Written Answers Nos. 187-211
187. Deputy Cathal Crowe asked the Minister for Transport if he will intervene in the ongoing situation with the National Driver Licence Service in which learner drivers and those in need of licence renewals are being left waiting months on end for appointments. [1609/21]
View answerMy Department is in constant contact with the Road Safety Authority since the start of the pandemic regarding all of its services, the impact of Covid-19 on those services, and how they can best be maintained in the current circumstances.
The National Driver Licence Service, provided by the Road Safety Authority (RSA), resumed operations in June, following the closure of the centres due to the Covid-19 pandemic restrictions. Since services resumed, there has inevitably been an increased level of demand due to the consequent backlog.
All appointments must be booked in advance as it is not possible to facilitate any walk-ins due to the social distancing requirements and in the interest of protecting the staff and customers. This, of course, has led to an increase in the demand for appointments.
Under Covid-19 Level 5 Government restrictions, applicants can attend an appointment at an NDLS centre provided they are an essential worker involved in the provision of essential services or essential retail outlets. Details on what is included in the list of essential workers and retail outlets is available on www.gov.ie.
The RSA is working with their providers to see how they can create the additional capacity needed as quickly as possible, while adhering to the return to work protocol for when normal service resumes after level 5. Options being introduced include a combination of additional staff, extended and additional operating hours (i.e. Sundays where needed), and the provision of overtime.
The National Driver Licence Service (NDLS), has expanded the online facility to accommodate all driving licence and learner permit applications to enable accessibility online rather than by calling to an office. A verified MyGovID account, which requires a Public Services Card, is needed to access the online system.
The possible extension of driving licences is currently under consideration in Europe due to Covid-19. The extension of learner permits is also under consideration. A decision is expected shortly.
All persons of 70 years of age and over will now be invited to renew their driving licence or learner permit by post. Applicants will be contacted directly by the National Driver Licence Service (NDLS). Previously only those aged 70 and over who renew their licence on a yearly basis could avail of this service.
They do not need to contact the NDLS directly about their application. All those 70 years and over who have previously presented at an NDLS centre in the last 5 years and whose licence or permit is due to expire will receive a renewal pack in the post and be invited to apply by post. Although this is a temporary measure due to the Covid-19 pandemic, no end date has been applied to this provision at this time.
In light of the resurgence of Covid-19 cases and, in order to ease the burden on medical services, my Department has extended the exemption that allows for those aged over 70 to apply for a driving licence without the need to provide a medical report until 30 June 2021 unless they have an identified or specified illness. A previous exemption had been in place until 31 December 2020.
188. Deputy Noel Grealish asked the Minister for Transport the status of the N6 Galway city ring road; the stage the project is at; the next stages in the process; when a decision is likely to be made; the year funding is likely to be allocated for the project; and if he will make a statement on the matter. [1618/21]
View answerAs Minister for Transport, I have responsibility for overall policy and securing exchequer funding in relation to the National Roads Programme. Once funding arrangements have been put in place with Transport Infrastructure Ireland (TII), under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for TII, in conjunction with the local authorities concerned. This is also subject to the requirements of the Public Spending Code Guidelines and necessary statutory approvals. In this context, TII is best placed to advise on the current status and funding of this proposed project, pending the conclusion of the Government's review of the NDP.
Noting the above position, I have referred your question, on this occasion, to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
189. Deputy James Lawless asked the Minister for Transport the reason for the refusal of an exchange of a UK driving licence for an Irish driving licence for a person (details supplied); and if he will make a statement on the matter. [1638/21]
View answerAn EU driving licence is exchangeable for an Irish driving licence, except where the licence issued by the other Member State was itself issued in exchange for a licence from a state that is not a Member State, or a state that Ireland does not have a licence exchange agreement with.
Therefore a UK licence that was obtained when the UK was an EU Member State, through the exchange of a Falkland Islands licence, is not exchangeable for an Irish licence. For clarification, the Falkland Islands/Las Malvinas are a self-governing British Overseas Territory, subject to United Kingdom sovereignty, and are not a part of the United Kingdom itself.
