a statement on the matter. [39229/20]
View answerAs the Deputy is aware, the Department of Finance undertook a public consultation in 2019 seeking views on capping the cost of licensed moneylenders and other regulatory matters in relation to moneylending. The submissions received, proposed a number of policy changes in relation to the moneylending industry and are broadly in favour of introducing an interest rate restriction.
A number of potential policy proposals are being prepared in light of these submissions and I expect to receive a draft report setting out these proposals, including in relation to interest rate restrictions, for my consideration shortly. Key to this process will be trying to balance improvements for borrowers with the potential for unintended consequences in terms of financial exclusion, if the supply of credit is reduced.
Once I has seen these proposals and considered them, my officials will liaise with the relevant Government Departments to seek consensus for a whole of government approach for the introduction of an interest rate cap and other regulatory changes.
In view of the ongoing work in my Department on this issue, I will not be supporting the Deputy's Bill at this point.
90. Deputy Catherine Connolly asked the Minister for Finance the impact assessment that has been carried out by his Department into the proposed changes to the retail export scheme minimum purchase threshold, particularly on businesses working in the tourism industry in Ireland; if he will commit to keeping the retail export scheme minimum purchase threshold at €0.01; and if he will make a statement on the matter. [39150/20]
View answer98. Deputy Imelda Munster asked the Minister for Finance if he has made representations regarding the proposed changes to the retail export scheme in the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020; if he has liaised with stakeholders on the consequences of the proposed change; and if he will make a statement on the matter. [37045/20]
View answer105. Deputy Brendan Griffin asked the Minister for Finance his views on the impact on businesses by plans regarding tax back for shoppers from overseas in terms of raising the threshold for qualifying items; if his attention has been drawn to the concerns of already struggling retailers, craft producers and other Irish producers; and if he will make a statement on the matter. [34934/20]
View answer113. Deputy Seán Canney asked the Minister for Finance his views on the impact on Irish tourism and the retail sector of the proposed changes in the retail export scheme in the Brexit omnibus Bill. [38204/20]
View answerI propose to take Questions Nos. 90, 98, 105 and 113 together.
The Retail Export Scheme enables visitors that are resident outside the EU benefit from VAT relief on goods purchased in Ireland and subsequently taken outside of the EU. Under existing rules, when the UK becomes a third country, visitors from Britain will be able to avail of the scheme. No minimum threshold currently applies in respect of expenditure on which VAT relief may be claimed.
The Bill as published provides that the value of qualifying goods must exceed €175 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 Bill also introduces a 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.
In recognition of the difficulties facing retailers, especially businesses in the tourism sector, I am bringing forward an amendment at committee stage to reduce the threshold to €75. This reduction retains protections for the exchequer while also acknowledging the potential impact that not making this change would have on retailers across the country at this difficult time.