As Ireland does not have a driving licence exchange agreement with the Falkland Islands, there is no option but to go through the process of obtaining an Irish licence.
While a person who has a full but non-exchangeable licence will have to go through the normal driver learning process, they can avail of the shorter Essential Driver Training of 6 lessons instead of the usual 12, and do not have to wait the usual minimum of 6 months before taking a driving test.
This situation has not changed since the UK left the EU and an Agreement on the exchange of driving licences between the UK and Ireland was put in place on 1 January 2021.
However, if a person who exchanged a Falkland Islands licence for a UK licence and then went on to obtain a higher category licence for example a truck or bus licence in the UK then that licence should qualify for exchange purposes.
190. Deputy Ged Nash asked the Minister for Transport the status of the planned Road Safety Authority driving test centre for Drogheda, County Louth; when learner drivers can expect to be in a position to book their driving tests in the proposed Drogheda centre; if those who have already booked a test in the Navan or Dundalk test centres will be able to change their test location to Drogheda; and if he will make a statement on the matter. [1639/21]
View answerSpecific details on individual test centres are an operational matter for the Road Safety Authority. I have therefore referred this Question to the Authority for direct reply. I would ask the Deputy to contact my office if a response has not been received within ten days.
191. Deputy Ged Nash asked the Minister for Transport his plans to clear the backlog of learner drivers as a result of Covid-19-related lockdowns; and if he will make a statement on the matter. [1640/21]
View answerMy Department is in constant contact with the Road Safety Authority since the start of the pandemic regarding all of its services, the impact of Covid-19 on those services, and how they can best be maintained in the current circumstances.
Due to suspension of driver testing services in the first 2020 lockdown, along with the health protocols since resumption of service and the further curtailing of services during subsequent level 5 restrictions, a significant backlog has developed. The need to once again return to level 5 restrictions for reasons of public health will inevitably impact further on delays to driver testing. During the level 5 period, driving tests will be available only to those who are involved in essential services, including essential retail work.
While the service is limited during level 5 restrictions, the Road Safety Authority is examining ways of increasing the number of tests within health constraints with an eye to resuming wider testing after level 5. This includes increasing the number of testing staff to help reduce and, over time, eliminate the backlog.
Following discussions with the RSA, my Department has recently approved the hiring of a further 40 temporary testers for 22 months, and the process of recruitment is now underway. However it will take some time for people to be selected and trained.
These new hires will be in addition to the 36 temporary testers who I previously gave sanction to rehire during 2020.
These measures will help to increase testing capacity. However, I would like to stress, that many of the issues impacting on the delivery of service are concerned with the throughput of centres themselves in light of the restrictions, rather than on the availability of staff.
The RSA are also looking at a number of other measures, including whether the number of tests a driver tester can perform each day can be increased. Any decision on this matter will be guided by health protocols.
The Department has been in discussions with the RSA on how to return to the normal target for the maximum waiting time, which is around ten weeks. It is clear that it will not be possible to arrive at this quickly, given restraints which must be in place due to the pandemic. It is important to recognise that there are no quick fixes and that the continuing build-up of applications as the pandemic goes on means that it will take time to reach a normal waiting time.
192. Deputy Ged Nash asked the Minister for Transport if he will extend the suspension of requirement for over-70s to provide a medical report when applying for a driving licence, which lapsed on 31 December 2020 in view of current circumstances; and if he will make a statement on the matter. [1641/21]
View answerThe requirement for those over 70 (without an identified or specified illness) to provide a medical report had been removed up to 31 December 2020. In view of the current Covid resurgence, I have agreed to a further extension of the exemption to provide a medical report until 30 June 2021.
However, In the interest of road safety, over 70s with an identified or specified illness must provide a medical report with their driving licence/learner permit application and they should contact their GP in this regard.
193. Deputy Fergus O'Dowd asked the Minister for Transport the details of future planning discussions and meetings that have taken place within his Department from 2019 to date with port companies and local authorities in counties Louth and Meath in relation to the development of ports in the areas; and if he will make a statement on the matter. [1658/21]
View answerFor the purposes of this question, I am focusing on Drogheda Port Company, ownership of which was transferred to Louth County Council in 2017. Oversight of the company now rests with Louth County Council.
Since December 2019, officials from my Department met with officials from the port company on two occasions to discuss the Bremore project. These meetings discussed the consent processes that will be needed to progress the project and possible sources of funding for the project.
In December 2020, the port company announced plans to develop a new deepwater facility at Bremore Head. The granting of planning permission for the project is a matter for the port company and its partners to pursue through the planning process. My Department has no function in this matter. All other consent requirements will be progressed by the port company in conjunction with Louth County Council. Where issues of national ports policy arise, my Department will, of course, engage with the company and the local authority, as appropriate.
194. Deputy Denise Mitchell asked the Minister for Transport if national car test centres will continue to operate as normal for the foreseeable future. [1664/21]
View answerAs provided for under Part 2, Item 14(x) of the Schedule to the Health Act 1947 (Section 31A - Temporary Restrictions) (Covid-19) (No. 10) Regulations 2020 (S.I. No. 701 of 2020), the NCT has been classified as an essential service. This is in light of its role in protecting public safety, including the safety of essential workers.
195. Deputy Eoin Ó Broin asked the Minister for Transport if he will consider granting an exemption to learner drivers who are essential workers and have completed 12 driving lessons to allow them drive to and from work unaccompanied by a fully licensed driver for the period of level 5 restrictions in view of reduced capacity on public transport causing issues for essential workers during level 5 restrictions and the lengthy delays in accessing the driving test. [1672/21]
View answerI will not be granting an exemption to learner drivers to drive unaccompanied, irrespective of the circumstances.
It must be understood that a learner permit is not a licence, but a permit to allow a person to drive while learning. The purpose of the driving test is to set out the minimum level of knowledge, skill and competency that a learner must demonstrate in order to become a fully licensed driver. Until a learner can meet this standard and pass this test, they are not safe to take to our roads without appropriate supervision.
Studies have repeatedly shown that unaccompanied learner drivers are markedly more likely to be involved in fatal collisions. For that reason, there can be no exceptions to the current laws in force around learner drivers. Regrettably, there was an increase in fatalities on our roads in 2020, despite huge reductions in traffic volumes.
An unaccompanied learner driver who is stopped by An Garda Síochána may face penalty points, a fixed charge, seizure of the vehicle and possible prosecution.
Public safety is paramount, and never more so than in the case of our essential workers, whether through infection or through death or injury on our roads. For this reason, we must not relax the standards required of our drivers before being allowed to drive unaccompanied.
196. Deputy Éamon Ó Cuív asked the Minister for Transport if it is planned to give a further exemption to persons over 70 years of age renewing their driving licences in relation to the need to have a medical certificate with the application; and if he will make a statement on the matter. [1708/21]
View answerThe requirement for those over 70 (without and Identified or specified illness) to provide a medical report had been removed up to 31 December 2020. Due to the recent rise in Covid-19 cases my Department has provided for a further extension until 30 June 2021.
In the interest of road safety, over-70s with an identified or specified illness must provide a medical report with their driving licence/learner permit application. They should contact their GP in this regard.
197. Deputy Paul Murphy asked the Minister for Transport if he will instruct the National Transport Authority to reduce the renewal fee for small public service vehicle licenses that are due for renewal in 2021 from €250 to €50 in the context of the dramatic reduction of incomes of taxi and small public service vehicle drivers due to the Covid-19 restrictions. [1734/21]
View answerThe National Transport Authority (NTA), the statutory regulator, has since the start of the pandemic taken action to reduce the operating costs for small public service vehicle (SPSV) operators. It has extended vehicle age limits and waived late renewal fees though to March 2021. Furthermore, my Department is providing funding to the NTA to enable it to waive its standard SPSV (vehicle) licence renewal fees in 2021. Arrangements for SPSV driver licences, which are issued by An Garda Síochána, are unchanged.
198. Deputy Fergus O'Dowd asked the Minister for Transport the status of the Ardee bypass project; the associated key timelines and relevant information; and if he will make a statement on the matter. [1764/21]
View answerAs Minister for Transport I have responsibility for overall policy and securing exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code Guidelines and the necessary statutory approvals. In this context, TII is best placed to advise you on the status of this project.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
199. Deputy Richard Boyd Barrett asked the Minister for Transport the details for his Department for outsourcing to consultancies of specifically Covid-19-related work, services or advice; and if he will make a statement on the matter. [1801/21]
View answerThe Department of Transport facilitated the initial setting up by daa of a call centre in relation to the passenger locator forms under the responsibility of the Department of Health. This involved payment of the cost of legal advice.
200. Deputy Brendan Griffin asked the Minister for Transport the status of the speed limit appeals process (details supplied) that is due to be introduced; and if he will make a statement on the matter. [1882/21]
View answerThe most recent speed limit guidelines were issued in March 2015 following a review by a speed limit review working group. Local Authorities (in conjunction with TII in respect of National Roads) are able to amend and set Speed Limits as appropriate and in accordance with the Speed Limit Guidelines for different sections of the road network as required and adopt by-laws under a reserved function.
This is an on-going process for local authorities and it can require a review by local authorities when speed limit guidance is updated or when local authorities believe that safety can be improved by better matching certain speed limit zones to existing guidance/best practice. In this context the 2020 Programme for Government has committed to review and reduce speed limits, where appropriate, to address both road safety issues and carbon emissions, and ensure greater compliance.
Ireland's road network is extensive and inconsistent, which means that a 'one size fits all' solution for Speed Limits for the 100,000 kilometre road network is not always possible and queries will arise. My Department is currently developing a speed limit appeals process whereby a member of the public can query or appeal a speed limit to the local authority.
I envisage the proposed appeal process will be submitted for Ministerial approval in Q1 of 2021.
201. Deputy Christopher O'Sullivan asked the Minister for Finance the definition of the meaning "wedding venue" under the Covid restrictions support scheme; and if it includes hotels. [44876/20]
View answerThe Covid Restrictions Support Scheme (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 is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to restrictions introduced in line with the Living with Covid-19 Plan.
Details of CRSS were published in Finance Act 2020 and detailed operational guidelines, which are based on the terms and conditions of the scheme as set out in the legislation, have been published on the Revenue website at: https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf.
To qualify under the scheme a business must, under specific terms of the Covid restrictions, be required to either prohibit or significantly restrict, customers from accessing their business premises to purchase goods or services, with the result that the business either has to temporarily close or to operate at a significantly reduced level.
The CRSS does not specifically contain a definition for "wedding venue". The Government's Plan for Living with Covid-19 makes specific provision in relation to the numbers that may attend weddings at the various levels of restrictions. A wedding venue business, including a hotel, that is required to prohibit or significantly restrict members of the public from accessing their business premises, with the result that the business is required to temporarily close or to operate at significantly reduced levels will be eligible for the CRSS. Whether the level of restrictions under the Plan for Living with Covid-19 means that the business is required to prohibit or significantly restrict members of the public from accessing their business premises will depend on the level of the restrictions and the particular facts of the case.
I can confirm that a wedding venue can include a hotel. A hotel trade will consist of more than the hosting of wedding receptions and a hotel must have regard to its entire business carried on from its premises in determining whether it is significantly restricted from operating under the public health regulations in force and if it satisfies the eligibility criteria for the scheme.
202. Deputy Pádraig O'Sullivan asked the Minister for Finance the key measures under the action plan for insurance reform; and if he will make a statement on the matter. [44884/20]
View answerAs the Deputy will be aware, the Government's Action Plan for Insurance Reform, launched last month, sets out 66 actions to bring down costs for consumers and business; introduce more competition into the market; prevent fraud and reduce the burden that insurance costs can have on business, community and voluntary organisations. The implementation of the Action Plan will be overseen by the Sub-Group on Insurance Reform within the Cabinet Committee on Economic Recovery and Investment. The Action Plan includes actions to be brought forward by my Department, as well as the Departments of Justice and Enterprise, Trade and Employment, over the next 18 months.
Some of the key measures under the Action Plan are as follows:
- increasing market transparency following the publication of the second private motor report of the National Claims Information Database (NCID), and the planned expansion of the scope of the NCID to include employer and public liability insurance;
- reviewing the duty of care legislation;
- providing for the Judicial Council's accelerated adoption by 31 July 2021 of new personal injuries guidelines to replace the Book of Quantum;
- consideration by the Department of Justice of the Law Reform Commission's recent Report on Capping Damages in Personal Injuries Actions;
- looking at how to further enhance the role of the Personal Injuries Assessment Board; and,
- making proposals on insurance competition via the recently-established Office to Promote Competition in the Insurance Market.
It might also be of interest to the Deputy to note that, in addition to this work, there was a round of intensive engagement with key stakeholders in relation to the Government's insurance reform agenda. In this regard, Minister of State Fleming has held meetings with the Alliance for Insurance Reform; the State Claims Agency; Insurance Ireland; Irish Public Bodies Mutual Insurance; the Central Bank of Ireland; Brokers Ireland; the Law Society of Ireland; the Bar Council of Ireland; and the MIBI. More recently, he has also concluded a series of meetings with the main insurers in the Irish market and he has written to the CEOs of the main insurance companies operating in the Irish market seeking their views on a range of issues. The Deputy can be assured that there will continue to be engagement with these various stakeholders throughout 2021.
In conclusion, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key priority issue for this Government. It is my intention, along with Minister of State Fleming, to work to ensure that these commitments are progressed within the timeframes envisaged in the Action Plan. In this regard, we will work with our Government colleagues to ensure that a Whole-of-Government approach continues to be the focus and that the cumulative impact of all of the actions in the Action Plan can have a positive effect on the affordability and availability of insurance for individuals, businesses and voluntary groups across Ireland.
203. Deputy Cian O'Callaghan asked the Minister for Finance if his attention has been drawn to the fact that the outdoor activities sector is excluded from the Covid restrictions support scheme due to the fact that most of the sector's business activity is not being delivered at a fixed business premises; and if he will make a statement on the matter. [45144/20]
View answer206. Deputy Catherine Connolly asked the Minister for Finance if he will extend eligibility under the Covid restrictions support scheme to camping and caravan parks given the severe impact of the Covid-19 restrictions on this sector; if he will reconsider the current classification of camping and caravan parks as outdoor-activity businesses given that they are registered and approved accommodation providers that operate from fixed business premises; and if he will make a statement on the matter. [1358/21]
View answer208. Deputy Seán Canney asked the Minister for Finance if he will include outdoor activity businesses in the Covid restrictions support scheme; and if he will make a statement on the matter. [44664/20]
View answer209. Deputy Cathal Crowe asked the Minister for Finance if the Covid restrictions support scheme will be made available to the approximately 80 bookmakers who work on Ireland’s racecourse sector and therefore have no permanent office and have been without income since the beginning of the Covid pandemic. [44691/20]
View answer210. Deputy Imelda Munster asked the Minister for Finance his plans to include outdoor activity providers in the Covid restrictions support scheme; and if he will make a statement on the matter. [44736/20]
View answer222. Deputy Dara Calleary asked the Minister for Finance if he will address a matter regarding the Covid restrictions support scheme in the case of a person (details supplied). [44916/20]
View answer229. Deputy Brendan Griffin asked the Minister for Finance his views on a matter regarding a caravan park (details supplied); and if he will make a statement on the matter. [45076/20]
View answer236. Deputy Niall Collins asked the Minister for Finance if a decision to refuse the Covid restrictions support scheme application by a person (details supplied) will be reviewed; and if he will make a statement on the matter. [1022/21]
View answerI propose to take Questions Nos. 203, 206, 208 to 210, inclusive, 222, 229 and 236 together.
The Covid Restrictions Support Scheme (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 is available to companies, self-employed individuals and partnerships who carry on a trade or trading activities, the profits from which are chargeable to tax under Case I of Schedule D, from a business premises located in a region subject to restrictions introduced in line with the Living with Covid-19 Plan.
Details of CRSS were published in Finance Act 2020 and detailed operational guidelines, which are based on the terms and conditions of the scheme as set out in the legislation, have been published on the Revenue website at: https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf.
To qualify under the scheme a business must, under specific terms of the Covid restrictions, be required to either prohibit or significantly restrict, customers from accessing their business premises to purchase goods or services, with the result that the business either has to temporarily close or to operate at a significantly reduced level. For the purposes of CRSS, a qualifying "business premises" is a building or other similar fixed physical structure in which a business activity is ordinarily carried on.
Where a business does not ordinarily operate from a fixed business premises, such as a haulage business that ordinarily operates from mobile vehicles, that business will not meet the eligibility criteria for CRSS. Similarly, a business such as a photographer or videographer that provides its services at events, including weddings, at different venues will not meet the eligibility criteria.
I have also previously indicated that an on-course bookmaker operating from a mobile premises or a premises not permanently fixed in place, such as a stand at a racecourse, is not operating from a business premises for the purposes of CRSS and therefore is not eligible to make a claim under the scheme. The Deputies will also appreciate that outdoor activity businesses, by their very nature, generally do not provide services in premises to which access is restricted. Therefore, they are not eligible for the CRSS and I have no plans to change this. In the same way, camping and caravan operations are not eligible for the CRSS.
It is not sufficient that the trade of a business has been impacted because of a reduction in customer demand as a consequence of Covid-19. The scheme only applies where, as a direct result of the specific terms of the Government restrictions, the business is required to either prohibit or restrict access to its business premises.
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.
The purpose of the CRSS is to provide additional support to the businesses who have had to close temporarily or significantly restrict access to their premises as a direct result of public health Regulations. The Government will continue to assess the effects of the Covid-19 pandemic on the economy and I will continue to work with Ministerial colleagues to ensure that appropriate supports are in place to mitigate these effects.
204. Deputy Pádraig O'Sullivan asked the Minister for Finance if consideration will be given to applying a tax credit (details supplied) to persons who retrofit homes for energy efficiency; and if he will make a statement on the matter. [1028/21]
View answerAs the Deputy will appreciate, the introduction of any new tax expenditure measures would arise in the context of the Budget and Finance Bill process. Furthermore, I must always be mindful of the public finances and the many demands on the Exchequer. Tax reliefs, no matter how worthwhile in themselves, lead to a narrowing of the tax base.
Proposals for tax expenditure measures should be assessed in accordance with my department's Tax Expenditure Guidelines. Drawing on economic evidence, these make clear that it is important that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures and where a tax-based incentive is more efficient than a direct expenditure intervention.
The proposal for a domestic retrofit tax incentive was explored by my officials in a Tax Strategy Group paper on Climate Action and Tax, published in July 2019 (available at https://assets.gov.ie/19116/c447474fea5e422080a6384b7a84fbed.pdf).
The paper observed that:
- In terms of current direct expenditure measures in the energy efficiency sector, the Government continues to make grants available to householders who wish to improve the energy efficiency of their home through the SEAI's Better Energy Homes (BEH) and Deep retrofit Grant programme.
- Recent research undertaken by the ESRI into householder preferences regarding retrofit subsidy schemes found that households strongly prefer cash payment subsidies (i.e. up-front discounts or cash back post works) versus other indirect methods of financial support (e.g. tax credits).
- From an equity perspective, tax expenditure measures can be regressive by nature, given that only those who pay taxes qualify, and those with greatest income benefit the most. As such, a tax incentive measure as proposed may be of little benefit to certain groups who are most likely to suffer from energy poverty, for example the elderly or those on limited incomes.
- The Home Renovation Incentive (the tax measure on which the proposal was based) expired on 31 December 2018 following an ex-post analysis of the scheme. The review found that in the context of the current housing supply shortage, and the need at that time to deliver 25,000 additional housing units per annum over the period 2017-2021, there was a risk that the retrofit scheme could lead to increased competition for scarce resources within the construction sector, leading to upward pressure on construction costs and house prices. The review concluded that the potential for displacement of labour from work on new builds to work on home renovations would create a high opportunity cost of labour associated with HRI which was not present at the inception of the scheme. Given the continued constraints on the construction sector's ability to hire labour to deliver a supply of new housing units, similar issues may arise with regard to the introduction of this proposed tax based measure.
Having regard to these considerations, the case for introducing a tax measure along the lines mentioned by the Deputy is not a strong one from the perspective of my Department.
205. Deputy Patrick Costello asked the Minister for Finance the amount allocated annually to date to the Dublin City Council living city initiative; and the details of future expansion of funding and the geographic remit within Dublin city as facilitated by departmental funding. [1164/21]
View answerThe Living City Initiative (LCI) was provided for in Finance Act 2013 and commenced on 5th May 2015. In my Budget 2020 speech, I announced that the LCI would be extended from 5 May 2020 to 31 December 2022.
It is a tax incentive aimed at the regeneration of the historic inner cities of Dublin, Cork, Galway, Kilkenny, Limerick and Waterford. The scheme provides income or corporation tax relief for qualifying expenditure incurred in refurbishing/converting qualifying buildings which are located within pre-determined 'Special Regeneration Areas' (SRAs). As a tax expenditure measure, LCI is not a voted expenditure; the incentive is administered by Revenue on a national basis and allocations are not made to local authorities. As such, it is not possible to identify the extent to which tax relief under the scheme may have supported qualifying work within any one local authority area, including the area within the remit of the council mentioned by the Deputy.
There are three types of relief available:
- Owner-occupier residential relief;
- Rented residential relief; and,
- Commercial/Retail relief.
The following table outlines the cost/uptake for all 3 elements combined of the scheme nationally between 2013 and 2018 (the most recent year for which data are available).
|
Year |
No. of claimants |
Max Tax Cost (€M)* |
Amount claimed (€M) |
|
2018 |
27 |
0.2 |
0.5 |
|
2017 |
20 |
0.1 |
0.4 |
|
2016 |
15 |
0.2 |
0.5 |
|
2015 |
13 |
0.2 |
0.5 |
|
2014 |
N/A |
0.1 |
0.2 |
|
2013 |
N/A |
0.05 |
0.1 |
*assumed at 40% for IT and 12.5% for CT
The special regeneration areas for the Living City Initiative were designated following consultation with the relevant city councils and an independent review by a third party advisor. Specific criteria were set down in respect of the areas which should be included within the remit of the LCI which were required to be taken into account by the relevant city councils when putting forward the proposed Special Regeneration Areas for each city. In particular, it was stated that the Special Regeneration Areas should be inner city areas which are largely comprised of dwellings built before 1915, where there is above average unemployment and which demonstrate clear evidence of neglect, dereliction and under-use. It was specified that areas which are generally regarded as affluent, have high occupancy rates and which do not require regeneration should not be included in the Special Regeneration Areas. I have no plans at present to amend the zones.
Officials in my Department reviewed the Living City Initiative in 2016 in consultation with the relevant councils and the then Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs. On foot of that review, a number of changes were brought forward to the scheme in Budget 2017 in order to make the initiative more attractive and effective. The principal change extended the residential element of the scheme to landlords, who are now able to claim the relief by way of accelerated capital allowances for the conversion and refurbishment of property, which was built prior to 1915, where such property is to be used for residential purposes. In addition, the requirement for a pre-1915 building to have been originally constructed for use as a dwelling in order to qualify for the residential element of the Initiative was removed. The floor area restriction for owner-occupiers has also been removed, while the minimum amount of capital expenditure required for eligibility for relief, under all elements of the scheme, was also amended and must now only exceed €5,000.
The aim is to get the design of the Initiative right so that it can work in an effective manner. Once it is clear that this have been achieved, it will then be possible to consider if and how the Initiative might be extended to other locations. Unless the underpinning scheme is made more effective, extension of eligibility for it to other towns is likely to be largely ineffective.
207. Deputy Danny Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding tax relief for dental expenses; and if he will make a statement on the matter. [1762/21]
View answerThe rationale behind income tax relief for health expenses is broadly intended to provide assistance for those expenses of a significant or exceptional nature.
Expenses for treatment of a routine nature or minor nature are therefore typically excluded. An example of this is that routine dental treatment does not attract the relief, though orthodontic treatment would.
Consistent with this rationale, tax relief in respect of qualifying health expenses is provided for in section 469 of the Taxes Consolidation Act 1997.
Routine dental treatment is explicitly excluded under the legislation and is defined as "the extraction, scaling and filling of teeth and the provision and repairing of artificial teeth or dentures".
However, an individual can claim tax relief in respect of non-routine dental care provided by a registered practitioner. A comprehensive and indeed non-exhaustive list of relevant procedures is available on the Revenue website. This list includes major interventions such as periodontal treatment for gum disease and orthodontic treatment to provide braces.
The exclusion of expenses incurred in respect of routine dental treatment has been in place since the relief's inception in 1967 and I am satisfied that the legislation as drafted and implemented provides sufficient flexibility for expenses that should qualify. There are no plans to change these arrangements at this time.
In this regard I note that tax relief for medical expenses is a commonly availed of relief – the most data from 2018 highlights that 522,800 taxpayer units utilised the relief at an Exchequer cost of €156m.
If routine dental expenses, such as dentures, were tax relieved, it would inevitably lead to calls for other treatments to similarly qualify for relief. This could greatly increase the overall cost of the tax relief and given the current challenging fiscal environment, I am not predisposed to such a potential cost increase.
However, the Deputy will be aware that in recent years there has been an increase in the level of dental benefits available through the social insurance system administered by the Department of Social Protection. In this regard it is noted that tax relief is only of assistance to individuals who have sufficient tax liability and so direct expenditure may be a more effective way of targeting assistance to those who may need a specific support.
211. Deputy Catherine Murphy asked the Minister for Finance if assets were sold back to and-or transferred by NAMA and-or a third party to a person (details supplied) following their bankruptcy; and if he is satisfied that the beneficial owner procedures have been adhered to in relation to this asset. [44742/20]
View answerAs the Deputy will be aware, NAMA does not typically own or sell properties, rather NAMA owns loans for which the properties act as security. Secured properties remain in the ownership and control of their registered owners, or appointed receivers where applicable. These parties also manage the sales process.
As regards the property referenced by the Deputy, I am advised that the property was openly marketed and sold by the appointed receiver in 2013. Once a property has been sold, NAMA has no further involvement.
By virtue of sections 99 and 202 of the NAMA Act, NAMA is precluded from disclosing the name of the purchaser of the asset, however NAMA has confirmed to me that the purchaser was not the individual referenced by the Deputy. Additionally, NAMA confirms that, at the time of the sale, NAMA obtained written confirmations from the purchaser of the property which confirmed that, among other things, the purchaser was not a party precluded from completing the purchase by virtue of section 172(3) of the NAMA Act.
Section 172(3) is a legal provision that prevents assets held as security for loans acquired by NAMA from being sold back to defaulting debtors, or persons acting on behalf of defaulting debtors. Additionally, under section 7(2) of the NAMA Act, any person who intentionally, recklessly or through gross negligence provides false or inaccurate information to NAMA commits a crime.
On the basis of the information provided by NAMA regarding this transaction, I am satisfied that the asset disposal was compliant with section 172 of the NAMA Act.
